Montana: State Economist on Challenge of Aging Workforce

Barbara Wagner, an economist with the Montana Department of Labor and Industry, predicts that the the aging workforce is going to be affecting Montana’s labor markets in the next few years--much sooner than other places in the country. Writing in the Big Sky Business Journal, she suggests that now is the time to plan for changes an aging workforce will bring by developing flexible worker training and adopting new workplace practices.

Montana has a median age of 39.3 compared to the national average of 36.8--the 8th oldest population in the country. In addition, the traditional working age population aged 16 to 65 is expected to start declining in Montana starting in 2012, while the U.S. population aged 16 to 65 is not expected to decline before 2030. In fact, already over 19.3% of Montana’s workers are over the age of 55 and approaching retirement.

According to Wagner, overall demographics are also going to affect job demands. Thus, an aging population will put stress on the health care sector, dramatically increasing employment needs, while a decreasing youth population could lead to a decline in educational employment. However, she notes that increased training needs could be a counter-vailing influence.

Among other things, she offers two solutions: (1) reduce the need for more workers while still growing our economy by increasing worker productivity, and (2) increase the number of workers either from in-migration of workers from other states, or by increasing labor force participation from its current level. While some of these changes will occur naturally, more will be needed in increased training programs and economic infrastructure to meet employment needs.

Source: Big Sky Business Journal "Montanans Getting Older" (January 6, 2010)

Montana: 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 Montana, the 15th state to be released in the series. Among the highlights of the report--"The Geographic Distribution and Characteristics of Older Workers in Montana: 2004":

• 14.6% of workers were 55 and older, while 3.1% were 65 and older;
• statewide, the real estate and rental and leasing industry had the highest proportion of or workers 55 and older, with 22.9% of its workers in that age group, with the transportation and warehousing industry following with 20.9%; and
• the state's health care and social assistance industry employed the greatest number of older workers, with about 18.1% of the workers 55 and older being in that sector.

Source: U.S. Census Bureau Longitudinal Employer-Household Dynamics What's New (September 8, 2008)