Retirement Blog

Finance Blogs » Retirement » Older job hunters give up quickly

Older job hunters give up quickly

By Jennie L. Phipps · Bankrate.com
Wednesday, February 5, 2014
Posted: 12 pm ET

If you are old enough to collect Social Security or you are entitled to an old-fashioned pension, the likelihood that you will search long and hard for a new job after you lose your old one is low, according to an examination of unemployment statistics from the Center for Retirement Research at Boston College.

The study showed that after nine or fewer months without work, more than 50 percent of workers age 62 or older throw in the job search towel and kick their retirement planning into high gear. "The findings were very surprising to me," says Matthew Rutledge, the research economist who did the study. "The results show that older individuals have little tolerance for a lengthy search. The vast majority either find a job or exit the labor force within a year. Those with financial resources, such as Social Security, leave even sooner."

Rutledge found that people 62 or older are particularly likely to abandon their job hunt and retire if they are not in good health, are women or are married to a spouse who has already retired. The unemployment rate where older workers live doesn't appear to have any significant impact on their decision to choose retirement.

Rutledge says that among workers ages 50 to 61, the picture appears to be different. In that age group, other studies have shown that more than 70 percent continue to job hunt and the ability to claim unemployment insurance keeps this age group even more focused on finding work.

The bottom line: Boomers are retiring and it doesn't take much to convince them to hang up their work boots. "Demographics are going to push us in the direction of overall fewer people working," Rutledge says.

Intuitively, this might sound like good news: Boomers move on and younger people take over. But other research from the center shows that's not true. When older people continue to work, they have more money to spend, and that's good for the overall economy. "More people working means more jobs for everyone," Rutledge says.

To discourage older people from leaving the workforce, Rutledge and the center recommend that the government consider:

  • Offering wage subsidies that make hiring older people more attractive for employers and make taking a job more attractive for people who might otherwise choose retirement.
  • Extend the earned income tax credit to older non-parents.
  • Start government programs that hire older people directly.
«
»
Bankrate wants to hear from you and encourages comments. We ask that you stay on topic, respect other people's opinions, and avoid profanity, offensive statements, and illegal content. Please keep in mind that we reserve the right to (but are not obligated to) edit or delete your comments. Please avoid posting private or confidential information, and also keep in mind that anything you post may be disclosed, published, transmitted or reused.

By submitting a post, you agree to be bound by Bankrate's terms of use. Please refer to Bankrate's privacy policy for more information regarding Bankrate's privacy practices.
2 Comments
Jim Sisk
February 13, 2014 at 1:07 am

When I apply for jobs I'm told I'm over qualified. What does that mean when I'm broke and struggling? Just another way of saying that I'm too old.

Charles Davis
February 12, 2014 at 10:37 pm

I am 64 and have been out of work since May, 2011. I worked for 34 years at a company that closed and moved its operations to Mexico. It has been extremely difficult, at my age, to find a job with decent pay. It seems that no companies are interested in hiring older workers! I used to think that experience counted but I have found out that it does not, especially for older workers!

Add a comment

(Comments may take 5-10 minutes to appear)