Health age and labor force disruption of older workers
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Health, Age, and Labor Force Disruption of Older Workers. Victor W. Marshall, Ph.D. Director, UNC Institute on Aging. A ging is Good Business: The Silvering Workforce UNC Greensboro April 8, 2009. Overview of Presentation. Aging of Population and Graying of the Workforce

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Health age and labor force disruption of older workers

Health, Age, and Labor Force Disruption of Older Workers

Victor W. Marshall, Ph.D.Director, UNC Institute on Aging

Aging is Good Business: The Silvering Workforce UNC GreensboroApril 8, 2009


Overview of presentation

Overview of Presentation

  • Aging of Population and Graying of the Workforce

  • Why older workers want to stay employed

  • Why we need to facilitate employment of older workers

  • Stereotypes about Older Workers and Health

  • Health and Labor Force Participation

  • What we need to do

Prepared by the UNC Institute on Aging


Trends in workforce aging

Trends in Workforce Aging

  • Global Aging of Populations

  • US population is relatively younger

    • high numbers of younger immigrants

    • higher fertility rates than U.S. born population

    • decrease the median age

  • Median age of the US labor force increasing

    • 1986- 35.4

    • 2006 -40.8

    • 2016- 42.1 ( projected)

Prepared by the UNC Institute on Aging


U s population pyramids

U.S. Population Pyramids

2000

2020

Source of charts: U.S. Census Bureau, “65+ in the United States: 2005,” December 2005.


Projected population changes 2005 2025

Projected Population Changes 2005-2025

  • The population age 25-54 will grow from about 126 million to almost 131 million.

  • The population age 55 and over will grow at a much faster rate, from about 67 million to nearly 105 million.

Source: Patrick Purcell, Older Workers: Employment and Retirement Trends, CRS Report for Congress, September 14, 2005.


Employment trends ages 25 54 labor force participation rates 1950 2005

Employment Trends: Ages 25-54Labor Force Participation Rates, 1950-2005

Sources of data: Patrick Purcell, Older Workers: Employment and Retirement Trends, CRS Report for Congress, September 14, 2005; U.S. Census Bureau, Statistical Abstract of the United States, 2007.


Employment trends ages 55 64 labor force participation rates 1950 2005

Employment Trends: Ages 55-64 Labor Force Participation Rates, 1950-2005

Sources of data: Patrick Purcell, Older Workers: Employment and Retirement Trends, CRS Report for Congress, September 14, 2005; U.S. Census Bureau, Statistical Abstract of the United States, 2007.


Employment trends ages 65 labor force participation rates 1950 2005

Employment Trends: Ages 65+Labor Force Participation Rates, 1950-2005

Sources of data: Patrick Purcell, Older Workers: Employment and Retirement Trends, CRS Report for Congress, September 14, 2005; U.S. Census Bureau, Statistical Abstract of the United States, 2007.


Percent increase in employment by age and gender 1977 2007

Percent Increase in Employment by Age and Gender, 1977-2007

Greater % increase in older workers, older female workers.

Prepared by the UNC Institute on Aging


Projected graying of the workforce

Projected Graying of the Workforce

Prepared by the UNC Institute on Aging


Older workers expect to stay in the workforce

Older Workers Expect to Stay in the Workforce

  • 70 to 75% of Americans expect to work to some extent after retirement (Merrill Lynch, 2005;Rutgers, 2008).

  • With deteriorating economic conditions 45% of Americans believe they will retire at a later age than they originally expected (Gallup, 2008)

Prepared by the UNC Institute on Aging


Older workers profile

Older Workers: Profile

  • Older workers tend to be healthier, more prosperous, and better educated than their retired counterparts.

  • Many factors influence decisions to remain in the labor force.

    • Individual or family financial situations, based on general economic conditions, access to Social Security and pension benefits, and the availability of health insurance.

    • Personal situations, e.g., health and their enjoyment of work.

Sources: Patrick Purcell, Older Workers: Employment and Retirement Trends, CRS Report for Congress, September 14, 2005; U.S. Census Bureau, “65+ in the United States: 2005,” December 2005.


Older workers and non traditional work arrangements

Older Workers and non-traditional work arrangements

  • As they transition to retirement, older workers are more likely to work part-time, be self-employed, or engage in other nontraditional employment arrangements.

Sources: Patrick Purcell, Older Workers: Employment and Retirement Trends, CRS Report for Congress, September 14, 2005; U.S. Census Bureau, “65+ in the United States: 2005,” December 2005.


Why work beyond normal retirement

Why Work Beyond “Normal” Retirement?

