Shifting Workplace Demographics and Delayed Retirement

Since the mid-1940s the U.S. population has experienced several age "bubbles," or demographic shifts, all resulting from a disproportionately large segment of the population moving through their life stages. The magnitude of the baby boom population—the 76 million Americans born between 1946 and 1964—has created significant changes affecting the construction of schools, the birth of new communities and the creation of new jobs and industries. As the boomers came of age, colleges expanded and enrollments soared, creating a highly educated workforce, swelling the consumer population that drove the economic growth of the '80s and '90s.

Amplifying this boomer effect is the increase in life expectancy. Since 1900, the average life expectancy has increased from 47 years to 77 years.² As people live longer, they also are likely to experience more age-related changes in their vision, hearing and dexterity, which can affect their capacity to use and interact with computing devices and environments.

As society has benefited from higher life expectancy and improved medical care, many people now need to work longer. Changes in savings, government policies, the economy and the structure of pension plans are all fueling a trend for many Americans to delay retirement and for many retirees to re-enter the workforce.

Since 1980, the number of U.S. workers over the age of 40 has increased significantly. By 2010, more than 51 percent of the workforce is expected to be 40 or older, a 33 percent increase since 1980, while the portion of the workforce aged 25 to 39 will decline 5.7 percent.³ At the same time, the median age of U.S. workers has continued to rise and is expected to increase by six years, from 34.6 to 40.6, by 2010. The number of workers aged 55 and older will grow from 13 percent of the labor force in 2000 to 20 percent in 2020.⁴

Labor Force Above the Age of 40

Due to the sheer magnitude of the baby boomer influence, increasing numbers of workers are leaving the workforce because of death, disability and retirement.

Although people are retiring in greater numbers, there are many workers who need to remain employed. AARP reports that 69 percent of employees over the age of 45 plan to continue working past 65.⁶ Americans are now staying in their jobs longer or, when downsized, finding new jobs, changing careers or becoming self-employed. The economic recession that began in 2001 is causing many retirees and "preretirees" to re-evaluate their plans and their lifestyles. Many are foregoing trips and major purchases, while others are shifting leisure activities to accommodate full- or part-time employment. Based on a July 2002 poll by the Gallup Organization, 46 percent of working adults expect to retire later due to the recent stock market decline.⁷ Along with the need to restore their diminished savings, however, AARP reports that 65 percent of those over 45 cited health insurance and coverage for prescription drugs as key reasons for remaining employed.

Meanwhile, fewer younger workers are entering the workforce. According to the Employment Policy Foundation, the workforce will experience a shortfall of 7.4 million baccalaureate degree holders by 2012.⁸ Left unaddressed, these workforce shortages threaten to stifle economic growth while likely increasing wages in high-demand occupations.

Computer skills are playing an ever-increasing role in the employability of workers. As baby boomers work into their later years, they will need to continue to embrace and invest in new skills and technologies to remain employable. The National Bureau of Economic Statistics has determined that employees who keep current on technology and computer skills retire later than those who don't use computers.⁹ These findings revealed that computer usage is remarkably similar for employees aged 16 to 69. The conclusion is that workers acquire skills as they are needed, long after they graduate from college. This dispels the myth that older workers are either unwilling or unable to learn emerging technologies and adapt to their rapid rate of change. As workers delay retirement, the need for them to invest in technology-related skills will increase, along with the need for accessible and assistive technologies. This research provides validation for offering supplemental computer training to older workers, to maximize their computer use and develop expertise with new applications and online methodologies.

Information in this section is excerpted from the report, "The Convergence of the Aging Workforce and Accessible Technology: The implications for commerce, business, and policy"