Jobs Report

For Older Workers, the Fastest Growing Occupations Leave 14% Claiming Food Stamps

September 7, 2018

Older Workers at a Glance...

  • 3.1% U-3 Headline Unemployment
  • 7.9% ReLab's U-7 Inclusive Unemployment
  • $912 Median Real Weekly Earnings
  • 15% College-Educated Older Workers in Low-Paying Jobs

August 2018 Unemployment Report for Workers Over 55

August2018 Jobs ReportThe Bureau of Labor Statistics (BLS) today reported a 3.1% unemployment rate for workers age 55 and older in August, which represents no change from July. Although the economy is still expanding, the fastest-growing job sectors for older workers pay wages so low they claim food stamps.click

Most of the job growth for older workers is in unstable or low-paid jobs, including jobs in the home health and personal care aid sectors. From 2016 to 2026, the economy is expected to add 11 million jobs, an increase of 7.4%. In contrast, the home health and personal care aid sectors will add almost 1.2 million jobs, an increase of 43%. In 2008, workers 55 and older made up approximately 25% of home health and personal care aides. Today, they represent a third.*

At just $23,200, the median wage for health and personal care aides is below the national average of $31,100. Their wages are low enough that 14% of older workers employed as health and personal care aides claim food stamps, compared with 4% of all older workers.

Aiming to curtail public subsidies to employers who pay low wages, U.S. Senator Bernie Sanders and U.S. Representative Ro Khanna introduced legislation to recapture from companies every dollar their workers receive in public assistance.

In the meantime, the growth of low-wage work for older workers leaves many near-retirees unable to afford food, let alone save for retirement. Expanding Social Security and creating Guaranteed Retirement Accounts (GRAs) will ensure older workers are not stuck in low-wage jobs because they can’t afford to retire. GRAs allow workers to save in safe, efficient investment vehicles over their lifetime.

*Authors' calculations using Bureau of Labor Statistics (BLS) and Current Population Survey (CPS).


Unemployment Rates June 1 Job Report updated


Long Term Unemployment June 18


less than 15 April 18


Earnings area April 2018 updated2


  

 No Pension Area Feb 18 updated

 

About SCEPA

SCEPA works to focus the public economics debate on the role government can and should play in the real productive economy - that of business, management, and labor - to raise living standards, create economic security, and attain full employment.