COLORADO ’ S FUTURE :
The Impact of an Aging Workforce
There ’ s No Quick Fix For Current Hiring Problems , But More Flexible , Adaptable Employees And Teams Could Play A Role .
In the coming years , mature and older workers will play an increasing role in Colorado ’ s workforce . Between 2010 and 2040 , the category of Coloradan workers over the age of 54 is expected to grow from 1 in every 5 workers , to nearly 1 in every 4 . Although Colorado is not unique in facing this changing dynamic , the impacts of the pandemic and the continued labor force shortages have only sharpened the focus of needing a sea change approach to both public and corporate policy to harness the full benefits of the aging workforce .
As a result of the COVID-19 pandemic , Colorado is facing an even more significant labor shortage . While the state has struggled to find enough skilled workers for several years , there are more than 149,750 job openings according to Connecting Colorado , a partner of the Colorado Department of Labor and Employment . To meet the labor demands , Colorado must retain and hire skilled workers , especially mature and older workers who are willing and able to work but struggle to find a job or stay employed because of their age .
Projections from the Bureau of Labor Statistics from October 2021 , estimate that the labor force participation rate ( LFPR ) for Americans over the age of 65 are expected to grow , including an increase of 6 percentage points in the LFPR for individuals 65 to 69 . This is a much larger increase than the projected 2.8 percentage point increase for workers 55 to 59 . Adding to this picture is inflation running at the highest point in forty years , which will undoubtedly figure into older workers ’ decisions to remain employed , retire , and for those who have left the labor force , to re-enter the labor force . Older workers whose income is based on social security , fixed annuities , and retirement savings will be incentivized to go back to work to offset the reduced purchasing power due to high inflation .
Workers 65 years and older will grow by about 150,000 between 2019 and 2040 . Colorado is catching up to the national trend of an aging workforce , driven by increased lifespans and preferences to work longer , combined with a smaller cohort of younger workers coming up behind . By 2034 , it is projected that older adults will outnumber children for the first time in U . S . history as all baby boomers will be 65 years or older by 2030 The effects of the pandemic on the mature workforce have been especially pronounced for workers 65 years and older . The overall Colorado labor force participation rate has rebounded to pre-pandemic levels . However , it is down by almost two percentage points for workers 65-years and older . In December 2019 , the labor force participation rate was 28.8 % for 65-years and older workers . But , in January 2022 , it fell to 27.2 %. The drop in the labor force participation rate for workers 65-years and older remains a concerning trend .
While there are indications the trend for older workers will improve in the coming years , the longer it takes , the more workers who are otherwise willing , able , and interested in continuing to work will instead remain outside of the labor force .
83 % of global business leaders realize the benefit of multigenerational workforces .
Only 74 % agree that they would provide training and lifelong learning opportunities for older employees if given the appropriate information to do so .
A 2020 survey conducted by Transamerica Center for Retirement Studies , found that “ one in five workers ( 21 %) indicate their confidence in their ability to retire
32 | TRENDS APRIL 2022 www . aamdhq . org