1. The Economic Challenges Confronting Low-Skilled Older Workers Richard W. Johnson Urban Institute May 14, 2009

2. Urban Institute Retirement Policy Program www.RetirementPolicy.org Adults with Limited Education Often Struggle Financially at Older Ages Household Income as % of Poverty Level Source: Johnson (2009)

3. Urban Institute Retirement Policy Program www.RetirementPolicy.org Financial Hardship Becomes More Common As People Approach 62, when Social Security Begins Household Income as % of Poverty Level Source: Johnson & Mermin (2009)

4. Urban Institute Retirement Policy Program www.RetirementPolicy.org Declines in Economic Well-Being in One’s 50s and 60s Are Tied to Employment Source: Johnson & Mermin (2009).

5. Urban Institute Retirement Policy Program www.RetirementPolicy.org Older Men’s Employment Rates Increase with Education Source: Johnson (2009).

6. Urban Institute Retirement Policy Program www.RetirementPolicy.org Rates Also Increase for Women Source: Johnson (2009).

7. Urban Institute Retirement Policy Program www.RetirementPolicy.org Low-Skilled Workers Are More Likely than College Grads to Work in Difficult Jobs Source: Johnson et al. (2007).

8. Urban Institute Retirement Policy Program www.RetirementPolicy.org Many Early Workforce Departures Are Involuntary, Especially for those with Limited Education Source: Johnson et al. (2008).

9. Urban Institute Retirement Policy Program www.RetirementPolicy.org Older Adults with Limited Education Tend to Have More Health Problems than Well-Educated Older Adults Source: Author’s estimates from HRS.

10. Urban Institute Retirement Policy Program www.RetirementPolicy.org Work Disabilities Increase Financial Hardship for Older Adults Who Did Not Complete High School Source: Johnson & Mermin (2009).

11. Urban Institute Retirement Policy Program www.RetirementPolicy.org About Half of Older Workers Without High School Diplomas Who Leave the Workforce Early Fall Into Poverty Source: Johnson & Mermin (2009).

12. Urban Institute Retirement Policy Program www.RetirementPolicy.org Working Longer at Older Ages Also Boosts Retirement Incomes Source: Butrica, Smith, & Steuerle (2009).

13. Urban Institute Retirement Policy Program www.RetirementPolicy.org As The Recession Continues, Unemployment Among Older Men with Limited Schooling Is Soaring Source: Author’s computations from the CPS. 2007 2008 2009

14. Urban Institute Retirement Policy Program www.RetirementPolicy.org Unemployment Rates for Older Women With Limited Schooling Are Also High, but Lower Than the Rates for Older Men Source: Author’s computations from the CPS. 2007 2008 2009

15. Urban Institute Retirement Policy Program www.RetirementPolicy.org Older Displaced Workers Face Special Labor Market Challenges Older unemployed workers have trouble finding jobs –Among unemployed men 65+, 27% were out of work for 27+ weeks in 2008 –For men 35-44, corresponding figure is only 22% Older displaced workers who find work experience large wage losses –Wage loss=50% at age 58, only 20% at age 40 (Couch et al. 2009). Unemployment stats may understate problem –Seniors are more likely to become discouraged

16. Urban Institute Retirement Policy Program www.RetirementPolicy.org Congress Should Increase Funding For Employment and Training Services Government spending on employment and training programs has declined by nearly 70% since late 1970s (Holzer & Martinson 2008) Boost funding for Senior Community Service Employment Program (SCSEP) –only federally-funded employment program targeted to older adults –provides training & subsidized employment to adults age 55+ with incomes below 125% of poverty level –only serves about 100,000 clients per year

17. Urban Institute Retirement Policy Program www.RetirementPolicy.org How Many Older Adults Might Participate in SCSEP if Slots Were Available? Source: Author’s computations from HRS data Nonworkers, low-income No disabilities