Aging Americans are working longer in life than ever before, and for multiple reasons. The U.S. workforce is undergoing significant changes, shaped by demographic shifts, technological advancements, and evolving economic needs. Added to these trends is the possibility now of re-industrializing America, which only sharpens the focus on the workforce.
Here are some of the important elements bearing on industry’s concerns, and the role that seniors can play to help address labor and skill shortages.
Today’s Workforce and the Elderly
Several factors contribute to why Americans are choosing or needing to work beyond the traditional retirement age. Financial necessity is a primary driver, as savings may be insufficient to cover the cost of living or healthcare expenses in retirement. Additionally, the shift from defined-benefit pension plans to defined-contribution plans places more responsibility on individuals to fund their retirement, leading some to work longer. Social and personal factors, such as a desire to stay active and engaged, and to maintain a sense of purpose, also play a significant role. Longer life expectancies also play a part, where people in modern times simply haven’t aged as harshly, because of relatively easier lives.
According to data from the US Bureau of Labor Statistics, the labor force participation rate for individuals aged 65 and older has been steadily increasing over the years. As of 2020, approximately 20% of Americans aged 65 and older were either employed or actively seeking employment.
The Knowledge Drain: A Matter of Skill
As the Baby Boomer generation retires, there is growing concern over the potential loss of critical skills and institutional knowledge. This “knowledge drain” can affect industries that rely heavily on experienced workers, such as manufacturing, engineering, and healthcare. The departure of seasoned professionals can lead to gaps in expertise that are not easily filled by younger workers, potentially impacting productivity, innovation and safety.
Experience and expertise, specialized skills, mentorship, leadership, and even detailed knowledge of a specific company, are all intellectual assets that must be passed on to newer workers. As senior workers retire, transferring this knowledge to younger generations becomes crucial but may not always happen effectively.
Training and Upskilling the New Workforce
To mitigate the potential loss of skills and knowledge, organizations are implementing strategies such as knowledge transfer programs, apprentice-mentorship initiatives, flexible retirement options, and succession planning. Putting in place lifelong learning and continuous professional education and “upskilling” efforts can help ensure that workers of all ages continue to adapt to changing technological and market demands.
Challenges faced by industry attempting to renew its workforce include keeping pace with rapid technological advancements that demand new skills, which may require entirely new training programs. Within the workplace, roles typically evolve over time too, requiring workers to possess a broader range of modern skills, such as digital literacy, critical thinking, problem-solving, and adaptability.
Industry continually taps the education institutions for new talent, as well as proactively developing talent pipelines by helping design curricula that align with industry needs. But there are many shortfalls and skill shortages in the USA today, particularly in STEM fields (science, technology, engineering, and mathematics), the trades, and healthcare. The rapid pace of technological change requires ongoing learning, and there can often be a mismatch between the skills taught in educational institutions and those needed in the workplace.
The human resources scheme throughout industry now includes retention of older workers and “succession planning” for eventual retirement and passing along knowledge to younger workers. But there are many gaps in this scheme, creating opportunities for formerly retired workers to be recruited anew to aid in the skill and knowledge transfer.
Industry Seeks Older People to Work
Recognizing the dual challenges of labor and skill shortages, industries are increasingly seeking to attract or retain older workers. This approach addresses immediate workforce needs and leverages the value that older workers bring, such as experience, reliability, and mentoring capabilities. Employers are adapting by offering flexible working arrangements, part-time opportunities, and retraining programs to accommodate and appeal to older workers.
Older workers often bring a wealth of experience and expertise to the workplace, acquired over years of employment in their respective fields. This experience can be invaluable in addressing skill shortages and mentoring younger workers. Older workers too are often perceived as having a strong work ethic and being reliable, punctual, and dedicated to their jobs. Employers value these traits, particularly in industries where reliability and consistency are essential.
And, contrary to stereotypes, many older workers are flexible, adaptable, and eager to learn new skills. They can quickly adapt to changing job requirements and technological advancements (see how many are now wearing a medical alert smartwatch), which makes them valuable assets in industries undergoing rapid change. Retirees themselves may reach back to their old industry or company and find they can play a role in bridging the “retirement gap” between experienced workers leaving the workforce and new hires acquiring necessary skills.
Senior-Friendly Industries and Tasks
Industries facing acute skill shortages are particularly keen on recruiting older workers. For example, the healthcare sector, including nursing and home care, values the experience and empathy that older workers can provide. In manufacturing and skilled trades, older workers are sought for their specialized skills and craftsmanship. Education is another area where retired professionals are encouraged to return as teachers, tutors, or mentors to address teacher shortages and bring real-world experience to the classroom.
Information Technology industries are also hungry for professionals with specialized skills and experience, and with backgrounds in programming, cyber security, database administration, and project management.
Many manufacturing and engineering companies are facing a shortage of skilled workers with experience in manufacturing processes, machinery operation, engineering design, and quality control.
The construction industry is always short-handed. It requires a skilled workforce to meet the demand for infrastructure development and building projects, and despite the rigors more suited to a younger force, this industry can welcome older workers with experience in carpentry, plumbing, electrical work, and project management, among other skills.
The transportation and logistics sector today also faces challenges in recruiting and retaining qualified workers, particularly truck drivers, warehouse workers, and logistics coordinators. Older workers with commercial driving experience, knowledge of logistics operations, and supply chain management expertise are often sought after to fill these roles.
Lynn Martelli is an editor at Readability. She received her MFA in Creative Writing from Antioch University and has worked as an editor for over 10 years. Lynn has edited a wide variety of books, including fiction, non-fiction, memoirs, and more. In her free time, Lynn enjoys reading, writing, and spending time with her family and friends.
