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.