Age and Involvement of Workers in the Labor Force^*
by: Vince Desantis and Mycroft Sowizral, Employment in New York State, Division of Research & Statistics, New York State Department of Labor

Introduction by: Susan Murray, Administrative Specialist, Wyoming Department of Employment

Periodically Research & Planning reprints full or partial articles from other states that contain issues of universal importance. With baby boomers reaching retirement age, a relatively small number of younger workers entering the job market, and unemployment rates remaining extremely low, many parts of the nation may face a continued labor shortage in the future. Employers may consider offering options such as job sharing and variable work schedules to entice older workers to stay in the workforce.

I n 1999, the [New York state] civilian labor force (persons employed and those looking for work) averaged 8,883,000 (see Table). Workers in their prime working years (25 to 54 years of age) comprised nearly 73 percent of the labor force. Generally, this age group has completed the schooling necessary to secure a job and is too young for virtually all retirement programs. At the same time, many of the people in this age group have family responsibilities, career aspirations, and home mortgage payments. For these reasons, this age group generally has a strong attachment to the labor force, the highest rates of labor force participation, and low unemployment rates.

Younger workers, those 16 to 24 years of age, comprised 14 percent of the labor force in 1999. About 42 percent of the persons 16 to 19 years of age and 68 percent of persons 20 to 24 years of age participated in the labor force in 1999. Unlike older workers, participation rates of younger workers were nearly the same for men and women. As expected, the youngest workers had the highest unemployment rates.

Many labor market observers believe that the labor market participation of older workers has bottomed out. New Yorkers over 54 years of age comprised 13 percent of the labor force. Participation rates of workers 55 to 64 years of age averaged nearly 66 percent for men and 50 percent for women. For those over the age of 64, participation was merely 16 percent for men and 8 percent for women. In 1960, by comparison, the 65 and over group had participation rates of 34 percent for men and 12 percent for women.

The increased involvement of older workers in the labor force represents the most obvious shortages. Employers having difficulty finding replacements for retiring workers may consider offering work options such as telecommuting, job sharing, variable work schedules, and worker “sabbaticals” to boost the participation of older workers and delay their retirement. Consider this: by 2020 the number of people over age 54 in the state will expand by 30 percent, while the number in their prime working years will contract by 8 percent.

^* Reprinted with permission from the June 2000 issue of Employment in New York State, a monthly publication produced by the Division of Research and Statistics, New York State Department of Labor.

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