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Some facts about today's labor force

Americans have left the labor force at earlier ages than in the past. Male labor force participation has declined at all ages over time, but particularly for those in their early 60s. Less than one-half of men ages 62 to 64 were in the labor force in 2001 compared with 88 percent of men ages 45 to 54.

At the same time labor force participation for older women has increased, although it still remains below the rates for men. Between 1970 and 2001, the percentage of women ages 60 and 61 that worked outside the home increased from nearly 41 percent to nearly 50 percent.

At a time when large numbers of men were leaving the labor force for retirement or disability, more women than ever were becoming active participants in the paid labor force, in part because of increased opportunities.

Participation in paid work is still uncommon past age 65. Those who continue to work past age 65 tend to be self-employed. They may lack pension benefits and may continue to work out of economic necessity, but their work experiences may also be more highly valued than that of other workers.

Older workers are also those who have made large investments in education—such as physicians or lawyers. And older farmers are over-represented in the workforce since fewer younger workers are entering agriculture. e

Source: "Elderly Americans," by Christine L. Himes, Population Bulletin by the Population Reference Bureau

Retirement. That's a word that can put a smile on the face of many. The golden years. Time for travel, playing with grandchildren, pursuing passions. While those dreamy-eyed visions of retirement persist and are even perpetuated in our society, the reality is often very different. In fact, trends show that baby boomers will likely work longer than their parents did.

Even as far back as the 1930s, workers entertained the notion of "retirement." But even those who did retire often died shortly thereafter. By the late 1980s, public and private retirement plans gradually provided for both earlier and later retirement ages. And the introduction of Individual Retirement Accounts (IRAs), allowed people to access retirement savings by age 59-1/2.

Congress also had a hand in encouraging later retirement with passage of the Employee Retirement Income Social Security Act of 1974 (ERISA) and the Age Discrimination in Employment Act of 1967, which both provided protection of employee benefits and classes.

According to the University of Michigan Health and Retirement Study, boomers say they are going to work longer. But they also say that making money isn't their only motivation for working—they also want to continue to contribute to society while engaging in travel and other hobbies.

"Most of us are lucky enough to choose retirement," says John Haaga, director of domestic programs for the Population Reference Bureau in Washington, D.C. "More and more older people are living better, happier lives. However, many may have significant health problems that can lead to catastrophic medical expenses," says Haaga.

People are working longer because they are living longer. Many don't want to sit back at Sun City, but they want to stay active and alert and to continue to be a valuable contribution to society, agrees Lari Braun, human resource director at the Leading Edge accounting firm of Henry & Horne PLC in Tempe, Ariz. "Successful companies need to be attuned to this mentality."
 

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