By Gayl Mileszko
Market Commentary
Working 9-to-5 to 95
There were 7.37 million jobs open in the U.S. as of June 30, but 58% of those who graduated from college in 2024 are still looking to be hired. This year’s grads are even more frustrated. Most of the open spots are in retail trade. Many other job offerings are suited to mid-level rather than entry-level positions. Joblessness among the college educated now exceeds the overall unemployment rate. It is therefore not surprising that nearly one-third of those between 18 and 34 now live at home with their parents. And it is no wonder that one in four Gen Z workers now reportedly regret attending college altogether. So, who, besides robots, are taking their jobs?
No More Gold Watches
For decades, it was commonly accepted that the average worker would retire at age 65. Older Americans were expected to be feted with a party and given a gold watch for their devoted service. Their departures opened up positions for those younger to move up the ranks. But a hundred years ago the average life expectancy was 61, now it is about 78. In 2025, more Americans are turning 65 than in any past year — 4 million. For the next three years, we will see a current rate of 11,200 per day. Eleven million now remain on the job. That equates to nearly one in five Americans over 65 and that number is growing. The percentage of those working over 65 has risen by 33.2% since 2015. Contrast that with the 15.8% increase in the number of workers in the 35-44 age bracket during the same period. Given the 2008 recession, the pandemic, and inflation, no one should be surprised.
Take This Job and Love It
Other explanations are fairly easy to come by. Some seniors cite preference – a desire to continue the work they consider fulfilling with colleagues they enjoy. Americans are healthier and living longer than ever, so 65 may indeed be the new 45. There are plenty who have no interest in fishing for the next 20+ years but want to continue to contribute skills and offer experience-based insights. President Trump’s cabinet, for instance, is comprised of four over the age of 65, and he himself is 79. Technology now enables a significant percentage to work from home and some employers find greater value in their senior work ethic, loyalty, and productivity. But many, many more seniors cite necessity as the reason for remaining on the job. Having inadequate retirement income is a prime reason for remaining in the workforce.
Living Longer But Not Always Better
Census data show that 11.3 percent of older Americans live in poverty. An additional 8.2 percent have low incomes ranging from 100 percent to 149 percent of the poverty level. In an August 2025 report, Pew Charitable Trusts observed that about 39 percent of older households (defined as those with a head of household age 65 or older) receive income from work, either part-time or full-time. This has helped to boost the median income for older households to $56,000. But not all seniors can work. The National Council on Aging reports that a significant percentage have multiple chronic conditions such heart disease, diabetes, arthritis, and dementia. Nationwide, the average retirement income is about $34,100, with $25,500 of that amount coming from Social Security. Given inflation, the rising costs of insurance, property taxes, and medical care, among others, that only income goes so far. Student loan debt also adds to the pressure. The Consumer Financial Protection Bureau estimated that 3.6 million over the age of 60 still have federal student loan debt outstanding; incredibly, more than 30,000 over the age of 86 still owe more than $655 million.
Lessons for All Ages
The data and trends we see in senior employment and the lack of general affordability in senior housing and care, have not yet raised alarms in the general population, the Congress, or the media. But the U.S. is woefully behind on preparing the facilities and services that will be needed for our rapidly aging citizenry. Senior living developers and operators need to prepare to accommodate a new wave of residents who may be working throughout a good percentage of their stay—either because they want to or need to work to afford the rising fees. There is also clearly a growing need for curricula at the elementary, secondary and higher levels to help prepare young Americans for jobs of the future and a work life that may well extend out 50 or 60 or more years and include many years of caring for aging parents.
Investing in Senior Living
Investors are slowly realizing the incredible opportunities in the senior living space. In the first half of this year, senior housing as a whole posted returns of 4% according to the National Council of Real Estate Investment Fiduciaries (NCREIF). As a property type over the past 10-, 15- and 20-year periods, senior living has performed extremely well, lagging only behind the industrial and self-storage sectors. In the bond market this month, three senior living deals were sold, including our $80 million non- rated California Public Finance Authority sale for Sunrise of Long Beach Which had a 2065 final maturity that we priced with a coupon of 6.625% to yield 6.85%.
