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National
Economy threatened by Baby Boomer Retirement
Boom
Newswise — As millions of baby boomers
prepare to retire, “the inevitable talent
drain threatens to alter the national
economy,” said Ithaca College sociologist
Stephen Sweet, referring to a recent report
he coauthored, released by the Sloan Center
on Aging & Work at Boston College. “Cracks
have appeared in the foundation of the
economy and the workforce is getting older.”
The report — The Pressures of Talent
Management — examined talent management
practices at 696 organizations across the 10
leading sectors of the economy. The
companies studied employ more than one
million workers combined and represent
businesses that account for roughly 85
percent of the jobs and payrolls in the U.S.
“Four of every ten employers surveyed
anticipate the aging workforce will have a
negative impact on their business over the
next three years,” said Sweet.
In 2000, baby boomers represented the
largest portion of the U.S. labor force at
48 percent. By 2010, they're projected to
shrink to 37 percent of the workforce,
leading some economists to predict a
shortage of 10-15 million workers in the
coming decade, with a disproportionate
number of inexperienced workers in the
overall dwindling labor pool. The retirement
boom affects staffing leadership and
training as well as overall continuity and
engagement within the workforce.
"The out-migration of a generation of
workers will upset the entire balance of the
workplace," said co-author Marcie Pitt-Catsouphes,
director of the Sloan Center on Aging &
Work. "U.S. companies need to start planning
strategically for workforce sustainability.
The current abundance of older worker talent
and experience is going to dry up, and
businesses will very soon need to fill
hundreds, if not thousands, of jobs."
Though long-predicted, the threat of
workforce shortages has met with limited
planning response from organizations.
Realizing that some older workers want to
work longer but more on their own terms to
fit their changing lifestyles, some
organizations created programs to improve
employee engagement and productivity, and
have a measured way to manage knowledge
transfer. Those who heeded the warning and
began adapting have a huge potential for a
competitive edge. “Workforce planning makes
good business sense,” said Sweet.
“Changing age demographics don't have to
disrupt a business — they may present new
opportunities or competitive advantages.
Employers should take advantage of programs
designed to meet the evolving needs of
employees nearing retirement, while at the
same time meeting business needs by keeping
experienced talent longer and ensuring
business continuity.”
Additional key findings include:
• 77 percent of employers surveyed had not
analyzed projected employee retirement rates
or assessed employee career plans.
• 56 percent of these businesses had not
assessed the skills their organizations need
today and in the future.
• About one-third of employers reported not
having enough programs for recruitment or
training of older workers.
An associate professor of sociology at
Ithaca College, Sweet studies the
intersections between work, family and
community. His most recent book, “Changing
Contours of Work: Jobs and Opportunities in
the New Economy,” examines how economic
transformations are reshaping work
opportunities in the United States.
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