The Experiences Of Older Workers Of The Age Of 55 And Older

The Experiences Of Older Workers Of The Age Of 55 And Older

Introduction

The paper aim to talk about workforce: the experiences of older workers of the age of 55 and Older. The paper uses a historical review to show the extent of the situation from the beginning of the recession, which began in 2007. A qualitative research method is used in the paper as well as a phenomenology study in order to formulate a clear conclusion about the research problem.

Since the beginning of recession in 2007, older workers just like other groups, experienced unemployment problem. The overall unemployment rate seemed to have escalated vividly. By the end of 2011, there was an increase in the percentage number of unemployed old workers from 3.1 per cent at the beginning of recession to 6.0 per cent by the end of 2011. The highest rate of unemployment ever witnesses was 7.6 per cent in 2010 (GAO, 2012).

Long term unemployment rate increased significantly at a higher rate for older workers as compared to younger ones. Come 2011, more than 50% of unemployed mature workers were already actively seeking for employment for a period of over 27 weeks. In the meantime, the long lasting trend of increasing labor force involvement rates among mature workers has gone on, with recession accelerating this trend (GAO, 2012). The long term unemployment placed older workers to a risky position of deferring medical care, accumulating debts and losing their homes.

Method and Discussion

To obtain information about the issue, secondary data is used specifically from previous researches. A research conducted by GAO, which interviewed a career center and a number of unemployed older workers found out that reluctance aspect of firms in employing aged workers was the main reason for their unemployment condition. Most of the firms prefer younger workers to the aged ones. Firms would most wish to wind out any outdated skills, a situation that would make it difficult for new workers to enter in the employment team at their extreme ages. Besides, older workers are perceived to be less unproductive due to their vulnerability to poor health conditions (Bockerman & Ilmakunnas, 2009). Some of the problems facing older people may include depression in adequate experience in new technologies such as handling online application along other upcoming technologies. According to the GAO report, providing assistance to these workers would be time consuming and an additional cost to the organizations that employ them (GAO, 2012).

Older works would hardly fit within the long-term unemployment plan in many companies. Long-term employment plan significantly decreases their future benefits after retirement through various ways. It could make the older workers evade from saving for future benefits due to his/her chances of terminating the employment at any given time or earlier than expected. The long-term employment plan may force the aged workers to withdraw all their saving to carter for other needs. In simple case, an aged worker could have saved 70,000 USD for retirement benefits but struggles for other five and a half years in order to maintain the savings to that level of $ 70 000. This implies that aged workers may not add any value to their future benefits, an aspect that could contribute to deliberate unemployment (TUGEND, 2013).

The researcher looked at specific policies that had been put in place to address the challenges of re-employment. Researchers compiled the policies from past researches that had been carried out. For instance, two of the selected policies were to provide incentives like training subsidies or temporary wage for the unemployed workers to get jobs. In the recent context of gradual job creation and high unemployment, the results of most policies shows some possibility of being changed due to scarce job openings (Steininger & Rotte, 2009).

Possible Solutions

The best solution to the unemployment problem among aged workers is their acceptance by firms and business organizations. They should also be able to prove their abilities. In 2008 there was an implementation of some strategies to solve the unemployment problem (TUGEND, 2013). At the start of the recession period, labor movements focused on responding to the increase in service demands (Steininger & Rotte, 2009). As the economy improves, labor will refocus on aged job seekers. Labor should also put in place strategies that would eliminate any challenges during the re-employment processes.

Conclusion

As much as long-term unemployment problem demoralizes job hunters of varied age groups, it creates major problems to old workers. In particular, the unemployment problem affects older workers more than it does to younger workers. Employers need to take advantage of the skills and experiences in older workers. As long as the system is striving to put older workers back to work, older people seeking employment should also be able to prove their abilities. Their employment should create a mutual benefit between them and the employer. They should not end up becoming a burden to the employers.

Reference

Bockerman, P., & Ilmakunnas, P. (2009). Unemployment and self-assessed health: evidence from panel data. Health Economics 18 (2), 161–179.

GAO, 2012. Unemployment Insurance: Economic Circumstances of Individuals Who Exhausted Benefits, GAO-12-408 Washington, D.C.

Over 50 and Out of Work. (2012). Duration of unemployment for older workers continues to lengthen. Retrieved from Over 50 and Out of Work: http://www.overfiftyandoutofwork.com/blog/duration-of-unemployment-for-older-workers-continues-to-lengthen/

Steininger, M., & Rotte, R. (2009). Crime, unemployment, and xenophobia?: An ecological analysis of right-wing election results in Hamburg, 1986–2005. Jahrbuch für Regionalwissenschaft 29 (1), 29–63.

TUGEND, A. (2013, July 26). Unemployed and Older, and Facing a Jobless Future. Retrieved from nytimes.com/: http://www.nytimes.com/2013/07/27/your-money/unemployed-and-older-and-facing-a-jobless-future.html?_r=0