The Aging American Workforce: Get Ready
By: Source: AARP.org Date Posted: 2006-01-30 17:07:28.433002-05:00
A major change is underway in the American workforce. It is growing older. This aging of the workforce is due to two significant demographic shifts that are reshaping the composition of the U.S. labor force:
- The growing number of workers age 55 and over, and
- The smaller pool of younger workers available to replace these older employees.
At the same time, work plans and expectations about retirement are also changing.
Here are the basic facts about these changes, and how employers can respond.
How many older workers are there?
- In 2000, 13 percent of the U.S. workforce was 55 and older.
- The U.S. Department of Labor ' s Bureau of Labor Statistics reports that this figure will likely increase to 17 percent by 2010.
- By the year 2050, 19 percent of workers will be 55 and over.
What do mid-life and older workers want?
- Mid-life and older workers want to continue to work.
- They want viable work options later in life.
- Nearly 7 out of 10 workers age 45-74 tell AARP that they plan to work in some capacity in retirement.
- Financial need is one reason that older workers will continue to work.
- Many also like their work and enjoy being productive and useful.
What about younger workers?
- The last baby boomers were born in 1964. After 1964, there is a generational dip.
- This means far fewer workers in the future - with more jobs than workers to fill them.
- Critical shortages of qualified workers will occur.
- Shortages will most severely affect the dominant and growing service sectors of the economy.
- The U.S. Government Accounting Office warns that shortages of skilled workers could have harmful effects on productivity and economic growth.
How to prepare for the coming demographic challenge
Most employers are not yet facing labor shortages. Few models exist for meeting the coming shortages by using the potential of older workers. But the labor shortages of tomorrow pose critical questions today to both employers and public policy makers.
What must employers do to recruit, retain, train, and address the needs of older workers? Their sheer numbers and experience make these workers an invaluable commodity in the workplace. Valuing these workers will enable employers to remain competitive.
AARP's Best Employers for Workers Over 50 program identifies employers of today whose best practices comprise roadmaps for the workplaces of tomorrow.
These employers are helping to answer the questions about what all employers must do. The coming "new demographics" of the workplace will not be a threat to employers or to our nation's economic productivity and growth. Instead, forward-looking employers can foster employment settings that work smoothly and profitably for both themselves and their workers.
Additional Related Links
AARP recognized these companies for their best practices in managing 50+ workers. Learn their winning strategies>>
preview