December 8, 2024
150 million jobs will shift to older workers by 2031

150 million jobs will shift to older workers by 2031

150 million jobs will shift to older workers by 2031 – MarketWatch

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Last Updated: July 17, 2023 at 11:13 a.m. ET First Published: July 17, 2023 at 6:33 a.m. ET

Despite the huge millennial population, 55+ workers are surging, study says.

This working longevity is good news for those in jobs where you can maintain satisfying employment in later years.

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[]If it’s not AI robots taking over the workforce, then it’s at least supposed to be millennials, right? So why are workers age 55 and older actually the ones grabbing an ever-increasing share of the jobs? 

[]Older workers will make up 25% of the workforce in the U.S. by 2031, according to a new analysis by Bain & Co. That amounts to a shift of about 150 million jobs to older workers from younger workers, globally. That 55+ age bracket already currently makes up almost a quarter of the workforce in the U.S., while Generation Z workers ages 15 to 24 have slipped down below 13%. The numbers are more stark in countries like Japan and Italy that have even older demographics than the U.S. 

[]Even as baby boomers retire in huge numbers and the enormous millennial population takes over, Bain still expects this trend to continue in most developed economies. “The demographic trend is clear — older workers are going to rise as a percentage of the workforce in the next 10 to 20 years, as well as rising as a percentage of the population,” says James Root, a partner at Bain and co-chair of Bain Futures. 

Bain & Company

Work longer and prosper

[]This working longevity is good news for those in jobs where you can maintain satisfying employment in later years, and not such good news for those who work in physical jobs that are harder to maintain as you age. The Bain report finds that most workers are primarily motivated by pay, but that shifts at 60, when there’s a tipping that makes “interesting work” the No. 1 job attribute. After that point, autonomy and flexibility also significantly increase in importance. 

[]“White-collar workers probably have an advantage in working later,” says Root. “We can say that the shift from prioritizing compensation to prioritizing flexibility after the age of 60 is especially true among university graduates, and less pronounced among those without a university degree.”

[]Bain says it focused on workers 55 and older for this report because that’s the age bracket where they started to see significant shifts in what people are looking for in their careers. “We also felt like that’s a reasonable point at which people would generally think of someone as being an ‘older’ worker,” says Root.

Impact on employers

[]The Bain report details many ways that companies around the world are starting to notice the demographic shift toward older workers and develop programs to recruit and retain older workers. For instance, the National Institutes of Health in the U.S. has a program to recruit people looking for a second career, particularly ex-military and academics, while CVS Health CVS, -0.29% has a “Snowbird” program that allows pharmacists in colder climates to spend part of the year working in warmer places. 

[]Read: ‘I needed something to do’: How working in retirement is being embraced by older adults and companies

[]The report found a lack of programs focused on retraining for older workers, however. “There is plenty of room for innovation here,” says Root, who thinks progress has been a little slow in the postpandemic business environment. “The good news is that older workers are excited by the notion of growth and extension—so once companies understand which types of extension and reskilling programs are going to work for them, we believe they’ll find success.”

Beating the 4% rule in retirement has become even easier

[]The potential of a ladder of individual TIPS

[]Beth Pinsker is a financial-planning columnist at MarketWatch. She has been a certified financial planner (CFP®) since 2018. Previously, she was a personal finance columnist and editor at Reuters, an editorial director at Fidelity and editor-in-chief of Walletpop.com. Prior to covering personal finance, she was a film critic and entertainment business reporter, writing for Entertainment Weekly, The Dallas Morning News and many more publications. You can follow her on Twitter @bethpinsker.

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