When older workers participate in the job market, it not only lowers unemployment rates but, in an economy like today’s, it fills a vital skills gap in the labor force.
A recent article from Reuters suggests that the economic boom of the past few years has been buoyed by Baby Boomers who have found their way back to the workforce.
The report cites data from the Bureau of Labor Statistics that says 3 million Americans over the age of 55 joined (or rejoined) the workforce over the past three years. For perspective, that makes up approximately 60% of the total volume of new and returning workers between 2016 and 2018.
But Reuters cautions that “the trend may have run its course,” citing the shrinking of the U.S. labor force during the first three months of this year. BLS data says that the labor force – people working or looking for work – has been slowing since the baby boom post-WWII. Despite the recent rebound, it’s unlikely to be sustained long term considering an aging population, says the report. Additionally, 226,000 workers who are age 55+ exited the labor market last month, the highest rate in three years.
Outside of raising wages, businesses may find themselves in a position where they need to expand their criteria for eligible workers or face an employment gap. These might include considering candidates with unconventional backgrounds – even criminal records.