Here’s what we already know: The demographics of the workforce are a train coming down the track. While we are currently experiencing a 9.5% national unemployment rate, the burden is disproportionately born by younger workers (more than 50% of non-students are unemployed – referred to as the Dead End Kids).
Here’s what many don’t know: The AARP (Pdf) predicts that by 2015, there will be more jobs than trained employees – indeed, the group expects a gap of 35 million jobs. It is becoming more and more likely that those who entered the workforce in the 1970’s will not become “snow birds” anytime soon. Are they making it more difficult for younger workers to enter the workforce? More results from the AARP’s 2005 report, “American’s Aging Workforce:”
- By 2015, 20% of the workforce will be age 55 and older
- The highest growth rate in the workforce will be among those 55-64 (an increase of 51%)
- Concurrently, there will be a decrease in the population of workers age 35-44 (a loss of 7%)
- Today, most middle and senior managers are Baby Boomers, age 42-60. 40% of this cohort hold college degrees; unlike their Traditionalist predecessors, who were more likely to perform physically demanding work, most of these collegiate Boomers should be able to continue in professional, technical, and managerial roles well beyond retirement age.
The AARP’s data focused on the demographic trends of the workforce: in September 2009, the Pew Research Center published a report on the impact of the recession on the graying of our workforce. There are many interesting findings; for now, let’s look at the impact of the current recession on those who had planned to retire at age 62:
- 40% who are working past the median retirement age of 62 have delayed their retirement because of the recession
- 63% of those who were expecting to retire (ages 50 – 61) believe they may need to delay retirement because of the recession; 18% more women than men expressed this concern about their financial security in retirement.
The Pew Research Center analyzed U.S. Census Bureau survey data and conducted their own survey of 1,815 people ages 16 + between July 20 – August 2, 2009. While the labor force participation rate for older workers is influenced by the current recession, this same survey revealed that 54% of workers ages 65+ state that the main reason they work is that they want to. As you might expect, the younger and middle aged aged workers are more likely to express a need to work for pocketbook considerations (49%).
So what can be done to balance the needs of our economy with the availability of workers across generational lines?
- Re-introduce “job sharing,” a concept that was popular in the early 1980’s. Maybe some inter-generational job sharing?
- Make it possible for older workers to take “internships.” As with college students, these could be offered with minimal pay, but would be designed to meet the desire of seniors “to feel useful, ” grow professionally, and supplement their retirement income.
- Create a cadre of older and younger people who could be national civilian volunteers or employees of the military. This source of manpower could complement the efforts of our military; perhaps the right people could offer additional training to prepare soldiers for effective nation-building and a successful return to civilian life.
What do you think? Look for an upcoming Frontline show and get back to us with your comments…
{ 1 trackback }
{ 0 comments… add one now }