A recent study conducted by the Center for Retirement Research at Boston College has challenged the prevailing notion that older workers are less productive and a drain on company profits. In an effort to assess the real impact of older workers in the workplace, researchers set out to provide a more accurate understanding of their contributions.
Contrary to previous conflicting and outdated studies, the findings of this research should alleviate concerns among hiring managers and break down stereotypes.
Gal Wettstein, senior research economist at the Center for Retirement Research, stated, "The prevailing view was that older workers are not as productive as younger workers. That’s not what we found." The study unveiled evidence that older workers do not hinder profitability. In fact, it revealed no consistent negative association between productivity and age.
This investigation takes place amid a growing trend of older adults choosing or needing to work for a longer period of time. According to the National Institute of Health, between 2000 and 2020, the percentage of employed workers aged 60 and over doubled for both men and women. Specifically, the percentage of employed men aged 60 or older increased from 7.4% to 14.8%, while among employed women, it rose from 6.3% to 14%.
Looking ahead, the Bureau of Labor Statistics projects that by 2024, the total labor force will consist of approximately 164 million people. Among them, around 41 million will be aged 55 and older. Notably, around 13 million individuals are expected to be 65 years or older.
Read: Coming to your job — more older workers
Labor Force Growth Rates for Older Workers
According to the Bureau of Labor Statistics (BLS), the labor-force-growth rates for individuals aged 55 years and older are projected to outpace all other age groups between 2020 and 2030. The BLS predicts that the cohort of individuals aged 75 years and older will experience a remarkable growth rate of 96.5%, while the age group ranging from 55 to 74 years old is expected to increase by 7.7%.
Increased Confidence in Hiring Older Adults
In response to the study, Wettstein, a spokesperson for the BLS, emphasized that companies should feel more confident about hiring older adults.
"In terms of practical implications, this study should alleviate any concerns that hiring older adults would be detrimental to business," Wettstein stated.
Addressing Age Discrimination in Employment
To address potential age discrimination in employment, it is essential to recognize that the Age Discrimination in Employment Act of 1967 protects applicants and employees who are 40 years old and older. This act prohibits discrimination based on age in various employment aspects such as hiring, promotion, discharge, compensation, and terms and conditions of employment.
While acknowledging the existence of age discrimination, Wettstein believes that this study provides reassurance regarding hiring older workers.
"It is important to acknowledge that there is discrimination against older workers, despite being against the law. However, this study should alleviate concerns surrounding the hiring of older individuals," Wettstein stated.
Valuing Older Workers
Columbia University's Mailman School of Public Health highlights the positive attributes of older workers. These individuals typically possess a strong work ethic, take fewer days off, and have extensive business knowledge and experience. Additionally, they play a crucial role in mentoring younger generations.
"We are encouraged by the fact that we did not discover any major negative effects. As society continues to age, it is reassuring to find evidence that this demographic shift is not burdensome or catastrophic for society," Wettstein concluded.
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