Working a job is what most people do to make money. In the United States, the labor participation rate is over 60%. This is the percentage of people over 16 years of age who are working. About a third of teens have jobs, and the average retirement age in the United States is 65 years old for men and 62 years old for women. Most people who are not participating in the labor force are retired, disabled, or still in high school. The unemployment rate also varies but let’s say it’s 5%. That means of the people who are able to work and looking for a job in the last 4 weeks, 5% haven’t found a job. In the United States, the top 1% or 2% of income earners earn enough money each year to comfortably retire (if they change their lifestyle to a middle class lifestyle) and yet many of them still work to earn money — think of doctors, lawyers, executives, whose primary source of income is from their job even if they do have other sources. Finally, more than half of people who are in the labor force are working for someone else. Together, these numbers mean that most people who want to work and are actively looking do find some work, and that working for an employer is the way most people earn money.
Advantages of employment:
- Most people are able to find employment (if the unemployment rate is 5%, that means 95% of people age 16 or more who looked for a job recently found a job)
- Jobs can pay anywhere from minimum wage to millions of dollars a year; in 2024 the 50th percentile is about $50,000; the 80th percentile is about $100,000; the 99th percentile is about $400,000
- Having some knowledge or skill can help with finding a job that pays more, but if that’s hard to find then it’s usually possible to find an entry-level job in a different field and still be able to earn money
- Some jobs can lead to more knowledge, skill, and experience, which then lead to jobs that pay more money; in general this concept is called a career
Disadvantages of employment:
- Some jobs don’t lead to any career advancement; these are called dead-end jobs; additional work or study is needed outside of the job to get ready for and then find better opportunities
- The employer is trading money for your time and skill, so generally you need to show up as scheduled, ask permission to leave work early or take an extended break for any reason; so you have less flexibility in your schedule
- In many cases, employers may end the employment contract for a variety of reasons, and an abrupt termination causes a lot of stress as you still have to pay bills and find a new job
- Some employers consider any idea or creative work that you do that’s even remotely associated to their line of business to belong to them; you have to quit the job before you can pursue your own business to avoid any intellectual property issues with employers
Compass
Return to wealth plans or financial security plan.