Covid-19 Pushed Many Americans to Retire. The Economy Needs Them Back.

The Covid-19 pandemic has boosted retirements among baby boomers, further straining the tight labor supply and leaving a hole for employers to fill.

Older workers who could least afford to retire early—those with lower incomes and less education—have been more likely to leave the workforce during the pandemic, researchers have found. The question is whether their retreat is temporary or permanent. Some retired because of Covid-19 fears, and others after failing to find suitable work.

The rising value of stocks, homes and other assets also has prompted a group of more affluent boomers to...