Older Workers Report

Women are the Majority of Workers in 7 out of 10 Low-Paying Jobs for Older Workers

November 4, 2016

Older Workers at a Glance...

  • 3.7% U-3 Headline Unemployment
  • 10.9% ReLab's U-7 Inclusive Unemployment Rate
  • $952 Median Real Weekly Earnings
  • 70/59% Male / Female Labor Force Participation
  • 27% in Low-Paying Jobs
  • 53% Without a Pension

October 2016 Unemployment Report for Workers Over 55

The Bureau of Labor Statistics today reported an unemployment rate of 3.7% for workers aged 55 and older in October. However, the unemployment rate fails to reflect the increasing concentration of older workers in low-wage service jobs.

Women are in the majority of low paying jobs for older workers

First, older workers are more likely than younger workers to be in low-wage jobs. A low-wage job pays less than two-thirds the median wage, or $539 per week. In September, 27.1% of full-time workers aged 55 and older were in low-wage jobs compared to 19.0% of younger workers.

Second, the share of older workers in low-wage jobs has increased over time, while the share for younger workers has stayed the same. The September share of older workers in low-wage jobs, 27.1%, is 1.4 percentage points higher than the share ten years ago (25.7%).

Third, women are the majority of workers in seven of the top 10 low-wage jobs for older workers, primarily service occupations. They make up more than 75% of older workers in four of the top ten jobs, despite being a minority of older workers.

Older workers in low-paying service jobs face extra difficulty saving for retirement. This may be a particular problem for older women workers who are unlikely to have access to a retirement plan. Living paycheck to paycheck, even those with coverage have little room to cut consumption to increase retirement savings.

To enjoy a secure retirement, low-wage workers need a retirement plan, not a low wage job. The need is becoming ever more pressing as the Social Security Full Retirement Age is increased, equivalent to a cut in benefits for those who do not delay retirement. Guaranteed Retirement Accounts (GRAs) supplement Social Security in combating old-age poverty by providing all workers a retirement savings vehicle with low fees and guaranteed growth, allowing even low-wage workers a path to secure retirement.

  


Unemployment Rate


Median Weekly Wages for Older Workers


Labor Force Participation for Older Workers


Low Paying Jobs for Older Workers


Older Workers without a Pension

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.