Jobs Report

52% of Older Workers Forced into Involuntary Retirement

October 5, 2018

Older Workers at a Glance...

  • 2.8% U-3 Headline Unemployment
  • 6.3% ReLab's U-7 Inclusive Unemployment
  • $912 Median Real Weekly Earnings
  • 15% College-Educated Older Workers in Low-Paying Jobs

September 2018 Unemployment Report for Workers Over 55

September 2018 Jobs Report

The Bureau of Labor Statistics (BLS) today reported a 2.8% unemployment rate for workers age 55 and older in September, a decrease of 0.3 percentage points from August.

Despite the low headline unemployment rate, many older workers leave the workforce involuntarily. click

Older workers often need to continue working to make up for inadequate retirement savings due to lost pensions and inconsistent employer contributions. Yet, from 2008 to 2014, at least 52% of retirees over 55 left their last job involuntarily, the result of job loss or a deterioration in health.

Those pushed into retirement early face barriers to returning to work. They are likely to be unemployed longer than younger people, and when they find a job they will earn on average 25% less than their previous salary.

Working longer is not a solution to the retirement savings crisis. Workers cannot rely on being able to work until they are ready to retire. Those who have inadequate retirement accounts and leave the workforce involuntarily are at risk of being downwardly mobile and falling into poverty.

To ensure people can retire when they need to without experiencing deprivation, we need to strengthen Social Security and create Guaranteed Retirements Accounts (GRAs). GRAs are universal, secure retirement accounts funded by employer and employee contributions throughout a worker’s career paired with a refundable tax credit. Together, these proposals would allow all Americans access to dignified retirements after a lifetime of work.

*Arrows next to "Older Workers at a Glance" statistics reflect the change from the previous month's data for the U-3 and U-7 unemployment rate and the last quarter's data for the median real weekly earnings and low-paying jobs.


Unemployment Rates June 1 Job Report updated


Long Term Unemployment June 18


less than 15 April 18


Earnings area April 2018 updated2


Share of workers age 55 - 64 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.