How Retiring Baby Boomers Affect the Job Market
Overview
By the year 2010, a large percentage of the workforce will
be retiring. This is causing what has been referred to as a
"huge knowledge gap". As this generation approaches their
retirement years, companies are starting to change the ways
that they define work. This outflow of competent workers
also opens up many new job opportunities, even during a
time when the economy is not growing.
Changes in the Workplace
One of the interesting ways that the aging workforce is
changing the way we work is by bringing a measure of
flexibility to the office. Companies are finding that
employees in this age group require different work
conditions. They are less interested in working long
hours, less defined by their careers, and much more
interested in part time work. As a result of this trend,
"quality of life" has become a key phrase. Telecommuting,
job sharing, part time work and flex scheduling can be
partially attributed to this generation's influence.
Alliance for an Experienced Workforce
Within the past few years, nearly two dozen industry
associations have grouped together to create a new
organization, the Alliance for an Experienced Workforce.
This group works with employers to find creative ways
to keep the retiring baby boomers working. Some of the
popular options include more training, to keep the skills of
the older workers current and relevant to the changes
in technology. Other suggestions include enticing older
tech workers to stay in the workforce by offering options
like job-sharing, flex-time, and part-time work.
Financial Considerations
The unfortunate reality for many baby boomers is that full
retirement is not financially viable. As a result, many will
need to continue working, at least part time, to support
themselves.
Fewer Workers = More Job Openings
As more baby boomers retire, there are fewer replacement
workers to take over. Even if the economy is in a
downturn, overall, there will still be a need for specialized
workers to take over these new openings. According to
the Bureau of Labor Statistics, during the next decade,
one of highest in-demand fields will be computer services.
When Supply Does Not Equal Demand
In the labor market, and specifically in the technology
job market,when there are jobs available and not enough
workers, wages go up to attract and retain the necessary
workers. This will mean that more people will then
become interested in jobs in technology. Because
companies need workers, and because it can take a
long time for new workers to get the skills needed, tech
companies will put pressure on the US government to
increase the number of new visas approved in a given
year. Most notably, the H-1B visa, since this is the
one most impacted by the tech industry.
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