Study Shows More Californians Working Longer

According to a report issued by the California Budget Project, employment rates of Californians at or near retirement age continued to rise even during the economic downturn. Specifically, in 2008, 63% of people age 55 to 64 were employed, up from 58.4% in 2000 and 54.8% in 1995 after having been fairly stable before then (1995 was just up 1.2% from 1979). For older workers, those 65 to 69, 29.7% were working in 2008, up from 22% in 2000.

When looking at the numbers on a gender basis, the Budget Project found that the trends for men and women aged 55 to 69 varied. While about half of women are still working, a figure that has climbed steadily from 32% in 1979, the percentage of working men declined from 58% in 1979 to 51% in 1995, then rebounded to 60.7% in 2008.

Looking more closely at the current economic downturn, older workers have been increasing their participation rates while they drop for younger workers. Thus, the share of Californians age 55 to 64 who were employed increased by 0.9% between 2007 and 2008 (from 62.1% to 63%) and the employment rate of Californians age 65 to 69 rose by 4.5% (from 25.2% to 29.7%), while the share of Californians age 25 to 54 who were employed declined by 1.2% 2007 and 2008.

Sources: California Budget Project Policy Points (April 2009); San Jose Mercury News "More Californians working later in life, especially women" (April 7, 2009)

California: Census Bureau Issues Profile of the Older Worker

In a continuation of its partnership with 31 states on a series of reports on workers 55 and older, the Census Bureau has released its report on California, the 28th state to be released in the series. Among the highlights of the report--"The Geographic Distribution and Characteristics of Older Workers in California: 2004":

• 13.3% of workers were 55 and older, while 3.1% were 65 and older;
• statewide, the educational services industry had the highest proportion of or workers 55 and older, but no industry had 20% or more of its workers in that age group; and
• the state's manufacturing industry employed the greatest number of older workers, with about 13.6% of the workers 55 and older being in that sector.

Source: U.S. Census Bureau Longitudinal Employer-Household Dynamics What's New (January 26, 2009)

Civic Ventures Report Highlights State Initiatives on Capturing Boomer Energy

A report issued by Civic Ventures shows that leaders of several state governments are taking the initiative to develop policies and programs that make the best use of boomer experience. The report--"Building an Experience Dividend: State Governments Lead Call to Engage Boomers"--focuses on developments in five states:

• Arizona and its Mature Workforce Initiative to develop policy recommendations and launch new programs, such as a certification program given to businesses deemed "mature-worker friendly."
• California, whose eServices offices focus on matching boomers’ desire to serve with specific labor shortages, such as the demand for math and science teachers and qualified managers in the public sector.
• Maryland, which enacted a Baby Boomer Initiative Act in 2007, creating the Boomer Initiative Council, which is tasked with developing a strategy to keep boomers engaged in their communities through work and volunteer opportunities.
• Massachusetts, whose governor has called for the creation of a Commonwealth Corps to give residents new opportunities to make significant commitments to service and in which legislation
  is being advanced that would create a Mature Worker Council.
• New York, where a package of eight bills has been introduced that are hoped will jumpstart the state’s efforts to prepare for an aging workforce.

In addition, eight states are participating with the National Governors Association and Civic Ventures in a year-long program to find ways to tap skills of older workers.

Source: Civic Ventures News Release (February 7, 2008)

Additional Source: USA Today "No time to relax: States want new retirees' experience" (February 22, 2008)

Corporations and Universities Helping Train Older Workers for New Careers

Writing in U.S. News and World Report, Kim Clark reports on the rising demographic tide of older students in universities, as a growing number of colleges, charities, companies, and governments are accommodating and encouraging adults who return to the classroom.

Among other things, Clark tells about an IBM prgorma, launched in 2005, that pays older staffers interested in becoming science or math teachers up to $15,000 apiece for tuition and time off for student teaching. This program is now being emulated in California with the establishment of EnCorps, which relies on partners in the commercial sector to recruit, train, and prepare retiring employees to pursue alternate careers as math and science teachers.

While IBM has, more recently, extended its program to pay for training older workers who want to "retire" into other public-service jobs, other employers are focusing more dollars on educating older workers in an effort to keep them from retiring. Thus, for example, Clark writes: "United Technologies Corp. is paying for all tuition and up to three hours off a week for any accredited college class. What's more, older students who get a degree are given a graduation present of $10,000 in utc stock."

