Friday, November 25, 2016

Our aging workforce

From the US Department of Labor:

It’s a fact: our workforce is aging. By 2024, nearly 1 in 4 people in the labor force are projected to be age 55 or over.

This is a big change from 1994, when people ages 55 and older represented only 11.9 percent of the labor force – a share smaller than those held by other age groups: 16-24, 25-34, 35-44 and 45-54. But by 2024, their projected share will be the largest among these age groups.

There are two reasons for this trend. The first is an aging population: baby boomers − those born from 1946 to 1964 − are moving into older age groups. By 2024, the youngest will be 59 years old.

The second reason is an increasing labor force participation rate among older workers. Research shows many older people are remaining in the labor force longer than those from previous generations. According to one study, about 60 percent of older workers with a “career job” retire and move to a “bridge job”; that is, a short-term and/or part-time position. Another study found that about half of retirees followed nontraditional paths of retirement in that they did not exit the labor force permanently.

The big question is why: Why are older workers choosing to remain in the labor force?

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