An impressive 93% of the growth in the US labor force from 2006 to 2016 will be among workers ages 55+, according to a report from Pew Research Center’s Social & Demographic Trends Project, which reported that older adults are overwhelmingly staying in the labor force longer, while younger adults are delaying their entry into the working world.
Both trends, which took shape about two decades ago, have intensified during the current recession and are expected to continue after the economy recovers, according to Pew.
Demographic, Economic, Attitudinal Factors Play Role
Though current economic conditions and an aging Baby Boom generation are playing a big role in the graying of America’s already-gray workforce, Pew’s nationwide survey found that the growing desire of an aging but healthy population to stay active well into the later years also is a major contributing factor.
Key study findings about worker motivations:
Economy Influences Decisions
According to the Pew survey, nearly four-in-ten adults who are working past the median retirement age of 62 say they have delayed their retirement because of the recession. Among workers ages 50-61, 63% say they might have to push back their expected retirement date because of current economic conditions.
Pew’s survey results are consistent with a related Pew Research Center analysis of US Census Bureau data that shows the labor-force participation rate of older adults – which declined from 1950 until the middle of the 1980s – has been rising ever since. This trend has accelerated during this decade, especially in the current recession, Pew said.
At the other end of the age spectrum, Census data show that in the current decade, a rising share of Americans ages 16- 24 are in school and a declining share are in the labor force – 57% today vs. 66% in 2000.
Less young people are entering the workforce for two major reasons, said Pew. First, about three-quarters (73%) of the public feels that youth need a college education to get ahead in life, up from about half (49%) in 1978. Second, younger adults (like all adults) are being hit hard by the recession, and some may have become discouraged and dropped out of the labor market.
Overall, more than four in 10 nonworking people ages 16-24 say they’ve looked for work but can’t find anything, Pew said.
Women’s Participation Flattens Out
Though women’s participation in the labor force had been growing steadily for the past five decades, Pew’s analysis revealed that it has now flattered out. At 59%, it is now slightly below the 60% peak it reached in 2000 and about 13 percentage points below the current rate for men.
As for men, their labor force participation rate has declined in this decade – just as it has every decade since the Bureau of Labor Statistics began keeping such records in 1948. As of June 2009, it stood at 72%, the lowest level in modern history. The current economic downturn has hit men harder than women, with men suffering about two-thirds of all recession-related job losses. As often happens in a recession, a portion of these newly unemployed workers have become discouraged about finding jobs and have dropped out of the labor force altogether, Pew reported.
The official unemployment rate in the US now stands at 9.7%, according to the US Bureau of Labor Statistics, which reports that a significant portion of working-age US adults are unemployed or only employed part-time. These numbers do not include the ranks of those who have exhausted their unemployment benefits and want a job, but who have become discouraged and have stopped looking for work.
Additional survey findings:
About the survey: Pew Research Center’s report on long-term trends in the US workforce is based upon analysis of survey data from the US Census Bureau as well as on Pew Research’s own survey of a representative national sample of 1,815 people ages 16+ conducted from July 20 – Aug. 2, 2009.
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