Working Non-Stop
This week is yet another one in a highly unusual summer that has not been quiet in the US Capitol, or on Wall Street and Main Street. A steady stream of major announcements from the White House dominates the news cycle as it has all year long. We are seeing unprecedented actions on tariffs, multi-party peace negotiations, pressures on the central bank, and skepticism about economic data. It was once a big deal to have a head of state come to visit the U.S. In the past week, we had nine European leaders arrive for peace talks, including eight at one time. If you are a trader or investor that has not taken a day off this summer, you are not alone. There simply has been no break in the action.
Labor Markets in Transition
The week is not over. Financial markets will hang onto every word uttered from Jackson Hole where central bankers, policymakers, scholars, economists, investors, and the media gather. This year the symposium meets to tackle “Labor Markets in Transition.” Jay Powell’s keynote address to the symposium on Friday will be his last as Chairman since his second term ends next May. Crypto industry advocates are in the same town meeting for the Wyoming Blockchain Summit. We also have the latest economic data from Washington to scour: jobless claims, leading indicators, existing home sales. There are Treasury auctions, Fed speakers, and corporate earnings reports to digest as well. Investors from around the world, futures traders, and prediction market bettors are among those anxiously awaiting the next jobs and inflation reports — and the outcome of the Federal Open Market Committee meeting next month. Markets are generally counting on two rate cuts by the end of the year, but the CME Group now places the probability at 81% for September and 47% for December.
All Work and No Play
After weeks of blockbuster sales, the municipal and corporate bond markets continue on their record-setting pace. Investment grade corporate sales are likely to hit $100 billion this month. Municipal issuance exceeds $366 billion in 2025, more than the entire calendar year of 2018. Last week, most of the higher yielding deals in the market priced at a discount. Basis Texas Charter Schools brought a $174.6 million Ba2 rated deal through the Arlington Higher Education Finance Corporation structured with a 40-year final maturity priced with a 5.875% coupon to yield 6.00%. Mater Academy of Nevada had a $18.3 million BB rated issue that came through the Public Finance Authority structured with 2060 term bonds priced at 6.125% to yield 6.21%. And the South Carolina Jobs Economic Development Authority brought a $33.9 million non-rated financing for Mountain View Preparatory that included a 2060 maturity priced at 7.125% to yield 7.25%. The private Grace Christian Academy had a $123.8 million BBB-minus rated issue that came through the National Finance Authority; the 40-year maturity priced with a 6.00% coupon to yield 6.25%. Among senior living issues, the Florida Local Government Finance Commission had a $332 million non-rated bond sale for Fleet Landing at Nocatee that featured 2065 term bonds priced at 6.875% to yield 6.97%. And the Indiana Finance Authority sold $45.8 million of BBB-minus rated bonds for Greenwood Village South; the 2060 maturity priced at 5.75% to yield 6.00%.
Works in Progress
This week will likely see less than $10 billion in municipal bond volume, and the 30-day visible supply drops to $12.5 billion ahead of Labor Day. In the senior living sector, Gingercare has a $96 million non-rated financing coming through the Massachusetts Development Finance Agency and the Rhode Island Health and Educational Building Corporation. Florida’s Capital Trust Authority is bringing a $143.5 million non-rated issue for the Grand Villa Portfolio. Salem Home in Hillsboro, Kansas has a $2.6 million non-rated deal. Green Cay Life Plan Village plans a $4 million revenue anticipation note sale through the Palm Beach County Health Authority. And Perkins County, Nebraska will issue $4.4 million of non-rated bonds for Western Sky Community Care Center. Among the charter schools coming to market is a $10.7 million BB rated deal for Axis International Academy coming through the Colorado Educational and Cultural Facilities Authority. This Authority also has a $25 million Aa3 rated sale for Addenbrooke Classical Academy. And the Utah Charter School Finance Authority is bringing a $35 million nonrated deal for Salt Lake Academy.
We invite you to reach out to your H.J. Sims representative in these waning weeks of summer to discuss some of the great value and yields currently available in the bond markets, and how we can help you craft the retirement or “entirement ®” that you want.