The workforce is changing dramatically, with twice as many Americans aged 65 and older now employed compared to 30 years ago, according to the latest findings from the Pew Research Center.
In 2023, older Americans made up 19% of the workforce, with an average wage of $22 per hour as of 2022.
More Older Adults are Working: A Major Shift in the Workforce
The trend is noticeable among different groups. In 2020, around 18% of African Americans aged 65 and older were working or actively looking for jobs. This figure compares to 20.7% of men and 16.4% of women in the same age group.
Moreover, the number of African Americans aged 65 and above is expected to soar by 80% between 2019 and 2040, indicating a significant shift in the demographic makeup of the workforce.
This rise in older adults working marks a significant shift in employment trends, reflecting changing economic and social landscapes.
The research also noted that the earnings for younger workers have seen a modest increase in recent years. This slow wage growth has led to a notable reduction in the pay difference between older employees and those aged 25 to 64.
The changing salary landscape indicates a shift in the earning patterns across different age groups in the workforce.
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Factors Why Older Adults Are Motivated to Work
The latest Pew Research research explains why older Americans are working longer. Most elderly workers are better educated than their predecessors. 44% have a bachelor's degree or above, up from 18% in 1987.
Educational development isn't only about personal performance; it's helping bridge the income gap for 25-64-year-olds. Between 2011 and 2021, the percentage of Black adults with bachelor's degrees rose from 19.9% to 28.1%, according to census data.
Policy changes also affect these tendencies. New Social Security rules set the total retirement benefits age at 67, two years later than before. This policy change affects older Black adults, who labor longer due to poorer education, income, and wealth than white ones.
Another vital factor is retirement plan evolution. Due to excessive inflation, many households are rethinking retirement. The study indicated that 36% of older workers, up from 33% in 1987, have employer or union retirement plans.
Traditional pension programs have been replaced with defined contribution plans like 401(k)s, which don't encourage early retirement.
Job types have also changed to accommodate elderly workers. Many have moved to less physically demanding jobs. Insurance sales, tour guiding, proofreading, and financial management give more flexibility and independence. These innovations have improved workplaces for older workers.
Despite their extended working years, the Pew Research Centre found that 65-year-olds are more satisfied with their jobs than younger workers. This trend shows that age is no longer a barrier to employment, and job happiness increases with experience.
The Columbia University Irving Medical Centre says older workers have various benefits. Age-related skills and expertise are increasingly appreciated across industries. These professionals have critical thinking, experience, and knowledge that takes time to learn. Jewelers, needleworkers, cabinetmakers, and cheesemakers often take over a decade to learn.
Even in less specialized sectors, Zarin Fabrics in the Lower East Side and A & H Harris Equipment Rentals on Gowanus salespeople need years to master and market their products. A nonprofit manager said younger personnel are driven and willing, but elder staff ask the right questions.
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