Changing Workforce: Employees Over 55 Will Make Up 25% of US Labor Market by 2031

By 2030, the number of jobs shifting to workers older than 55 will reach 150 million worldwide, nearly equal to the entire working population of the U.S. and 10 percentage points higher than in 2011, according to a study from Bain & Co. 

Fewer young people have joined the workforce in the last two decades, and while early retirement has long been the trend, it is now slowly going into reverse, the researchers noted. Among American workers, 41% now expect to work beyond age 65, compared to 12% three decades ago, a trend that will push the percentage of U.S. workers older than 55 to 25% in 2031 from 18% in 2021, according to Bain.  

This shift will have implications for employers—and the benefits consultants and advisers who work with them—and require them to consider the unique needs of this cohort of employees, Bain stressed in its report. 

“There was an increase in retirements in some countries during the peak-Covid Great Resignation, but that moment is now looking more like the Great Sabbatical as those workers increasingly return to work,” James Root, a partner in Bain and co-chair of the firm’s Bain Futures think tank, said in a statement. “People work longer into their lives, yet we’ve found it rare to see organizations put programs in place to fully integrate older workers into their talent system.” 

As workers approach retirement, they tend to take on more part-time and self-employed positions. However, research shows this does not indicate a lack of commitment. Older workers expressed more loyalty to their companies, as well as higher satisfaction in work and life.  

However, few firms have recognized the evolving needs of experienced workers, according to the researchers. In the U.S., older workers received training less often than their younger counterparts.  

“With the right tool kit, aging workers can help employers get ahead of their talent gaps and create high-quality jobs that turn older workers’ skills and experience into a competitive advantage,” Andrew Schwedel, a Bain partner and co-chair of Bain Futures, said in a statement. “Companies that invest in recruiting, retaining, reskilling, and respecting the strengths of this group will set themselves up for success as the demographics of the workforce continue to shift.” 

The Bain report suggested that to attract and retain older workers, employers should understand their motivations. While workers under the age of 60 are primarily driven by compensation, their older counterparts prioritize having an interesting job that provides autonomy and flexibility. They are more focused on mastering their craft and mentoring others to do the same.  

Reskilling older workers for the next 10 years is also important, the research noted, particularly for the latest technology. For workers between the ages of 55 and 64, almost one-quarter (22%) said they needed more tech skills. 

The research in Bain’s recent study, “Better with Age: The Rising Importance of Older Workers,” surveyed 40,000 workers across 19 countries.