The average time older workers spend looking for a job is 34.6 weeks, compared to 23.4 weeks for younger workers. (Photo: Shutterstock)
It's an oft overlooked economic tragedy: millions of older Americans are unemployed, underemployed or stuck in low-paying jobs that offer them little hope of retirement.
A recent feature by the Wall Street Journal shed light on the plight of seniors who find themselves toiling for low wages in what are supposed to be their golden years.
The older that unemployed workers are, the harder it is for them to regain their previous job status. Those over 56 earn 27 percent less in a new job after being unemployed for more than a month, according to a study by David Wiczer, an economics professor at Stony Brook University. In contrast, the typical worker under 30 gets a 7 percent boost in pay when they land a job after a period of unemployment.
Older unemployed workers tend to have a harder time finding work altogether. Thirty-one percent of the unemployed over 55 say they have spent at least 27 weeks seeking employment, compared to 24 percent of those under 55.
More striking, the average time older workers spend looking for a job is 34.6 weeks, or more than eight months. Among younger workers, the average time spent is 23.4 weeks, or under six months.
The employment challenges for older workers are made more stressful by the fact that many of those employees don't have savings or pensions to count on. In 1992, a third of workers 55-64 had defined-benefit pensions. Now only 17 percent do.
In the midst of a tight labor market, however, some employers see an opportunity in recruiting underappreciated older workers.
In Michigan, the AARP partnered with the Southeast Michigan Community Alliance to hold a job fair for those over 50. Neogen, a food and animal safety company based in Lansing, Mich., has connected with future employees through the events. Julie Haak, Neogen's director of human resources, tells the Journal that the labor pool has challenged the company to take a different approach to recruiting.
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