1. Keeping Seniors Connected to the Labor Market: Trends and Benefits National Governor’s Association November 17, 2006 Trends and Benefits National Governor’s Association November 17, 2006

2. The U.S. Population is Aging

3. As America Ages, So Does the U.S. Workforce Boomers comprise 46% of today’s U.S. workforce At the same time, U.S. workforce growth is slowing Boomers comprise 46% of today’s U.S. workforce At the same time, U.S. workforce growth is slowing Source: U.S. Census Bureau, Bureau of Labor Statistics 78 million Baby Boomers (born 1946-1964)

4. Change in U.S. Population, 1950-1960 by Age Group

5. Change in U.S. Population, 1960-1970 by Age Group

6. Change in U.S. Population, 1970-1980 by Age Group

7. Change in U.S. Population, 1980-1990 by Age Group

8. Change in U.S. Population, 1990-2000 by Age Group

9. Projected Change in U.S. Population, 2000-2010 by Age Group

10. Projected Change in U.S. Population, 2010-2020 by Age Group Source: U.S. Census Bureau

11. Oldest Boomers are Turning 60 this Year Today’s retirees are living longer, but wanting to retire earlier – even if they can’t afford to These demographic changes have implications for business, individuals and communities

12. Labor and Talent Shortages are Projected

13. Retirements to take a toll on the Federal Government Average age of federal civilian workforce – 45.5 Nearly one-half of the federal workforce could begin retirement in 2008 at age 55 Average age of federal civilian workforce – 45.5 Nearly one-half of the federal workforce could begin retirement in 2008 at age 55

14. As well as State Government Source: Government Performance Project Survey of 37 States Anticipated State Government Retirements in the next decade…

15. The Workforce of Tomorrow? Gray matters

16. But Not All Mature Workers Can Work, Want to Work, or Find it Easy to Get A Job Many unable to work past retirement age –(mandatory retirement, physical strain/disability) Many unable to find flexible work options Many don’t want to work Many find themselves competing with experienced peers for later-in-life employment Many unable to work past retirement age –(mandatory retirement, physical strain/disability) Many unable to find flexible work options Many don’t want to work Many find themselves competing with experienced peers for later-in-life employment

17. And, many are unable to find employment Takes longer for older workers to find new jobs – –25.8 weeks vs. 18.9 for younger workers Harder for older workers to regain wages after a job loss Older workers more likely to drop out of the labor market altogether following job loss Takes longer for older workers to find new jobs – –25.8 weeks vs. 18.9 for younger workers Harder for older workers to regain wages after a job loss Older workers more likely to drop out of the labor market altogether following job loss Source: Bureau of Labor Statistics

18. Mature Workers have a prominent role to play in the country’s future economic growth Benefits for Workers: Less reliance on public supports Greater financial security (continue earning and saving) Better physical and mental health, lower mortality rates Benefits For Business: Retain knowledgeable, skilled and experienced employees Benefits to Communities: Reduced strain on government programs, services and benefits