About the Report

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As the Baby Boomer generation moves toward retirement age, a chief concern facing U.S. policymakers is how to accommodate this demographic shift. For the U.S. Department of Labor (DOL) and other agencies, the workforce dynamics of older workers is of particular concern.

The exact definition of older workers varies by source and purpose. For instance, those ages 40 and older are protected from age discrimination by the Age Discrimination in Employment Act of 1967 (ADEA) and by the Older Workers Benefit Protection Act of 1990. In contrast, the Older Americans Act of 1965 defines them as individuals 55 and older. Some analysts describe older workers as 50 and older, and others as 55 and older. In the report, researchers define older workers as 50 and older and assess six sub-groups (50-56, 57-61, 62-66, 67-71, and 72-76, and 77 and over) within that population.

Older workers differ from younger workers in that they face the challenge of supporting themselves in retirement, a prospect made only more difficult by the Great Recession of 2008- 2009 (GR). This report shows that older worker labor market behavior and fortunes were markedly different even five years after the GR ended.

The researchers use nationally representative data to illustrate trends in labor force participation, retirement, and earnings among older workers pre-, during, and post-GR and provide potential explanations for these trends based on the literature.

Research Questions

• What are the demographic characteristics of older workers? Do these characteristics differ by age?
• What are the trends in the employment status, earnings, duration of unemployment, and income of older workers pre-, during, and post-GR? Do the trends vary by gender?
• How did the older workers’ labor market outcomes differ compared to those of workers ages 40-49, post-GR/short or longer-term? If so, how?
• How did the likelihood of retirement change among older workers after the GR compared to before the GR?

Key Takeaways

• Educational attainment is lowest for the oldest cohorts of older adults.
• For adults over age 61, educational attainment differs by gender.
• Adults report a poorer health status as they age, which may influence their willingness or ability to work.
• Marriage rates decline among the older age groups as the share of widowed individuals increases.
• Disabled older adults and those with medical limitations are a particularly vulnerable group that may require more intensive job search assistance.
• As they age, older adults face deteriorating health and, due to policy changes such as those that raise the retirement age, may be adversely affected if commensurate financial protections are unavailable (Johnson, 2011).
• Even five years post-GR, adults ages 40-49 are working less than pre-GR, but adults ages 62 and older are working more – marked differences in labor market outcomes that are statistically significant.
• Average durations of unemployment remain higher than pre-GR levels for both workers ages 40-49 and older workers.
• There are clear differences in post-GR income levels by age cohort within the overall group of older workers.
• Compared to workers ages 40-49, older workers worked relatively more hours per week post-GR (both short and longer-term) – increases that are statistically significant for most age groups.
• Post-GR/longer-term, male workers ages 72-76 worked about two hours more per week, and older female workers in the same age group about three hours more per week, compared to their counterparts ages 40-49.
• Some cohorts of older workers experienced statistically significant increases in their hourly earnings post-GR compared to workers ages 40-49.
• The decrease in the likelihood of retirement is more pronounced for men than for women.
• Men and women ages 62-66 experienced the greatest drop in their likelihood of retiring both post-GR/short- and longer-term.
• For men and women older than 66, Social Security and other retirement income is higher post-GR/longer-term compared to pre-GR – a trend that is stronger for women than for men.

Citation

Nanda, N., Chen, Y., Patterson, L., Smith, J., Moore, J. (2016). IMPAQ International. Labor Market and DOL-Funded Employment Assistance for Older Workers: Statistical Analysis Report. Chief Evaluation Office, U.S. Department of Labor.

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The Department of Labor’s (DOL) Chief Evaluation Office (CEO) sponsors independent evaluations and research, primarily conducted by external, third-party contractors in accordance with the Department of Labor Evaluation Policy and CEO’s research development process.