In a recent testimony, the Economic Policy Institute reported that older workers were devastated by the pandemic downturn and continue to face adverse employment outcomes. The testimony, which was prepared for a Senate Special Committee on Aging hearing, aims to support older workers during the COVID-19 crisis and beyond.
In 2020, the US economy took a hit like none other in recent history – the reason being the need to control the pandemic and keep people safe. This highly unusual cause led to far different first-round impacts than previous recessions in terms of which sectors of the workforce were hit hardest.
Workers across the economy, including older workers, experienced devastating job losses. 5.7 million workers age 55 and older lost their jobs in the spring of 2020. This group remains over 2 million jobs short of their employment levels before the pandemic hit.
How do labor market outcomes compare to past economic crises?
The pandemic’s labor market outcomes were far worse for older workers as compared to their experience in the Great Recession. Older workers age 55 and older in the pandemic saw greater losses in employment compared to the Great Recession while the older workers (65 years and older) experienced employment gains in the Great Recession and losses in the pandemic recession.
One of the reasons the economic outcomes were harder for older workers is that they were less likely to be able to work remotely coming into the pandemic. They were also significantly harder hit by the pandemic itself and may have left their jobs in greater numbers due to concerns over their own health.
The Economic Policy Institute’s testimony urges for continued assistance from policymakers to ensure that the economy comes back strong, and the recovery provides greater economic security and opportunity for all workers, regardless of age, race/ethnicity, gender, and educational attainment.
Job losses in the pandemic
At the beginning of the pandemic in the spring of 2020, the US economy experienced losses in March and April of 1.7 million jobs, a figure we hadn’t experienced in modern history.
The labor market saw a significant bound back in May and June with 2.8 million and 4.8 million jobs added. Then, over the remainder of 2020, job growth rapidly slowed as federal relief expired and the virus continued to surge. Employment fell outright in December 2020, a loss of 306,000 jobs.
March 2021 took a turn for the better adding 916,000 jobs to the labor market. Even with these gains, the labor market is still down 8.4 million jobs from its pre-pandemic level in February 2020.
Millions of older workers lost their jobs in the COVID-19 recession
Older workers were significantly impacted by the COVID recession. Between March and April 2020, 5.7 million workers age 55 and older lost their jobs. This represents a loss of 15% of employment among older workers. Like overall workers, older workers experienced a rebound last summer, but unlike most other workers, older workers lost ground through the fall.
It’s also important to take into account the fact that the older population has grown significantly since the start of the pandemic. The 55 and older population has increased by more than 1.5 million since February 2020.
Older workers experienced far worse labor market outcomes in the pandemic recession than the Great recession. Workers 55-64 years old experienced more mild employment losses in the prior recession and workers age 65 and older experienced outright gains in the prior recession.
Concerns over health impacted employment
Older workers are at higher risk for severe illness from COVID-19. The majority – 93% – of deaths from COVID-19 were among those 55 years and older. Many older workers may have not only lost their jobs but opted out of the workforce for fears of their own health and safety.
Older workers were less likely than many other age groups to be able to telework before the pandemic hit. Nearly three-fourths of workers age 65 and older (over 5 million individuals) were unable to work remotely, and over two-thirds of 55 to 64-year-olds could not work remotely. These workers, who are at higher risk for severe illness, could have been putting themselves at risk to earn a paycheck.
Shrinking the digital divide
VANTAGE’s Workforce Solutions program is addressing this national issue by establishing a pilot project, Shrinking the Digital Divide for Older Ohioans, a digital inclusion effort that improves digital access and computer competencies of older Ohioans.
Shrinking the Digital Divide for Older Ohioans utilizes a Digital Navigator model, making it unique among similar projects because the stated emphasis of the pilot program is its focus on workforce development for a specific population of adults aged 55 and older.
VANTAGE Aging provides job training for low-income Ohioans age 55 and older through the Senior Community Service Employment Program.
*The information in this article is intended solely to provide general information on matters of interest for the personal use of the reader, who accepts full responsibility for its use. This article should not be used as a substitute for consultation with professional legal, medical, or other competent advisors.