How Are Employers Responding to an Aging Workforce?
The American population is aging and changes in the population’s age structure are leading to an aging of the nation’s workforce. In addition, changes to age specific participation rates are exacerbating the aging of the national labor force. An important challenge for firms and organizations is how does workforce aging affect labor costs, productivity and the sustainability of the organization. This paper examines employer responses to workforce aging including changes retirement policies, modification in working conditions, the adoption of phased retirement plans, and reforming other employee benefits.
The analysis described in this paper is based on a study funded by the Sloan Foundation through the NBER. We would like to thank all of the participants in the October 2019 workshop held at NBER. Their comments and information concerning workforce aging at their organization provide important information on how employers are responding to the aging of their workforce. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.