AARP Hearing Center
The labor force participation rate refers to the percentage of people who are in the labor force. That is, the percentage of people who are working or actively looking for work. Over the last few decades, the labor force participation rate for people age 50 and older has fluctuated. In 1994, it was 40%. It gradually rose and peaked at 49% in 2009. It then steadily declined to a low of 45% in 2022, due in part to the COVID-19 pandemic. In 2023, it rebounded slightly to 46%. This translated to almost 55 million people 50 and older who were working or looking for work.
A growing number of baby boomers (born between 1946 and 1964) have remained in the labor force, even after reaching traditional retirement age. In fact, the U.S. Bureau of Labor Statistics projects that those age 65 and older will be the fastest-growing age group in the labor force in the decade ahead. In particular, the worker age group with the fastest growth rate will be those age 75 and older, especially women.
It is important for older workers to have the option to work beyond the traditional retirement age. Some older workers delay retirement because they enjoy their jobs and want to keep working. Others keep working because they cannot afford to retire. In both cases, longer work lives contribute to current financial well-being and economic security in retirement.
Job creation and employment growth in the U.S. must be viewed within the context of a global economy and the increasing automation of tasks. Many jobs are easily exportable, with technology enabling workers in many occupations to be located anywhere. In addition, many jobs can be automated, and a number of tasks can be performed by artificial intelligence. U.S. policy must recognize and shape our country’s responses to these practices. Investments could increase human capital, create jobs that pay a living wage to workers in the U.S., and prepare workers for the new categories of jobs that will emerge.
Significant barriers to hiring and retaining older workers exist. Among them is the persistence of blatant or subtle age discrimination. This can include excluding older applicants from recruiting activities, refusing to hire older applicants or promote older workers, targeting older workers in layoffs, curtailing their employee benefits, and limiting their training opportunities and job responsibilities. Employment discrimination due to disability is a particular challenge for older workers. They are more likely than younger workers to live with disabilities.
A lack of flexible work arrangements can be a hindrance to older workers’ continued employment. Many need to combine paid work with caregiving responsibilities and often face discrimination as a result of those responsibilities.
Older workers need access to high-quality job search services and job training. Lifelong training and retraining opportunities can help to ensure that they remain competitive in a rapidly changing work environment.
In recent years, more and more people have been working in nontraditional arrangements. Workers in these arrangements do not receive important benefits and protections available to regular employees. The absence of these benefits and protections makes it more difficult for workers to save for retirement. It also makes them more vulnerable to financial shocks.