Unemployment Insurance and Older Workers in the United States [ mesradios.com ]

Unemployment Insurance and Older Workers in the United States

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People are living longer and healthier lives at the same time that layoffs are increasing and pension plans are being curtailed. As the era of longevity progresses, unemployment among older Americans is likely to be a growing problem. In addition to the traditional male workforce, a larger number of older women will have had substantially more work experience than was historically true.

mong women without spousal support (the single, widowed, and divorced), many will find that they must remain employed if they are to meet their financial needs.

Labor force data for 1965 to 1981 indicate that when older workers became unemployed, they were “less likely to find a job and more likely to leave the labor force in discouragement” (Rones 1983).Today, even though older jobless workers continue to face longer duration of unemployment and less success in finding jobs than younger workers, the retirement option is less realistic because inflation has not been matched by the cost-of-living adjustment (COLA) in Social Security and because there has been a variety of other inroads on retirement security. (Social Security On-line 2007, 2008)

In the past, discouraged workers of retirement age often discontinued the search for jobs and retired on Social Security (often but not always supplemented by pensions).When an older worker becomes unemployed, it not only cuts incomeand curtails necessary household spending but also invades financial reserves that were part of an overall retirement plan. Relations with family members
may suffer when younger family members need their income to keep going themselves and to pay for their children’s education. On the other hand, commitments of financial aid from an older family member to younger members may no longer be possible, and isolation may set in when even transportation costs are an impediment to maintaining social interactions. Nationally, too, the effects are significant not only because of the loss of experienced older workers but also because of the decline in their purchasing power.

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Par International Longevity Center Date 14-09-2008

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