As the U.S. population ages, so does its workforce. A recent report from the Employee Benefit Research Institute (EBRI) reveals a significant shift: in 2023, 29.5% of the workforce was aged 65 or older, up from 23% in 2000.
This trend aligns with increased labor force participation among Americans aged 55 to 64, surpassing pre-pandemic levels, while the participation rate for those 65 and older remained stable. Craig Copeland, EBRI’s director of wealth benefits research, notes, “The movement of the Baby Boom generation out of the younger age groups has made the older workforce even older.” He also highlights the growing diversity among older workers, with a declining share of White Americans in the 55+ demographic.
Employers need to adapt to these changes, considering new or revised employee benefit plans to accommodate an aging and more diverse workforce.
Key findings from the report include:
- Men Ages 60-64: Labor force participation increased in 2022 and 2023.
- Men Ages 75+: Participation fell during the same period.
- Women Ages 55-59 and 70-74: Saw participation increases, while those 60-64 saw a decrease in 2023.
- Overall Trends: The labor force share of men 55+ decreased in 2023 after peaking in 2022. For women, the share has generally declined since 2010 but saw a slight increase in 2023. Despite this, the female share of the 55+ labor force remains higher than in the late 1990s.
Labor force participation among those aged 70 to 74 in 2022 and 2023 did not reach pre-pandemic levels seen in 2019 but did surpass pre-pandemic levels among the 55-64 age group. Conversely, participation rates for those 75+ and 65-69 declined in 2023 compared to previous years.
Demographically, Hispanic Americans now have the highest labor force participation rates among older age groups, surpassing Black and White Americans, a reversal from 2000 when they had the lowest participation rates. White Americans, previously leading in this metric, now have some of the lowest participation rates compared to Hispanic and Black Americans by 2023.
The data for this report was sourced from the U.S. Census Bureau’s Current Population Survey, sponsored by the U.S. Bureau of Labor Statistics.
For employers, understanding these shifts is crucial in designing benefit plans that meet the needs of an aging and increasingly diverse workforce.