The pandemic triggered an exodus from the workplace, as many older workers lost their jobs because of the economic downturn or chose to retire. As the pandemic winds down, however, many of them are returning to work.

Although the number of retired Americans 65 and older is nearly 3 percent higher than in 2020, the number of working older adults is more than 2 percent points higher, reflecting the broader economic recovery and strong labor market conditions. Several reasons may help explain the reversal: 

• There is much more competition among businesses for workers, leading to sign-on bonuses, better benefits and more choices for job seekers. The labor market has recovered faster than expected over the past two years.
• Wages have risen accordingly, according to the U.S. Bureau of Labor and Statistics. Median weekly wages were $951 in the first quarter of 2020, compared with $1,030 in the first quarter of 2022. 
• Higher pay and rising inflation could encourage people to go back to work. Likewise, the 2022 stock market downturn could have older adults concerned about the state of their retirement savings. 

A MagnifyMoney study analyzed U.S. Census Bureau Household Pulse Survey data to examine the labor environment for older Americans, comparing data from April and May 2020 to April and May 2022. Among the findings: