Older workers are being pushed out of the workforce at high rates during COVID-19, a detrimental move that could spell disaster for their own economic stability and for the workforce, too.
Workers 55 and older were 17% more likely to lose their jobs within the first six months of the pandemic, according to data from the U.S. Census Bureau, and two million older workers said COVID forced them to leave the workforce for good. More than a quarter of workers say they will retire earlier than expected due to the pandemic, data from the National Institute of Retirement found.
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To help this vulnerable population stay in the workforce and maintain financial security, employers need to recognize the benefits of having them as a part of their community and give them the digital skills training they often lack, says Mindy Feldbaum, AARP’s VP of workforce programs.
“AARP found that 83% of global business leaders recognize that multi-generational workforces are key to growth and long-term success of the companies,” Feldbaum says. “Employers should provide training so older workers can capitalize on the changing nature of work and the workplace, and get on the pathway to economic security.”
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AARP offers a variety of programs and resources to help older workers obtain the digital skills they need, find qualified positions, and even start their own businesses through entrepreneurship support and training. Feldbaum discussed these programs and the unique challenges facing older workers during the pandemic with Employee Benefit News.
COVID has been challenging for a lot of workers, but what are some of the specific hurdles older employees have faced over the last 18 months?
We’re kind of still in the middle of it, right? So we don’t really know the lasting economic effects, but we do know that there have been immediate disparate impacts on older individuals. Job loss has disproportionately impacted older Americans, particularly low income African American, Hispanic, LatinX, and Asian Pacific Islander workers. For the first time, adults 55-plus have lost their jobs at higher rates than their younger peers and are also much more likely to be long-term unemployed.
We also know that it takes older workers about double the time to find a new job as younger workers, and when they do find a position, the likelihood of finding a job that’s comparable to their former one is pretty slim. So that creates a condition of under-employment, which worsens their economic outlook and their retirement.
How does age discrimination play a role in making it more difficult for older workers to find appropriate jobs?
Age discrimination was clearly there and was very present and persistent before COVID. In 2020, 78% of older workers aged 40-65 have seen or experienced age discrimination, and that plays out in a lot of different ways, from being forced into early retirement or accepting jobs with lower pay.
The digital transformation of businesses also exacerbated this — although many older workers were able to access online and remote work, it accelerated potential inequalities in the labor market. For instance, especially low income workers may not have had access to broadband or can afford internet access. And one in three older workers lack the foundational digital skills needed for jobs today.
How is AARP ensuring these older employees have access to the training and opportunities they need to continue to be successful?
AARP has three programs that provide resources and guidance for 50-plus workers. The senior community service employment program offers unemployed, low-income adults workforce training to help them obtain jobs. Participants are matched with local nonprofits and public agencies to gain work experience. Most of our participants also receive supportive services and job readiness training and career guidance. Back to Work 50+ provides job seeking tools and coaching for older adults, where people from all over the country can gain access to job readiness workshops and coaching to help them prepare for a full-time job. Finally, AARP’s Work for Yourself program helps low income, older adults achieve financial stability through self-employment and helps to increase the number of older entrepreneurs that successfully positioned themselves to launch their own business. Entrepreneurship offers an alternative to traditional employment for older adults.
How can employers provide a supportive environment for older employees and help them bridge these skills gaps?
Older workers have the institutional knowledge and wisdom that can help with younger workers. I think some of the limitations for them is they don’t often have the ability to access skill development opportunities, whether reskilling and upskilling. And so employers should provide equal access to that so they can continue to have those relevant skills and be able to capitalize on the changing nature of work and the workplace, and to get on the pathway to high quality in-demand jobs.
All of this acceleration of technology, it’s a double-edged sword. Most jobs today have a need for baseline and advanced digital skills, and AARP is doubling down on providing that because if we can get workers these skills, we’ll be getting them into better jobs and on their way to economic security.
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