Emily Stover DeRocco Speech
A National Perspective on the Aging Workforce
AARP Foundation Workforce Initiative Launch
February 25, 2005
8:55 – 9:05 a.m.
It’s great to be here with you today, and to hear from the governors about their plans to ensure that businesses can tap into older workers as a resource to address their hiring needs. I would like to speak with you about the national perspective—about the Department of Labor’s interest in the mature workforce, the impact of aging on the economy, and how we propose to address these issues by linking nonprofit organizations, employers, educators, and the publicly-funded workforce investment system.
An Aging Population
- As you know, the U.S. economy is entering a period of dramatic demographic change as our population ages. According to the Department of Labor’s Bureau of Labor Statistics, by 2030, as the baby boom generation ages, 20 percent of the population, or about 70 million Americans, will be 65 or older, compared to 12 percent today.
- Further, as a result of lower birth rates in recent years, combined with the aging and retirement of the baby boom generation, the American workforce is growing more slowly.
- The changing demographics of the labor force, in combination with the ever-increasing skill demands of employers, have made it more critical that every available worker, including older Americans, be able to join the work force to enable the continued competitiveness of American businesses in the 21st Century.
Barriers to Employment Faced by Older Workers
- Yet older workers face significant challenges to full participation in our workforce. Employment barriers include difficulties keeping pace with changing skill requirements and technology, the lack of opportunities for skills training and professional development, misperceptions among employers about the abilities of older workers, the lack of flexible work schedules, and certain financial disincentives that may encourage early retirement.
- Many older workers want to remain in the workforce and many need to continue working for financial reasons. There is a resource available to help.
- Each year, our nation’s taxpayers invest about $15 billion in the publicly-funded workforce investment system. This public workforce system has an important role to play in helping older workers to obtain the necessary skills and access to opportunities to continue working.
Response by the Department of Labor to an Aging Population
- Our public workforce investment system has an important role to play as well for employers that need a skilled workforce in order to grow and be competitive.
- If we are to meet the rapidly-changing skills demands of business and to address potential labor shortages, we will need to help employers seek out untapped labor pools, like older workers. Some employers -- such as the ones being featured here this morning -- already recognize the value that older workers bring to the workplace: they know that older workers are a human capital asset; bring responsibility, loyalty, dedication, experience and skills to the workplace; and serve as effective mentors to younger employees.
- Still, more needs to be done to provide job training opportunities for mature workers and better connections to older workers for employers looking to hire.
- At the Department of Labor we are taking steps to enhance the effectiveness of the public workforce investment system to serve older workers, and we are pursuing new strategies and special initiatives to link mature workers to employees.
Older Worker Projects and Initiatives
Older Worker Taskforce
- In November 2004, the Employment and Training Administration convened an interagency taskforce focused on the older worker population. Their charge is to develop a comprehensive policy and investment strategy designed to address the key issues related to the participation of older workers in the labor market.
- Three objectives have been identified for the Taskforce:
- Identifying and filling knowledge gaps that currently exist regarding older workers’ employment opportunities.
- Strengthening the capacity of the workforce investment system to provide comprehensive, integrated employment and training services to older workers.
- Identifying and addressing the barriers to employment faced by older workers in order to increase employment outcomes for this population.
- I am looking forward to reviewing the Taskforce’s recommendations and working with our public and private partners to move the recommendations from ideas into reality.
Protocol for Serving Older Workers
- Also in January 2005, the Department of Labor released a “Protocol for Serving Older Workers” to the 3000 One-Stop Career Centers of the public workforce investment system. The goal of this protocol is to enhance the services provided to, older workers, and to inspire the One-Stop Career Center system to pursue innovative strategies for tapping into this labor pool.
- We know the workforce investment system must do a better job serving a larger number of older workers and we must forge new partnerships with business and industry and mature worker intermediaries to ensure successful placement of older workers in jobs.
- Of course, these efforts are in addition to our existing programs that specifically serve seniors--the Senior Community Service Employment Program and the Alternative Trade Adjustment Assistance Program for Older Workers.
Conclusion
- We are very pleased to be a part of this event today, which highlights the need and the desire of employers to consider the older worker population when they are hiring.
- At the Employment and Training Administration, we look forward to pursuing the great opportunities ahead for both mature workers and America’s businesses.
