Employment at Older Ages

The recession has increased joblessness among older Americans. These graphs and tables report unemployment rates and how they have varied by age, sex, race, and education since 2007.

Unemployment rates for older workers reached record levels in 2009, partly because fewer workers eligible for early retirement benefits are dropping out of the labor force. Growing concerns about the adequacy of retirement savings and whether retirees will have enough money to live comfortably in later life appear to have discouraged early retirement. Instead, more older workers are now remaining in the labor force and searching for work after they lose their jobs. The need for older adults to keep working raises the imperative for new policies that help address the special challenges that older job seekers face.

As one of the fastest growing segments of the older population, Hispanics could become an important target for employers trying to attract and retain older workers. Older Hispanics participate in the labor force at relatively high rates and generally appear to be at least as healthy as non-Hispanic whites and healthier than blacks. Many, however, face substantial challenges in the workplace. They earn low wages and few benefits, and tend to work in physically demanding jobs that are often difficult to maintain into later life. Various policy reforms could boost older Hispanics' employment and earnings. Published by AARP (see link below.)

Career change is common at older ages. This report shows that 27 percent of workers employed full time at age 51 to 55 change occupations by age 65 to 69. More than one-third of older job leavers separate because of job layoffs or health problems, including nearly half of those who did not complete high school. Workers who change careers typically move into jobs that pay less than their previous jobs and are less likely to offer pension and health benefits. However, new careers tend to offer more flexible employment arrangements, less stressful working conditions, and fewer managerial responsibilities.

The unemployment rate for adults age 65 and older reached 6.8 percent in February 2009, the highest level recorded since the federal government began computing reliable unemployment rates in 1948. Senior unemployment rates were particularly high among African Americans, Hispanics, those who did not complete high school, and those in the construction, manufacturing, and leisure and hospitality industries.