Welcome to the ALL-NEW Kingdom of California - HOT TOPICS, Vol.2 No.2 - Jan. 20, 2006

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3rd Careers HOT TOPICS Week Ending Jan. 20, 2006 - Vol. 2, No.2

Welcome to the ALL-NEW Kingdom of California

This week we feature sound bites from the changing demographics that will deeply affect where and how you, and your children, will live and work if you, and they, are Californians. Should you imagine that this week’s newsletter is only important to Californians, may I remind you that it is important to draw nation-wide conclusions about these changes because historically, for better or worse, “As goes California, so goes the Nation!”

As the most populous of the Western States, California will lead growth that is nearly twice the national average. It is expected to be the fastest growing State from 1995-2025 (56%). Immigration (legal and illegal) is expected to play a dominant role in the population growth of California. In hard numbers, this is expected to add 8 million immigrants - or more than 1/3rd of the immigrants added to the Nation’s population over the past 20 year period. California contained 12 percent of the Nation's population in 1995. By 2025, California is expected to be home to 15 percent of the Nation's population.From 1995 to 2025 California will add 17.7 million people (equivalent to nearly the current population of New York State).

Here’s the 3rd Careers’ Punch Line! California’s over 60 population is expected to grow more than twice as fast as the total population. There will be an overall increase of 112% by 2020. More than half of California counties will have a 100% increase in this age group. Eleven counties will have growth rates of over 150% (Central and Southern California counties).

Think about the following questions (regardless of your place of residence):

If we do nothing about Social Security and Medicare, will there be enough Gen X/Y’rs to support us?

Will taxes be significantly higher because of the nationwide aging of America?

Will healthcare be available at any cost to people who do not work… at any age?

Should the minimum eligibility age for Social Security and Medicare be raised now?

If the mature generation continues to work, in some capacity, will they be less of a burden on the younger generation and the entitlement systems Americans have come to rely upon?

Will there be any entitlements (SSI, Medicare, Pension Plans) at all in 10 years? (SSI, Medicare and Medicaid cost the Government $1 trillion Dollars in 2004 – nearly half of all Federal spending.)

What initiatives might you recommend to your employer relative to the maturing workforce?

What can you do?

Were YOU born in the 1940’s?

Here’s what was happening in the American world of work in the 1940’s. Government reclassified 55% of their jobs allowing women and African Americans to fill them. Single women were given preference and, in 1943, married women were “allowed” to work. The first immersion of women into the workforce was established by our government, not our private sector, as some believe. Average salary was $1299 per year, minimum wage was $.43/hour and life expectancy was 68 for women and 60 for men. Note that men were expected to die before their full SSI benefits kicked in! This is why most people were advised to take reduced benefits at age 62. Hmmm…Do you think that opting into SS benefits as soon as eligible is a good plan today?

If you would like me to feature changing demographics in your State, please email me and I’ll research and report on your behalf.

Updated 1/20/06