The era of the Baby Boomer is approaching its twilight, but as it does it promises to bring monumental changes to the American economy. Beginning in 2011, an estimated 10,000 Boomers turn 65 every day and this trend will continue to around 2030. The US Census Bureau also projects that by 2035 the number of citizens aged 65+ will outnumber those 18 and under for the first time in US History.
As people continue to hit the expected retirement age, one major struggle will be to replace the outgoing workers. The generation immediately following the Baby Boomers is considerably smaller and there isn’t enough similarly skilled labor to fill the gap. The Bureau of Labor Statistics suggests that from 2014 to 2024, unskilled and low-skilled workers will account for the largest increase in jobs.
An important statistic to note is that many of these older Americans are actually continuing to work or seek work, however. The combined driving factors of general increased age expectancy and health with a lack of pension or retirement savings caused the percentage of people over 65 working or attempting to enter the workforce to increase from 10% to 20% from 1985 to 2019. By 2024, the number of these 65+ workers is expected to surpass 13 million.
How an Aging Workforce Affects Workers’ Compensation
Older workers have some of the lowest rates of injury, potentially owed to their greater experience. However, their injuries are often more severe and require an extended recovery period compared to their younger counterparts. Older workers are more likely to suffer slip and fall injuries than any other. They are also more likely to have multiple issues or complications relating to pre-existing injuries.
The rise in lower-skilled workers may also prove to have an adverse effect on workers’ compensation expenses. Employees just starting a job have a much higher risk for a lost-time injury than those who have been working for more than a year. New workers who are unsure of best safety practices won’t be able to identify potential hazards. This increases the likelihood of a workplace accident.
Adjusting for Change
The aging workforce could signal a need for a refocused approach to a company’s workers’ compensation program. Older workers are more likely to require longer rehabilitation and alternative working options. Having a comprehensive Return to Work program will help lessen the cost of care and get your older employees back to work sooner.
It may be prudent to install additional safety measures to protect against the most common types of injuries. Ensuring that you have handrails and that offices are safe from potential hazards can limit the number of slips and falls.
Handling the issue of lower-skilled and unskilled labor is much more complicated. One solution is to find a way to make your business or company more attractive to young professionals. Millennials are much more likely than any other generation to switch jobs, as well, so maintaining the morale within your organization is increasingly important. Programs that improve quality of life for your workers go a long way in creating a positive work atmosphere and reduce the need to replace employees.
Changing your company’s orientation to include on the job training and an emphasis on safety will also help reduce the risks associated with hiring new lower-skilled workers.
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The risk management industry is no stranger to the aging workforce dilemma. Johns Eastern’s strategy has been to develop our on the job training program to facilitate our employees’ growth within our organization. We incorporate quality of life programs to improve our company’s culture and entice the next generation of claims professionals to continue the tradition of excellence.
