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The term, older workers, generally refers to individuals aged 50 and above who still actively participate in the workforce. They may include individuals who are approaching retirement age, retirees who have chosen to re-enter the workforce, or those who have continued to work past the traditional retirement age for various reasons.
From 1970 until the end of the 20th century, older workers who the U.S. Bureau of Labor Statistics defines as those ages 55 and older, made up the smallest segment of the labor force. According to the Pew Research Center, 19% of Americans 65+ were employed in 2023. This is nearly double the percentage working 35 years ago.
Dynamic shifts in the nation’s economy, shifting perceptions of retirement, increased workplace flexibility, aging of the "baby boom" generation, and aging of an increasing number of Americans beyond 100 years of age are contributing to people working longer. With the number of Americans ages 100+ projected to more than quadruple over the next three decades (U.S. Census Bureau), many Americans are expected to extend the length of their employment in the workforce. According to the World Employment and Social Outlook–Trends 2015, senior economist Ekkehard Ernst suggests that by 2030, the number of older workers in the labor force will likely increase to more than 18% of the total labor force. The Center for Workforce Inclusion projects that by 2028, workers aged 55 or older will represent more than 25% of the U.S. labor force, yet only 4% of firms have committed to programs that help integrate older workers into their talent pool.
While older workers increase in number, their earning power has also grown. In 2022, the typical worker 65+ earned $22 per hour, up from $13 in 1987. By comparison, earnings for younger workers has not grown as much. As a result, the wage gap between older workers and those ages 25 to 64 has narrowed significantly.
In 2023, older workers accounted for 7% of all wages/salaries paid by U.S. employers—more than triple the share in 1987 (2%). Older workers also differ from older workers of the past in many ways:
In the rapidly changing learn-and-work ecosystem, postsecondary education is increasingly important for older job seekers' reemployment. They often face challenges in accessing and completing education and training, sometimes due to their greater likelihood of having acquired age-related disabilities. Older workers seeking postsecondary education typically participate in short-term training programs (noncredit and credit), often provided by community and technical colleges and third-party providers including employers.
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Overall, research indicates that retaining older workers may be beneficial for individuals, organizations, and the economy as a whole. Policies and practices that promote age diversity and support older workers in the workforce can yield positive returns on investment in terms of experience and expertise, productivity, cost savings, diversity and inclusion, customer satisfaction, reduced skills shortages, and positive organizational culture.
Age restrictions in the workforce vary by country and jurisdiction. Their legality depends on the specific laws and regulations in place. Imposing age restrictions on employment is generally discouraged and may be considered discriminatory in many contexts.
In the U.S., age discrimination in employment is prohibited by the Age Discrimination in Employment Act (ADEA) of 1967. This law prohibits discrimination against individuals 40 years of age or older in hiring, promotion, discharge, compensation, or terms, conditions, or privileges of employment. There are limited exceptions to this law, such as when age is a bona fide occupational qualification (BFOQ) reasonably necessary to the normal operation of a particular business. In some industries, such as aviation and public safety, there may be age restrictions for certain positions based on safety concerns or specific-job requirements. However, these restrictions are typically justified and must adhere to legal standards.
The number of industry sectors that impose age restrictions for their workforce vary, but it's generally uncommon to see widespread age restrictions across industries. Generally, employers are encouraged to focus on qualifications, skills, and abilities rather than age when making employment decisions to ensure fairness and compliance with anti-discrimination laws.
AARP Foundation's Back to Work 50+
AARP’s Workforce50 (formerly called Senior Job Bank) - http://www.workforce50.com/
AARP’s The Work channel- https://www.aarp.org/work/
Age Discrimination in Employment Act of 1975
Fry, R., and Braga, D. (December 2023). Older Workers Are Growing in Number and Earning Higher Wages. Pew Research Center. https://www.pewresearch.org/social-trends/2023/12/14/older-workers-are-growing-in-number-and-earning-higher-wages/
https://www.dol.gov/agencies/eta/Seniors/
Older Workers: An exploration of the Benefits, Barriers, and Adaptations for Older People in the Workforce. 2009. A study from the National Institutes of Health (Australia).
Older Workers | U.S. Department of Labor (dol.gov)
Pew Research Center. (October 2016). The State of American Jobs. https://www.pewresearch.org/topic/generations-age/age/older-adults-aging/
Pew Research Center. (January 2024). U.S. centenarians projected to quadruple in number by 2054 | Pew Research Center. https://www.pewresearch.org/short-reads/2024/01/09/us-centenarian-population-is-projected-to-quadruple-over-the-next-30-years/sr_24-01-09_centenarians_1/
The U.S. Department of Labor Employment and Training Administration’s-funded Senior Community Service Employment Program (SCSEP).
U.S. Department of Labor (DOL) Employment & Training Administration's Older Worker Initiative
World Employment and Social Outlook - Trends 2015. International Labour Organization. https://www.ilo.org/global/research/global-reports/weso/2015/lang--en/index.htm
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