Workers over age 65 expected to increase

Published 12:00 am Wednesday, August 13, 2014

The Oregon Employment Department projects an increase in people age 55 and older who will still be working through the next eight years, according to a recent report.

While the state expects the labor force participation rate to decrease from 2013 to 2022 for all Oregon age groups under age 55, it expects an increase for those 55 and older.

Participation rates for those age 55-64 are expected to increase by 2.7 percentage points, from 61.1 percent to 63.8 percent, during the time period, according to the report, “Oregon’s Falling Labor Force Participation: A Story of Baby Boomers, Youth, and the Great Recession.” For those, 65 and older, it’s projected to increase 4.1 percentage points, from 14.5 percent in 2013 to 18.6 percent in 2022, according to the report.

The labor force participation rate equals the percentage of the population ages 16 and older that is employed or unemployed, according to the Employment Department.

Current participation rates for older workers vary by county, according to an update posted Thursday. Crook County, at 8 percent, had the lowest participation rate in the state for those age 65 or older from 2008 to 2012; the Employment Department calculated. Wheeler County had the highest, at 27 percent.

Deschutes County fell within the 8 to 11 percent range, while Jefferson County landed in the 16 to 19 percent range.

Increasing participation by older workers is nothing new. Rates for the 55-64 age group have been rising since 1986, the report states.

The reason: sheer numbers, for one. The baby boom generation has a larger participation rate than previous generations, largely because of the increase in women entering the labor force.

Improvements in health care also allow workers to continue on the job longer, according to the report. Jobs in the service sector, which require less labor, have increased, and employees must work more years to build savings for retirement.

While their numbers may increase, older workers will still be greatly outnumbered by younger ones, according to the report. The rate for the 55-64 age group is expected to be 63.8 percent in 2022. But the rate for those age 25-54 is predicted to be 78.2 percent.

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