One static component of my constantly evolving Lending Club investment strategy is identifying borrowers who have a fairly long history of employment. In other words, that means:
As the above graphic shows, there seems to be something to my original hypothesis:
The Labor Department’s household survey in December found that 28.2 million people over 55 years of age had jobs, an increase of 7.6 percent from three years earlier, when the recession was beginning.
By contrast, there were fewer jobs held by people in all age groups under 55, as can be seen in the accompanying charts. Over all, the number of people working was down by 4.9 percent.
As a P2P lending investor, this lends additional evidence that the older a borrower might be (within reason of course), the more likely they’re going to hang on to their job during a downturn in the economy. And why not? If you’ve worked 20-30 years in a chosen field, chances are you’re more experienced, more seasoned to the tasks at hand, etc., and senior management (of whom the 55+ is largely composed), the more likely you’ll be able to retain one or more sources of income.
New York Times
Older Workers Are Keeping a Tighter Grip on Jobs