Retirement & Financial Planning Report

The general perception of older workers as being less productive than their younger colleagues is a misnomer in many ways, according to a study that suggests that employers should not be reluctant to keep or hire those more advanced in their careers.

“There are two main reasons for the surge in older workers. First, the sheer size of the baby boom generation means that the number of Americans attaining age 60 each year is climbing steeply. Second, labor force participation rates among adults between 60 and 74 have increased,” said a report from the Center for Retirement Research.

It added: “The expectation that older workers will reduce average productivity may be fueled by the perception that the aged are less healthy, less educated, less up-to-date in their knowledge, and more fragile than the young. While all these images of the elderly are accurate to some degree, they do not necessarily describe the people who choose or who are permitted to remain in paid employment at older ages.”

It said that there are major differences in workforce participation by educational level that must be considered in assessing the impact of continued work. In sum, more educated employees tend to continue working longer, with for example nearly 60 percent of males with doctoral and professional degrees still in the workforce in the 62-74 age range, compared with only 20 percent of male high school dropouts in that age range.

More highly educated workers tend to be more productive and for longer periods, it said. “If less productive workers selectively exit the workforce at younger ages, the average productivity of the older workers who remain may compare favorably to the average productivity of the young. A surge in the percentage of the potential workforce that is old may simply increase the proportion of the workforce that consists of comparatively skilled older workers.”