Inflation, recession huge risks for older employees near retirement
Forget the Great Resignation. The shakeup of Generation Z workers, seeking fulfillment and treating their jobs like a game of musical chairs, will sort itself out over time. They have their whole lives ahead of them to find something that fits.
The larger crisis is what to do with all the older-than-50 workers searching for gainful employment. This is one of the worst times to be a worker in the twilight of a career. Only half of Americans are steadily employed throughout their 50s. Last year, more than a quarter of workers ages 55 to 59 were out of the workforce, which meant that they didn’t have jobs to retire from.
COVID-19 exacerbated this trend, as millions of older American workers disproportionately lost their jobs.
Opinions in your inbox: Get exclusive access to our columnists and the best of our columns every day
Across the globe, full-time, stable employment that culminated in pensions has become a relic of the pre-pandemic past. In the United States, an increasing number of workers can’t afford to retire, not with inflation and uncertain retirement savings. Now, a worker must wait to age 70 to collect maximum Social Security benefits, and Congress is expected to discuss raising the age for Social Security eligibility next year.
It makes sense that people should be able to work longer to boost their retirement accounts. But many of those who need to work longer are unable to do so because they lose their jobs long before they reach retirement age and can’t find another one. So they effectively retire.
Inflation harms retirement prospects:Retirement dreams become nightmares for many older Americans as inflation soars
Multiple factors create challenges for older workers
The disappearance of stable employment with a living wage and benefits – once the driver of upward mobility – has added to growing inequality. Global crises like COVID-19, changing business models and emerging technologies have led to the rise of low-quality, temporary jobs.
If workers have physically demanding jobs such as in retail or hospitality, poor health can force them to drop out. Many workers in their 50s also have caregiving responsibilities for older generations, which temporary gigs don’t accommodate. And of course there’s ageism.
A Brookings Institution report found a strong relationship between holding steady employment in one’s 50s and working in their 60s and beyond. So interventions to support older workers must start earlier on, even in one’s 40s. This can be done by improving the quality of low-wage jobs – including through higher minimum wages, greater work schedule flexibility and paid leave – to reduce turnover. That will help people work longer.
South’s racist past still harm workers:Unions can help us build a new future
Likewise for firms, this is an opportunity to avoid productivity losses in the long run by maintaining a stable workforce. Firms that rely on disproportionately large numbers of hourly workers tend to have higher turnover rates. They are also less likely to invest in employee training and technologies.
Assisting older workers with developing skills that are in demand can help them…
Read More: Inflation, recession huge risks for older employees near retirement