A Closer Look

Older Workers Participation in US – Recent cohorts of women have been participating at higher rates than their predecessors early in life but lower rates in middle age but man …

Labor force participation is rising for older workers in the U.S.; therefore, while it is tempting to focus  on prime-age workers to gauge the economy’s health to avoid demographic effects, doing so misses important shifts amongst those over 54 years old.

Figures 1a and 1b (below) show labor force participation rates by gender, birth cohort, and age in five–year intervals. These figures describe both trends in labor force participation by age and whether levels and patterns in labor force participation have changed across generations. Since labor force participation is a substantial determinant of output and living standards over time, these numbers and trends are significant.

In general, the broad trends for men and women are different: recent cohorts of women (across age spans) have been participating at higher rates than their predecessors early in life but lower rates in middle age, while recent cohorts of men have been participating at lower rates throughout prime-age years. However, those currently ages 60 to 64 (purple)—men and women alike—are both still working at higher rates than their prior cohorts.

To measure the importance of the rising rates of older workers in the labor force, we decompose the changes in overall labor force participation into changes in the age composition of the adult population and changes in the propensity of each age group to work. We found that aging contributed 2.7 percentage points to the 3.1 percentage point decline, while changes in participation contributed just 0.4 percentage points.

Yet this small contribution of participation rate changes to the overall decline masks the sizable shifts within gender-age groups shown in figure 2 (below):

It is young people—particularly young men—who have driven the overall participation rate down between 2007 and 2018.
In total, the declining participation of prime-age or younger workers led the overall participation rate to decline by 1.14 percentage points.
By contrast, the participation of men and women age 55 and older raised the overall rate by 0.73 percentage points.

Can older individuals be expected to continue to maintain a higher level of participation than in the past?

Chosen excerpts by Job Market Monitor. Read the whole story at Is the continued rise of older Americans in the workforce necessary for future growth?

Discussion

No comments yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

Jobs – Offres d’emploi – US & Canada (Eng. & Fr.)

The Most Popular Job Search Tools

Even More Objectives Statements to customize

Cover Letters – Tools, Tips and Free Cover Letter Templates for Microsoft Office

Follow Job Market Monitor on WordPress.com

Enter your email address to follow this blog and receive notifications of new posts by email.

Follow Job Market Monitor via Twitter

Categories

Archives

%d bloggers like this: