Industry Hiring Patterns of Older Workers

Abstract

The decision to remain in the workforce or fully retire is typically made between the ages of 55 and 64 and is predicated on many factors, including the availability of suitable jobs. The authors explored the extent to which members of this age group are being hired by different industries and developed a model isolating what types of factors best determine relative hiring rates: those specific to an industry, a labor market, the older worker age group, or some combination thereof. The authors estimate a low rate of new hiring for older workers aged 55 to 64 years, with low turnover and net outflows but substantial variability among industries. The findings additionally suggest that current national industry job growth and pay differentials among older new hires, existing older workers, and other new hires have the greatest bearing on how much these net flows vary by industry within states. Implications for older workers, their prospective employers, and policy makers are discussed.