Older workers over the age of 55 now make up workforce 23.2% of the workforce, and data shows that the growth of this section of workers now outpaces that of the total workforce. The growing segment of the aging workforce provides us with a very unique set of circumstances that have varying implications for the future of employment. On one hand, the shift in organizations putting their trust in older workers is a positive one for those who intend to continue working and saving for retirement for as long as they can.
On the other hand, the growth of an economy operating on older workers holds up opportunities for the future workforce, particularly at a time when the job market is already shrinking. Understanding this shifting composition of workers is essential for businesses that want to plan ahead and respond to the changing times appropriately with a clear strategy in place for what is to come.
As the share of older workers in the workforce continues to grow, these shifting timelines of retirement are relevant for businesses to explore. (Image: Pexels)
The Composition of Older Workers in the Workforce Presents Some Interesting Possibilities to Consider
This fascinating data, consolidated by MyPerfectResume based on data from the U.S. Bureau of Labor Statistics, gave us a magnified view of the shifting composition of the workforce between 2014 and 2025. For one, nearly one in four workers in the U.S. is now over 55 years old, with their numbers making up over 23.2% of the workforce, up from 22.1% from a decade ago. On the surface, this represents a 1% difference, but in practice, this represents millions of additional workers.
In addition, the number of workers aged 65 and above increased by more than 40% in the studied period. In 2014, there were approximately 8 million workers from this category participating in the workforce. Now, workers over 65 account for 11.4 million of the total workers. This can be attributed to better healthcare and improved longevity, but it also brings up questions about retirement plans and whether workers are, on average, able to save enough to retire comfortably after a long and successful career.
The Growth of Older Workers Is More Apparent In Some Industries
This skewed make-up of employees is more common in some industries, where between 30% to 50% of the workers are now drawing closer to retirement. The industry of farmers, ranchers, and other agricultural managers now has over 54.44% nearing retirement age. Occupations such as school bus drivers, transit and intercity bus drivers, the clergy, bookkeeping and auditing clerks, and chief executive officers are similarly filled by workers nearing retirement.
The problem isn’t just that older workers are still navigating the workforce. Issues arise when a significant number of them are expected to exit the workforce shortly, with insufficient training for future workers to qualify them to take their place. Without younger workers entering the workforce or specific industries at the same pace, major gaps could soon open up in some industries, leaving businesses unprepared for the transition.
The loss of knowledge and expertise could also be difficult, particularly if there is a sudden drop in numbers with no replacements to step up to the position. For positions such as CEO, we can be fairly certain that there will be a significant section of workers both qualified and interested in the role, but in other positions, the gaps could be significantly harder to fill.
It’s Time to Take the Training of Future Workers More Seriously
These aging workforce trends aren’t a sudden occurrence but come as a result of consistent issues that have been building over the years. With inflation, stagnating wages, and poor savings prospects, many older workers have chosen to stay employed over concerns about insufficient retirement resources.
Younger workers have also found themselves stagnating in their careers, seeing as more senior positions remained filled with older talent. The youngest generation of workers continues to lose out on entry-level roles due to preconceived notions regarding their work ethic or merely the automation of their roles.
This shift has prompted Gen Z workers to look to blue-collar work more optimistically. This spread of skill is a positive development for the most part, ensuring that they secure employment opportunities, but there remains a greater concentration of workers vying for white-collar roles.
Those who do make it into the employed workforce also face challenges. Without training and mentorship, many young workers are finding it harder to hold on to their jobs, seeing limited growth and job security. This isn’t a problem exclusively for the workers. Without imparting training and looking into upskilling initiatives, employers risk losing out on workers abruptly, with no replacements to fill in once the older workers exit the workforce.
Managing a Multigenerational Workforce Efficiently Is Key to Thriving
Addressing the aging workforce of workers over 55 isn’t the only challenge that employers and their HR teams need to combat. Gen Alpha is only a few years away from entering the workforce, and we already have a multi-layered workforce to manage and strengthen today. Without dedicated effort to ensure that all workers are equally benefited by their contributions to the organization and supported in their employment, cracks in operations are inevitable, either due to the differences in their approach to work or merely the barriers that exist between these multigenerational workers.
In areas such as benefits planning, retirement support, healthcare assistance, educational programs, and technological training, it is important to consider who your systems cater to and how best they can be aided in their daily duties. Simultaneously, without mentorship programs, much of the knowledge accumulated over the years is likely to be lost to time. Ensuring that older workers are able to train the future generation of workers won’t just be beneficial to younger workers, but could also be a way for the elderly workforce to begin their transition away from employment when they are ready.
These conversations are a matter of great relevance to organizational health, and employers need to explore these unaddressed facets of the workplace at once to ensure that they aren’t leaving major operational changes to fate.
Does your organization operate with a larger proportion of older workers in the workforce? Share your experiences and management lessons with us in the comments. Subscribe to The HR Digest for more insights on workplace trends, layoffs, and what to expect with the advent of AI.