Source: U.S. News & World Report "Heading Back to College Universities are doing more than ever to attract older students" (October 26, 2007)

United States: Aging Farm Workforce and Immigration Reform

"A labor shortage is already hurting Imperial Valley farmers, but an aging work force in the fields suggests the problem could become much more severe if something isn’t done soon," reports Nick Taborek. Writing for the Medill Reports, he notes that immigration legislation before the U.S. Congress could help boost the labor supply but that some farm advocates suggest that only allowing temporary workers will not help long term.

He reports that Eric Reyes, a farm worker advocate in the Imperial Valley, finds that fewer young adults are opting for the long hours and strain associated with farm work, with the average age of a farm worker being now over 50 years old. In addition,
Ayron Moiola, executive director of the Imperial Valley Vegetable Growers Association, says “You’re not seeing a younger generation take their place.”

With respect to immigration reform,

Reyes said farmers hoping to attract a younger workforce for years to come should push for a bill that grants all new workers an attainable path to citizenship. If farm workers entering the U.S. are only given temporary visas, he doubts that the labor shortage will disappear.

Mark McBroom, a citrus farmer in the Imperial Valley, said there may be no clear-cut solution to the aging workforce in the fields. Rather, the trend for younger workers to shun farm work may be simply a sign of the times.

Source: Medill Reports "Farmers fret over aging workforce in the fields" (May 21, 2007)

More Californians Are Working At or Near Retirement

A California Budget Project (CBP) report shows that Californians are working later in life than they once did. The share of Californians approaching or at the traditional retirement age--age 65 and older--who are employed increased considerably between 1995 and 2006, after a decade and a half of little change.

According to the CBP's Policy Points, “More Californians Are Working Later in Life”, this trend reflects a number of factors, including improved health and longer life expectancy, as well as diminished retirement security. While both financial and non-financial factors motivate people age 55 to 70 to work, the need for money was the most frequently cited reason for working among those in their late 50s and early 60s.

Source: California Budget Project Press Release (April 2, 2007)

California: State Agriculture Must Develop Stable Workforce

Adressing a general session of the California Farm Bureau Federation's Annual Meeting, Victoria Bradshaw, secretary of the California Labor and Workforce Development Agency, told the federation that one of the major challenges that lies ahead in the area of labor is developing a stable agricultural workforce in California and that, unless California's farmers and ranchers do not build careers and vocations in agriculture, they will be left with an aging workforce and not a replenishing workforce.

"Supply has been a major challenge in the last couple of years. One of the reasons agriculture is having a problem is not any different than a lot of other industries," Bradshaw said. "For agriculture though there is a major competitor out there and that is the expanding construction industry. It is growing at a very rapid pace, some in the infrastructure, some in residential housing, but there is a huge demand for labor and they are offering higher wages and long-term employment."

Another challenge she highlighted is training people to work in agriculture. Unless California's farmers and ranchers do not build careers and vocations in agriculture, Bradshaw said, they will be left with an aging workforce and not a replenishing workforce.

Source: California Farm Bureau Federation News Release (December 13, 2006)

Industry News: Aging Workforce Hits Pest Control Advisers

The aging workforce is hitting another industry, this time suggesting that the "graying of America is on a collision course with the feeding of America." Harry Cline, writing in the Western Farm Press reports that members of the Western Plant Health Association heard recently that this network of state-licensed Pest Control Advisers--who monitor and recommend pest control measures--are mostly baby boomers facing retirement and that there are few young people now in the profession to replace them.

Terry Stark, executive director of the California Association of Pest Control Advisers, said a survey of CAPCA’s 3,100 members revealed that almost 40 percent of its members are over 55. Only 17 percent are 44 or younger. Thirty-five percent are 45 to 55.

Twenty-five percent of CAPCA members have more than 30 years experience. Over half have more than 20 years of experience.

While suggestions include promoting and rewarding teamwork and an open-door to management, emphasis was placed on college recruiting and introducing young people to California agriculture in high school and elementary schools.

Source: Western Farm Press "Pest control adviser workforce aging, dwindling" (October 31, 2006)

California: Nevada County and Cities Faces Exodus of Older Civil Servants

Brittany Retherford reports in The Union that Nevada City, California, could lose half of its full-time workers to retirement by 2010, that Grass Valley could see 30% retire by 2008, and that Nevada County, the largest employer in the area, stands to lose the most, as 50% of its nearly 1,000 employees were already eligible to retire by the end of 2005. According to Gayle Satchwell, the county’s human resource director, the county has been preparing for the past two years, readying employees with skills to ease into possible promotions and encouraging longtime employees nearing retirement to store their knowledge in manuals and computer programs to be able to be passed down after their departure.

Source: "County work force ages" The Union (February 7, 2006)