Labor-Market Age Bias Persists, but Declines

Source article here.

Almost two-thirds of older job applicants say they experience prejudice, but that is down from 96% in 2009

Do these stories resonate with you?

• "Before retirement I was repeatedly not considered for employment, with my age being a subtle but implicit reason for non-consideration."

• "Turned down for multiple jobs after video interview (when earlier phone interviews went very well and I had the exact skills and background needed for the job)."

• "When I was jobhunting and knew several others over the age of 50 that were jobhunting, it was a consensus in our group that age bias was very prevalent in the hiring process. The word overqualified was heard by many."

"We still have a problem. It is still the elephant in the room."  |  Credit: Getty

Sad to say, I imagine far too many Next Avenue readers can either identify with the experience of these job hunters in the second half of life or know someone who has confronted similar age barriers to employment. Ageism remains widespread and pernicious in the workplace and wider society. Consider how many political commentators and correspondents routinely use the contemptuous term "gerontocracy" in their election coverage.

"We still have a problem . . . but directionally over the past 15 years there has been progress."

That said, the longer-term picture in the workplace is showing signs of progress against age discrimination that should be acknowledged. The realization should also give reformists the energy to continue the good fight.

Case in point: A recent survey from the Age Friendly Institute, a nonprofit organization, found that 65% of participating Americans aged 50 or over said they believe age bias is a fact of life in the workplace. (The comments at the top of this column are drawn from those surveyed.) That percentage is still far too high, but the trend is heading in the right direction. A survey 15 years ago found that a depressing 96% of those surveyed said "yes."

Age Bias in the Workplace

Americans aged 50 and over who believe age bias is a fact of life in the workplace.

"We still have a problem. It is still the elephant in the room. We have work to do," says Tim Driver, founder and chief executive officer of Age Friendly Ventures, the umbrella organization for RetirementJobs.com, Mature Caregivers, and the Age Friendly Institute. "But directionally over the past 15 years there has been progress."

A look at job numbers reinforces the message in the survey. One in three of people aged 65 to 69, one in five of those aged 70 to 74 and nearly one in ten aged 75 and over are in the labor force, according to Jennifer Nash, an economic and market research analyst at the Lexington, Massachusetts, data and analytics firm VettaFi.

Labor Shortage Favors Older Workers

These labor force participation rates have risen by 44%, 49% and 59%, respectively, since 2000. Employers seem more open to hiring and keeping older workers on payroll, while many experienced workers are more willing to delay retirement, defined as full-time leisure. This is the case even though the combination of strong stock and real estate markets in recent years could ease the financial transition to retirement for many older workers to retire.

Older adults are earning incomes in diverse ways, with full-time work, phased retirement, bridge jobs, part-time employment, flexible tasks, entrepreneurship and self-employment among the more popular choices.

The most important factors that play into the decision to work well into traditional retirement years are earning money to pay bills or finding a sense of purpose. Perhaps the most powerful factor leaning against ageism is the tight labor market. Birth rates are down, and labor force growth is slow. Workers in their 50s, 60s, 70s and 80s are increasingly attractive to employers.

Driver of the Age Friendly Institute adds that human resource departments saw the advantages of age diversity 15 years ago. But these managers found the insight hard to sell to the C-Suite.

No longer, he says, especially with support from a raft of research demonstrating there is less turnover with experienced workers and greater customer satisfaction. Both trends are good for profits.

"Labor shortages drove changes in behavior," says Driver. "The business analysts, the strategy consultants also drove deeper thinking. We should stop ignoring older adults and look at them as an asset."

Rewriting the Popular Narrative

Economics alone isn't enough, however. Culture matters, too. Popular public narratives can shape how we invest, work and find purpose. The association of old age with decline has a long history, especially at work. The demographics of an aging population has fed fears that the economy would be dragged down by too many dependent older adults. Retirement became synonymous with full-time leisure.

"We should stop ignoring older adults and look at them as an asset."

A new, nuanced narrative about aging is being written, one that stresses diverse experiences and opportunity rather than the decline mantra. The new narrative builds on increased life expectancy, higher education levels and better overall health. Creativity can flourish with age. So can the productivity of experienced workers and second-life entrepreneurs.

Among the leading authors of this narrative are pioneers like Ken and Maddy Dychtwald, Ruth Finkelstein, Marc Freedman and Paul Kleyman; academic institutions such as the Center for Retirement Research at Boston College, the Stanford University Center on Longevity and Columbia University's Age Boom Academy; and legions of retirement coaches, financial advisers and lifestyle consultants. (Next Avenue is among the publications exploring the nuances and challenges of the new narrative.)

More organizations are trying to welcome older workers, too. For example, the Age Friendly Institute offers its Certified Age-Friendly Employer (CAFE) program. The program has certified certifies about 240 organizations — many well-known brand names — committed to being best places to work for employees ages 50 years and older.

Age discrimination remains a serious barrier to employment. But a series of broad, mutually reinforcing changes seem to be spreading the message that older workers are a valuable economic asset. We just need more people to listen.

Chris Farrell is senior economics contributor for American Public Media's Marketplace. An award-winning journalist, he is author of the books "Purpose and a Paycheck:  Finding Meaning, Money and Happiness in the Second Half of Life" and "Unretirement: How Baby Boomers Are Changing the Way We Think About Work, Community and the Good Life." Read More