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Employment

Employment at Older Ages and the Changing Nature of Work

Research Report

November 2007


Changes over time in the nature of work have important implications for the employment prospects of older people. The shift from a manufacturing-dominated economy to one dominated by services has reduced physical work demands, potentially increasing the chances that older workers will delay retirement. However, increases over time in work intensity may push some people into early retirement. In this AARP Public Policy Institute Issue Paper, Richard Johnson, Gordon Mermin, and Matthew Resseger of the Urban Institute examine the changes over time in job demands and the impact of these changes on the employability of older workers.

The study used detailed occupational characteristics from the Occupational Information Network (O*NET) to examine job demands. It linked this information to individual workers in the March 1971 and March 2006 Current Population Surveys.

Highlights of the study include:

  • Over the last 35 years, the share of jobs requiring high cognitive ability and strong interpersonal skills grew from about one-quarter to more than one-third, an increase of about 35 percent.
  • The share of workers in jobs that are high stress or involve difficult interpersonal dealings more than doubled between 1971 and 2006.
  • The latest figures (2006) show that almost 35 percent of workers are in occupations requiring high cognitive ability, with nearly 70 percent in occupations requiring some cognitive ability. Computer use is very or extremely important in about 43 percent of jobs.

(49 pages)

Pub ID: 2007-20