In 2007, the United States' economy crashed, which affected many people. As a result, the unemployment rate within the U.S. has risen, with people over the age of 50 are facing record unemployment for their age group. For the sake of this article, the older generation refers to the age group of people that are 50 or older, often known as the Baby Boomers. There are several reasons as to why the older generation has been affected so much.
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“Employers are clearly reluctant to hire older workers” says author Richard Johnson. “Many are concerned that older workers are more expensive than younger ones, that they lack up-to-date skills, that they won’t be around long enough to justify the cost of hiring and training them. These concerns are mostly unfounded, but they’re widespread. If that’s not outright age discrimination, it certainly comes close.”
Age discrimination
People in the United States are able to retire around the age of 60. The retirement plan which is often referred to as Social Security allows Americans to stop working and replaces the previous salary they were receiving at their jobs. However if a person is laid-off before he or she reaches the age of retirement, he or she can use part of his or her retirement plan early and thus have a lower amount available for his or her later years.
According to studies, over the past few years the poverty rate for the group of people that range from 55–64 years old has increased from 8.6 to 9.4, which is the second largest increase for that group since August 1983. One of the reasons that caused this increase in the poverty rate in the older generation is because they are oftentimes discriminated against by companies because of their age. Many companies find the older people as a group act as more of a cost than an asset to the company. Most companies choose to offer health care and insurance to all of their employees. The older generation workers often require more benefits from the company due to their age. One worker at the age of 58 who was a two-time cancer survivor and also had fibromyalgia was laid-off and replaced with a younger girl that was half her age. Although the woman couldn’t prove it, she believed that she was fired and replaced because of her age and the costs that the company incurred by having her as an employee. As a result, because older people are more likely to have health concerns and issues, they are many times the first to be cut from a company. While many age discrimination claims have been filed and have increased drastically, they are very hard to prove and charge against a company.
Studies
One researcher decided to make an experiment to test if age discrimination actually exists. For the experiment she created 4,000 mock female résumés and sent them to different companies throughout Boston, Massachusetts as well as St. Petersburg, Florida. Each résumé included the date that the fictitious applicant graduated from high school which indicated the age of each person to the company. The ages of each applicant on the résumés ranged from 35 to 62 years old. The results of the study showed that a younger person was 40 percent more likely to be hired than an older applicant of 50 years or older at the designated companies. As a result, the study proved that companies do often age discriminate against specific groups, especially the older generation.
Another study found that it is not uncommon for employers to use stereotypes to rationalize discriminating against hiring elderly workers. The first of which is the employees’ salary expectations. If an older worker had a job before that had a higher salary, then he/she might keep looking for another job that has a high salary, so hiring him/her is a waste of time to the company. A second reason is that the elderly worker often will have a younger boss, so employers think that the older employee will not be satisfied working for someone who is younger or less experienced.
"People don’t like old people; it’s as simple as that. They are too comfortable and they don’t know new things" says a lawyer that specializes in age discrimination cases.
Causes
There seems to be many reasons for the abundance of older workers. People are living longer because of healthier lifestyles and advances in medicine. People are working longer because the mandatory retirement age has been eliminated, the recent poor economy has diminished savings and there has been a decline in benefit retirement plans. There are other reasons that the older generation is having a difficult time finding work after being laid-off. Most of the people in this age group had worked for specific companies for many years, and they may in fact had been the first and only jobs that the people ever had. As a result, the older people are likely to have less optimal job-seeking skills since they haven’t had to search for one in many years. Also, as the years have passed, companies have turned to more efficient means by offering applications only online. However, while the current generation relies on technology, many of the older people are used to applying on paper applications. As a result they may find it difficult to use a computer, searching for hiring positions as well as applying online.
Because many of the people in the older generation are less likely to have skills on the computer, their technological inabilities also hold them back from being hired. As the years have passed, many companies have begun to focus using the internet and other programs on the computer, making it more likely they will hire a younger worker that is capable of using technology over an older person that doesn’t know how. This lack of knowledge means that companies would have to provide more training for the elderly person than they would often have to provide for a younger employee. This can be costly and time consuming for companies. Older adults often resist the use of computers for various reasons, such as impaired eyesight and hearing, arthritis and other physical ailments, and reduced cognitive skills, including memory loss and short attention spans, which make surfing the Web more challenging. Learning how to effectively utilize new technology for the elderly can be more demanding due to the fact that learning new skills is stressful both mentally and physically.
The unemployment issue among the older generation not only creates problems for the specific age group, but it also causes policy issues around the nation. The government makes decisions on how to solve the crisis because with this group of people out of work, the older generation is unable to be self-sufficient during a large part of their adult life; a time when they are more likely to have health issues. Also, these people are nearing the time when they will no longer be able to work, and may not be prepared or have the financial means to take care of themselves. As a result, policy makers must try to solve the issue of unemployment by creating more jobs. However, they also must try to create a policy that offers benefits for the older people that are unemployed because they are more likely to be unemployed longer than others.
Benefits
Though companies may be reluctant to hire an elderly person, there are many benefits for an elderly person to have a job and be working. One benefit is that having a job can help decrease the mortality rate within the elderly. In addition to living longer, one study found that the elderly that worked part-time had higher life satisfaction.
In addition to the elderly benefiting from working, the companies employing elderly workers can also have several benefits. One study found that workforce professionals had stronger moral and ethical aptitudes, placed a greater importance on work in their lives, and disliked wasting time, more so than those of college students that were new in the working world. In comparison to younger workers, elderly workers were found to be safer, have less counterproductive work behaviors, less work place aggression, less likely to abuse substances on the job, and less likely to be tardy to work. Elderly workers also tend to be more loyal to a company and are able to use their previous work experience to help develop products, processes, and different approaches that help with organizational competitiveness.
Solutions
A common solution to become qualified for more jobs and have more opportunities to exit unemployment is to go back to school, whether that is high school or college. Many of the older people do not have a complete high school or college education; therefore, and as a result they do not have the correct training for many jobs that are currently available. However, many older people have found that returning to school would force them to incur more costs than they would if they didn’t go back to school. Taking a class at a local college could cost several thousand dollars. If a person is only a few years away from reaching the age of retirement, they may find it less costly to endure a poor standard of living for a few years and then get their Social Security instead of using part of their limited resources for classes that may never offer them any aid. Another solution for the older generation to become qualified for more jobs is to take instructional courses on how to use computers. Instructional courses may need to incorporate varied instructional styles such as introducing new material and building on prior knowledge by using direct instruction followed by opportunities to integrate and practice new information. Instructors must understand how to best deliver instruction to senior learners in order to provide effective, engaging instruction. Ideal learning environments are ones that are flexible and sensitive to the needs of the senior learner. Once older people gain the skills to use a computer, they will have a greater chance of being hired for a job. An alternative solution is to move to areas of the country that have a better job market. However, older people are more likely to own more assets such as land and their houses. As a result, it would be more difficult and possibly less beneficial for an older person to move and leave these behind.