Friday, May 18, 2012
Unemployment line, New York City
Prolonged unemployment for older Americans has become a serious problem with both immediate and long-term consequences.
As of December 2011, approximately 3.65 million older Americans were unemployed or underemployed. For workers age 50 and older, being without a job for more than six months is now common.
“The prospects are dim for older workers who lose their jobs….They face pointed discrimination when they go looking for work, and they are especially vulnerable to financial instability,” said Christine Owens, executive director of the National Employment Law Project (NELP), before the Senate Special Committee on Aging.
Long-term joblessness also can severely impact the future security of older workers. The Government Accountability Office (GAO) reported sustained joblessness can “diminish an older worker’s future retirement income in several ways.”
These include forcing someone to stop saving for retirement, as well as having to tap into retirement savings sooner.
“In addition, long-term unemployment can motivate older workers to claim early Social Security retirement benefits, which will result in lower monthly benefits for workers and their survivors for the rest of their lives,” the GAO stated in its report.
-Noel Brinkerhoff
To Learn More:
Older Workers Have Highest Long-Term Jobless Rate (by Mike Hall, AFL-CIO Now)
Unemployed Older Workers: Many Experience Challenges Regaining Employment and Face Reduced Retirement Security (Government Accountability Office) (pdf)
Most U.S. Jobless Don’t Receive Unemployment Benefits (by Noel Brinkerhoff and David Wallechinsky, AllGov)
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