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The Future of the
Older Worker
in America


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The Future of the Older Worker in America


As the baby boomers age they face a future that is challenging in several ways. The rise of ageism as a recognized form of discrimination will certainly confront them. The first of the baby boomers are now crossing 55 and 56 years of age. This is typically the time when most cases of age discrimination occur. This fact would indicate they would not want to stay in the work force. However, at the same time due to emerging realities baby boomers will find that their skills will be in continued demand for the next 30 years. Such factors as the lack of qualified workers, the fact that the number of persons younger than 45, in America is declining, and the number of immigrants, legal or illegal cannot fill the need, plus the increasing life span of Americans means that employers will need their services for the foreseeable future and they will be available. The question is how prepared are American employers to come to grip with these trends?

According to the United States Department of Labor the number of persons at age 55 or older working in the United States has grown to 32.4 million persons. However, as a percentage the people' age 55 or older in the work force is only 2.9%. This is the lowest percentage since recording began in 1950. For example in 1950 there were 11.3 million persons age 55 or older working and they represented 4.9% of the work force. While the number of persons age 55 or older in the work force has increased steadily since 1950 their percentage has dropped steadily. By the year 2010 America's native work force will begin to dwindle, if the baby boomers begin to retire en masse. Again, the question is how prepared are American employers to come to grip with these trends?

Again, according to the DOL companies are not doing a good job of courting older workers. In fact, in spite of efforts on the part of various government agencies and professionals in the recruiting industry, employers routinely discount the value of older employees and will often opt for younger less qualified persons to fill vacancies. One study done by William M. Mercer, (Capitalizing On an Aging Work Force), company indicates that employers are still hiring as though they will always be able to find qualified younger persons to fill important positions. In the face of the demographics described above it is interesting to speculate just how much longer employers will be able to continue this practice.

Not all employers are oblivious to these demographic changes. For example General Motors has quietly dropped its "early retirement program" and is now actively encouraging its older employees to stay on, to postpone retirement. Unfortunately most employers are not as active in this area as General Motors is.

What can employers do to hold on to their older workers? Below we offer a few suggestions that may help.

1. Start planning right now. What percentage of your current work force will be 55 years of age or older in ten years? What are their plans for retirement? Are they planning on retiring as soon as they are able to do so? Would they like to continue working? Are there any changes that the employer can make that will encourage older employees to stay on past customary retirement age? Are you as an employer willing to make such changes? The time to start is now.

2. Take into consideration the fact that the increased life spans of Americans will probably lead older workers to be concerned that if they retire at 65 their retirement income may run out. This fact should be discussed with older workers so that they recognize these facts. 3. According to a University of Michigan study, most workers age 50 or older indicated they would like to postpone retirement but cut the hours they are working, or move to jobs with fewer responsibilities. At the same time they report that they are having a hard time convincing their bosses that this is a good idea. In light of the demographics listed above, it would be a very good idea for employers to give these ideas serious consideration.

4. Other studies have found that once employees retire it is much more difficult to get then to come back to work and rejoin the rat race. The above indicates it would be a good idea to keep your older workers working by postponing their retirement. This may mean that you will have to accommodate some of their requests, but in the long run that will be easier than trying to lure them back to work once they leave.

5. The good news is that according to the AARP 80% of baby boomers plan to work past customary retirement age. The worrisome news is will employers be ready and willing to accommodate their needs as they age?

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