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Aging of the American Workforce: Trends, Opportunities, Challenges.

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Presentation on theme: "Aging of the American Workforce: Trends, Opportunities, Challenges."— Presentation transcript:

1 Aging of the American Workforce: Trends, Opportunities, Challenges

2 1. Why WIA/One-Stops Should Pay Attention to Older Workers 2. Why Employers Should be Concerned

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4 IMPLICATIONS FOR EMPLOYERS The country is growing older, and the workforce along with it As the baby boom reaches retirement age, there will be fewer young adults entering the workforce to replace them These trends will have economic and productivity consequences, putting a strain on business/industry Continuous work at some level (ft/pt) - increasingly important & desirable for older people and society as a whole

5 GROWING OLD IN AMERICA TODAY Radically different than it was for previous generations Today: healthier, better educated, more willing to work into the later years Chronology = Competence To stay competitive as new sources of labor become scarce, employers must not overlook this talented and largely untapped employee base

6 The U.S. Workforce is Aging Baby Boomers come of age 30% of Americans are boomers (83 million) By % of Americans will be 65+ By 2005: median worker age 41 workers 45+ will comprise 40% of the workforce Workforce will continue to age through 2015 oldest boomers begin to retire

7 The Economy is Hot [or at least luke-warm] Local labor markets extremely tight : BLS projects 14% increase in employment Pay scales driven higher; benefit packages increasing Companies beginning to look to new sources of labor supply

8 RETIREMENT TRENDS Growing indication the early retirement trend is leveling off Growth in jobs/declining unemployment creates demand for all workers Increasing popularity of bridge jobs (gradual retirement)

9 LOW-INCOME BOOMERS 9 million boomers (today aged 35-54) did not graduate from high school incomes 12% lower than for similarly educated persons in their parents’ generation US will soon see an increase in the number of poor, aging adults As the tail of the “bulge” reaches age 45, low-income mature workers will soon increase by 25% [from 8 to 10 million]

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12 ECONOMIC CONSEQUENCES Dependency ratio 1950: 7 working age persons to 1 elderly person 2030: ratio will dwindle to less than 3 to 1 Increasing work participation rate of older Americans would: add to the productivity of the workforce alleviate strains on the US economy increase private saving and reduce the burden on public resources through higher tax revenues

13 DEMAND FOR OLDER WORKERS As workers retire, the economy loses valuable work experience Improvement in work-readiness of young workers needed to meet ever- higher skill requirements of the economy cannot be taken as a given Older workers are productive, reliable, trainable, with a high work ethic and customer service focus

14 NECESSITY OF LIFELONG LEARNING Key factor to productivity (of all workers) is skill level and training For most mature Americans there are few physical or cognitive barriers to work and learning new skills Employers and workers must both work towards closing the technology training gap

15 Age & Income Affect Training Needs Common stereotypes portray older workers as: Harder to train Less able to keep up with technological change Less promotable Less motivated

16 Older Workers are not a Homogenous Lot Different needs … Different strategies Dislocated workers Women [displaced homemakers] Low income

17 Training Implications Training for older workers needs to be slowed down Vision and hearing changes require attention Older workers prefer less formal seating arrangements Training proceeds better in comfortable classroom environments Shorter sessions are more effective The training class is best when kept small

18 Some Things to Remember Older people perform better on self- paced tests than they do on timed tests When both words and pictures (graphics) are used, older persons can retain 6 times more information It’s much easier for older people to see yellow, orange & red than darker colors Greater levels of illumination are needed (an average 60 yr. old’s eye admits only  as much light as a 20 yr. old)

19 The Training Process Training focus should be on the gains of experience Older workers learn what they think they need to learn Trainees need help with self-confidence and self-esteem issues Older trainees value non-verbal rather than verbal training

20 Adults learn by doing The training process should be slowed down --- self paced learning works best Training should have ample opportunities for practice Testing should be used sparingly Relate training to skills already possessed

21 Adults Learn by Doing Method Lecture Reading Audio Visual Demonstrations Discussions Practice (experiential) Average Retention Rate 5% 10% 20% 30% 50% 75%

22 Barriers to Labor Market Participation Government policies and practices –Financial incentives to retire –Health care Public/Private Employer policies and practices –Age stereotypes –Pensions –Training and retraining Individual barriers –Rapid technological change (new occupations/skills)

23 Promising Program and Practices SCSEP (Title V of the OAA) is a viable One- Stop Partner to Meet Demographic Needs 100,000 served, 35,000 placed annually Outreach & recruitment Counseling Assessment, IDP development Subsidized work experience & training Job development & placement

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25 Working Together to Meet Goals As a partner, SCSEP can... 1Provide training to One-Stop staff to prepare them to better serve older workers 2Ensure specialized assistance is available for older workers to effectively utilize the One-Stops [staffing strategies] 3Ensure One-Stops accommodate the special needs of older workers 4Assist One-Stop job developers to include job opportunities for older workers

26 5Ensure One-Stops have necessary linkages & partnerships to ensure availability of specialized training for older workers 6System linkages to facilitate access to support services needed by older workers 7Assist One-Stops with an outreach & recruitment plan that includes older workers and minority older workers 8Assign project participants to serve as mentors to school-to-work and welfare-to-work participants 9 Provide employer linkages

27 An Older Worker Policy Makes Good Business & Political Sense Demographic and Economic Imperative: Employers facing labor force drop-off due to retirements will have to adapt in some way Political Imperative: Extending work lives may help reduce younger workers’ burden supporting retirees (Social Security & Medicare) The SCSEP as your partner can assist you in meeting the needs of older job seekers.

28 NEED FURTHER INFORMATION OR ASSISTANCE?

29 OLDER WORKER PROGRAMMING RESOURCES DoL/ETA Technical Assistance Guides  Using the Workforce Investment Act to Serve Mature and Older Workers  One-Stop Training Curriculum for Older Worker Specialists  Different Needs, Different Strategies: A Manual for Training Low-Income Older Workers  An Employer’s Guide to Older Workers: How to Win Them Back and Convince Them to Stay SCSEP WEBSITE:

30 OLDER WORKER PROGRAMMING RESOURCES To obtain (free) copies of Technical Assistance Guides, contact: David Richardson US Department of Labor, D/OWP 200 Constitution Ave., NW Rm N4644 Washington, DC Phone: Fax:

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