The ageing of the workforce is one of the more interesting work-related trends observed in recent years, with thinkers such as London Business School’s Lynda Gratton highlighting the changing nature of the 100 year life, and it’s impact on how we live, work and learn.

As with most changes, these changes are unlikely to unfold equally across society, and a new study from Provision Living explores which cities in the United States appear to be supporting older people’s continued participation in the labor market.

The researchers analyzed every city in America with over 200,000 residents, and Plano, Texas emerged as the city with the most over 65s still in the workforce, followed closely by Washington DC.

 

Indeed, over 25% of the senior population in Plano were still working, which was nearly 1.5% higher than Washington DC in second place.  The authors suggest this could be down to a number of factors, including financial necessity and gaining pleasure from working.  In each of the top 25 cities however, over 20% of the senior population were still working in some way, with five of the top 10 cities from the state of Texas, with Garland, Austin, Dallas and Irving joining Plano in the top 10.

What is perhaps most interesting is that smaller towns tend to have a higher proportion of seniors working, with cities like New York and Chicago failing to break into the top 50.  Indeed, of the top 25, fewer than half of the cities had a population of over 500,000.

Changing tides

As well as having the highest proportion of older people working, Plano was also among the highest in terms of growth in the proportion of senior citizens working.  Indeed, their growth rate of 99% since 2009 was only beaten by Durham, who saw growth of 109% in the same period.

Longevity dividend

This new workforce has tremendous potential to provide a longevity dividend to society, but it is by no means guaranteed.  For instance, a recent study from the International Longevity Centre highlighted the strong potential for a ‘longevity dividend’ underpinned by greater productivity as we age.

This seldom converts into the public discourse however, which tends to view ageing as a burden as large numbers enter retirement and stop contributing to society, whilst at the same time drawing pensions and demanding larger shares of healthcare provision.  This perception is compounded by difficulties in raising retirement age or reducing entitlements towards the elderly.

It will have implications for how companies manage their talent however, especially if a growing number of employees cannot afford to retire when they want to, and are physically unable to manage certain tasks. This is a very real risk, as saving for retirement remains insufficient for many, with up to a third of retired people in the UK relying solely on the state pension for their income. This alone is some way below the benchmark that defines poverty and the ability to meet basic needs.

Of course, retaining older people in the workforce has numerous advantages as well, with the prospect of keeping hold of the explicit and tacit skills they’ve accumulated during their careers. This is especially valuable in areas where skills shortages exist, and organizations can help to overcome this by using older workers as mentors for people undergoing mid-career transitions.

To a large extent, whether the increased longevity we can expect becomes a burden or a dividend depends largely on the way in which society prepares and responds to the change. Organizations today are largely clueless as to how to handle and use the assets represented by their older employees, especially if they exist outside of their current workforce.

This longevity dividend is certainly achievable, but will require a change in how employers, and society more broadly, approach the topic. Mobilizing older workers’ skills, expanding labour forces and fostering intergenerational solidarity will mean that rising life expectancy can be both socially and economically good.