  • AARP study of work after retirement:

    • Need the income – 76%

    • Enjoy working/stay connected to others – 70%

    • Need for health benefits – 61%

    • Desire to stay mentally active, keep learning, and be useful – 52%

      (AARP 2008)

Prepared by the UNC Institute on Aging


Limited savings for older workers

Limited Savings for Older Workers*

  • Savings & Investments, workers aged 55+

    • Less than $10,00028 %

    • $ 25,000 8 %

    • $ 50,000 7 %

    • $ 100,00016 %

    • $ 250,00018 %

    • $ 250,000 +23 %

    • Source: Employee Benefit Research Institute, Bureau of Labor Statistics, 2008. (excludes value of home & pension plans)

Prepared by the UNC Institute on Aging


Changes in retirement benefits

Changes in Retirement Benefits

Prepared by the UNC Institute on Aging


Changes in retirement benefits1

Changes in Retirement Benefits

  • Over the last 2 decades companies have shifted from traditional pensions to 401(k)’s, transferring retirement costs from companies to employees. (Greenhouse, 2008)

  • “For too many Americans, 401(k) plans have become little more than a high stakes crapshoot.” (George Miller, Chair, House Education and Labor Committee, Feb. 2009)

  • Workers have lost $2 trillion in 401(k)’s in the last 15 months. (Congressional Budget Office, 2009)

  • “Just social security and 401(k) plans will not give retirees enough money.” (Alicia Munnell, Center for Retirement Research, Boston College, 2009)

Prepared by the UNC Institute on Aging


Reemployment experiences of older workers

Reemployment Experiences of Older Workers

Age groupReemployment rate

20-2466%

25-5475%

55-6461%

65+ 25%

*Source: GAO, 2007

·Older workers are more likely than younger workers to be displaced

·Less likely to get another job

·It takes them longer to get another job

·Workers under 50 are 42% more likely to get an interview than those 50+ (Lahey, 2005)

Prepared by the UNC Institute on Aging


Reemployment consequences for older workers

Reemployment Consequences for older workers

  • Greater earning losses than younger workers

  • Dislocated workers with 20 years of experience find jobs paying between 20-40% less than their previous job

  • Fewer employment opportunities in a narrower range of industries and occupations than younger workers(Heidkamp and Van Horn, 2008)

  • Older men, especially those laid off in male dominated manufacturing industries, are disproportionately represented in the long-term unemployed (lasting more that 6 months)

Prepared by the UNC Institute on Aging


Older adult unemployment 2007 2009

Older Adult Unemployment, 2007-2009

Source: www.urban.org/retirement_policy/url.cfm?ID=411846 (Bureau of Labor Statistics 2009b data)


Older workers part time and full time employment

Older Workers’ Part-time and Full-time Employment

  • Between 1990 and 1995 increase in part-time work and decline in full time work

  • Between 1995 and 2007 older workers on full-time schedules doubled, while part-time workers increased only 19%

  • By 2007 56% of older workers full time; trend likely to continue (Bureau of Labor Statistics, 2008)

Prepared by the UNC Institute on Aging


Older workers part time and full time employment1

Older Workers’ Part-Time and Full-Time Employment

Part-time

Full-time

Prepared by the UNC Institute on Aging


Why we need to facilitate employment among older workers

Why we need to facilitate employment among older workers

  • Many of them want to work or need to work

  • We need people to work longer because the large baby boom cohort is passing into retirement

  • The need is greater in some sectors than others

  • Labor force disruption has negative health consequences

    I WILL NOW FOCUS ON THE WORK AND HEALTH RELATIONSHIP


Barriers ageism and age discrimination

Barriers: Ageism and Age Discrimination

  • National studies of employers show barriers to hiring and retaining older workers:

  • Employers wrongly assume older workers are more expensive due to

    • Compensation

    • Costs of health insurance

    • Costs of training

    • Lower production and lower quality work than younger workers

    • Resistance to change

  • Employers also fear age discrimination lawsuits in laying off recently hired older workers (GAO, 2007)

Prepared by the UNC Institute on Aging


Countering age discrimination

Countering Age Discrimination

  • Ageism (attitudinal) is not the same as Age Discrimination (behavioral)

  • Perceived age discrimination alone can lead to mental health problems (Yuan 2007)

  • “Older” job seekers 40% less likely to get interview (Lahey 2005)

  • Ageism related to concerns about health and ability to adapt to technological and organizational change


How true are the stereotypes

How true are the stereotypes?

  • Realistically, there are aging-associated health issues

  • But these are too frequently exaggerated


Health age and labor force disruption of older workers

Percent of Population that is Obese (BMI equal to or greater than 30)

by Age, Selected Years.

Percent (%)

Data source: The National Health and Nutrition Examination Survey


Health age and labor force disruption of older workers

Note: The need for assistance with activities of daily living was not asked of children under 6 years.

