August 2, 2018
Boomers’ Employment Options Improving
It’s not difficult to find baby boomers out in the job market who will tell you that they have fewer employment options than they used to.
The turning point occurs around age 55. According to a recent study, only 4 percent of people in their early 50s who find a new job are moving into what the researchers label as “old-person jobs” – that is, jobs in occupations that disproportionately employ older workers. The share in these jobs increases sharply, to 13 percent, by the time they reach their late 50s and to 22 percent in their early 60s.
Given the more difficult job market, this cloud has a silver lining. Older workers are actually better off today than they were in the late 1990s and have experienced a “broadening of occupational opportunities,” concluded researchers Matt Rutledge, Steve Sass, and Jorge Ramos-Mercado of the Center for Retirement Research, which sponsors this blog.
Specifically, the situation has improved for two of the three age groups they analyzed. The share of new hires who are in their early 50s and end up in old-person jobs has fallen by more than two-thirds since the late 1990s. For people in their early 60s, it has fallen by nearly one-fifth.
Various possible reasons for the improvement include an aging labor force – managers included. As managers age, they may become more amenable to hiring older workers.
The study also found that things have improved for both educational groups: those who have spent at least some time in college and those who never attended college.
College-educated women between 50 and 64 have made the most progress: 8 percent were in old-person jobs in the early 1990s but only 3 percent are today. One reason could be the particularly large increase in the number of women who’ve received college degrees or professional training, which gives them more of an edge over younger job seekers.
While it’s still true that the job market becomes less welcoming as people age, it’s better than it used to be.
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