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What the Unemployment Rate Means for Older Adults
The rate for older workers increased in July as the nation lost jobs overall
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The unemployment rate for workers age 55 and older rose to 3.1 percent for July 2026, after measuring 2.8 percent the previous month, according to a new report from the U.S. Bureau of Labor Statistics. The unemployment rate for all age groups dropped slightly to 4.1 percent in July, down from 4.2 percent in June, even though the nation lost 23,000 jobs.
In late spring, there was a spike in hiring in the hospitality industry as hotels, restaurants, and other businesses prepared for tourism tied to the World Cup soccer tournament and celebrations marking the nation’s 250th birthday. Those jobs are now being cut, with the leisure and hospitality industries losing 40,000 jobs in July. That spring surge “now looks like an anomaly,” says Appcast Chief Economist Andrew Flowers.
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Hiring in July was strongest in the health care and construction industries, suggesting some employment opportunities for older job seekers.
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What is the unemployment rate for older workers?
While the overall U.S. unemployment rate draws headlines each month, the BLS also breaks down jobs data demographically, for example, by sex, race and age. Most of the time, the unemployment rates for older adults are lower than the overall figures. For May, those rates were:
- Ages 45 to 54 and older: 3.1 percent
- Age 55 and older: 3.1 percent
- Men, ages 45 to 54: 3.2 percent
- Men, ages 55 and older: 2.9 percent
- Women, ages 45 to 54: 3.0 percent
- Women, ages 55 and older: 3.3 percent
The unemployment rate for older adults tends to be lower than the overall rate for a variety of complex, often intertwined, reasons. Some workers age 50 and older have experience and knowledge that makes them harder for employers to replace. Many have professional networks and achievements that enable them to transition quickly from one job to another. And other workers stick with employers for health insurance and retirement savings as they approach the next phase of their lives. Age discrimination in hiring also makes some older workers reluctant to switch jobs.
How is the unemployment rate determined?
Keeping track of how many people need new jobs each month is vital to helping both job seekers and businesses understand their circumstances. For that reason, the BLS sends out two sets of surveys each month. The first survey covers about 60,000 households and asks about the employment status of everyone age 16 and older in each household. The other survey covers roughly 119,000 businesses and asks about the employment, hours and earnings of everyone on the nonfarm payroll.
The two surveys provide a snapshot of how many people are employed or seeking work, but that picture is not complete. For example, if someone did not apply for jobs during the four weeks covered by the survey, the BLS does not count them as unemployed. That means many older workers who pause their job searches for personal reasons or because they aren’t getting responses from employers are often overlooked by the report.
What is long-term unemployment?
When the labor market is sluggish, it can sometimes take months of applying before a job seeker lands a position. Those who have been looking for a job for more than 27 weeks fall into a category the BLS defines as long-term unemployed.
The average duration of unemployment for all age groups reported in May was 26.8 weeks. Among adults, the 20-to-24-year-old age group usually has the shortest period of unemployment (21.5 weeks in July). But last month, some older adults got hired faster:
- Ages 45 to 54: 19.7 weeks unemployed
- Ages 55 to 64: 33.1 weeks unemployed
- Ages 65 and older: 36.4 weeks unemployed
Looking for a job can be difficult at any age. For people age 50 and older, that process can include additional needs, such as flexibility for dealing with medical issues and caregiving responsibilities. And some employers are hesitant to consider older applicants because they think they might retire soon. Through its Employer Alliance, AARP is working with businesses to help them better understand the value of older workers. AARP is also collaborating with Indeed to provide job-search resources to people 50-plus.
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