Source: Brault, Matthew W. “Americans with Disabilities: 2005” (2008) Current Population Reports in U.S. Census Bureau, survey of Income and Program Participation, June-September 2005.


Life expectancy at age 65 by sex and race ethnicity 1950 2003

Life Expectancy at Age 65 by Sex and Race/Ethnicity, 1950-2003

Years

Data Source: The National Vital Statistic System


Average length of hospital stay in days by age 1970 2004

Average Length of Hospital Stay (in days) by Age, 1970-2004

Average length of stay in days

Data Source: The National Hospital Discharge Survey


Current cigarette smoking by age and sex 1965 2005

Current Cigarette Smoking by Age and Sex, 1965-2005

Percent (%)

1965

1975

1995

1985

2005

Data source: National Health Interview Survey


Older adults report being healthier

Older Adults Report Being Healthier

  • Older adults reporting excellent or good health

    Source: National Center for Health Statistics, 2008.

Prepared by the UNC Institute on Aging


Health age and labor force disruption of older workers

Schematic:performance ability and agemost people will retire or reach very advanced age before declines in ability fall below levels needed for their job


Are older workers less productive

Are Older Workers Less Productive?

  • There is no evidence that older workers’ performance and the importance of their accumulated knowledge do not compensate for their higher cost (ILO, 2005).

  • …”Older workers can be as productive as younger workers, especially if we increase job flexibility and design jobs suitable for them” (Victor Marshall, UNC-Institute on Aging, 2008).

Prepared by the UNC Institute on Aging


Chesley sullenberg an older worker age 58

Chesley Sullenberg: An Older Worker (Age 58)

  • Pilot license at age 14; “Best aviator in class, Air Force Academy; Commercial pilot since 1980

  • Co-pilot, Jeffrey Skiles, Age 49, flying since age of 15; 20 years experience as commercial pilot

  • Prior to 1959: no mandatory retirement age in US for pilots

  • 1959: imposed age 60 but in 2007 FAA approved age 65 (LICAO requires one pilot to be under age 60 for international)

  • Research on Air Traffic Controllers: Experience can compensate for declines in cognitive function that might otherwise appear with aging (Nunes & Kramer (2009), Journal of Experimental Psychology: Applied 15 (1): 12-24


Health and labor force disruption

Health and Labor Force Disruption

  • The relationship between retirement and health

  • Health problems cause labor force disruption

  • Labor force disruption causes health problems

  • Recent reports show U.S. workers aged 50+ experience a disproportionate share of involuntary job loss


Consequences of loss of work

Consequences of Loss of Work

  • Loss of earnings– a social determinant of health

  • Poorer job quality in replacement jobs

  • Forfeiture of health and pension benefits

  • Reduced social involvement

  • Harmful health behaviors

  • Anxiety and other mental health problems

  • Increased physical disability at two years post-loss (stronger effects in women than men)

  • Source: Gallo, et al., and several studies they cite in Research on Aging 31 (3), May 2009


Consequences of instability in labor force participation the bell canada retiree study

Consequences of Instability in Labor Force Participation:The Bell Canada Retiree Study

  • MALE AND FEMALE , ‘early retirees’ from Bell Canada who experienced more post-retirement unemployment periods (greater labor force instability) and experienced higher perceived stress

  • The effects were stronger for women than for men

  • MEN who anticipated working post-retirement from Bell but did not (violated expectations) were more likely to report life stress and low life satisfaction

    Source: V. Marshall, P. J. Clarke, & P. Ballantyne. (2001. Instability in the retirement transition, Research on Aging 23 (4): 379-409


What we need to do to promote working longer

What we need to do: To promote working longer

  • Reverse the idealization of early retirement

    (we will need the labor of older workers for economic growth)

  • Create Flexible Working Arrangements


What we need to do to promote health

What we need to do: To promote health

  • Create age-friendly workplaces

    • Age-mixed teams

    • Mentoring

  • Better ergonomics

  • Retrain and Reassign for age-appropriate jobs

  • Increase workplace health promotion programs

  • Training for transitions into retirement


Aging workforce initiatives unc institute on aging

Aging Workforce Initiatives,UNC Institute on Aging

  • Applied research, e.g., case studies at the company level

  • Aging Workforce Interest Group

  • Seminars

  • Digital Library

  • “Pub Alerts” on the aging workforce, Frontline Healthcare Workers, Health Promotion and Healthy Aging, and Lifelong Learning and Engagement

  • Available at www.aging.unc.edu or by contacting Dr. Peter J. Stein, Associate Director, Aging Workforce Initiatives [email protected]


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