Older workers might not benefit from boost in hiring
Companies are starting to hire again, but many are turning their backs on older job seekers, CNNMoney.com said.
U.S. Department of Labor data show the employment outlook is improving for most workers. The unemployment rate for those in the 25- to 54-year-old age group dropped to 8.7 percent in May from a record high of 9.2 percent in October.
But the nationwide unemployment rate for older workers — though lower than that of younger workers — has barely moved since hitting a record high of 7.2 percent last December. It’s currently 7.1 percent.
“All the gains we’ve seen from the peak last fall to now, they’ve gone to people less than 55 years old,” said Heidi Shierholz, labor economist with the Economic Policy Institute.
Experts also said the unemployment rate for older workers may be misleading. Older workers are more likely to become discouraged and stop looking for work. As a result, they would not be included in official unemployment figures.
The divergence in job prospects for older and younger workers is new. In past recessions, the unemployment rate for the different age groups generally moved in tandem, said Shierholz.
But the problem for older job seekers could get even worse. That’s because they are much more likely to be among the long-term unemployed, which will make it more difficult for them to eventually find a job.
In May, 60 percent of older unemployed workers had been out of work six months or more, while 43 percent had been without a job more than a year. Click here to read the entire story.