With Age Comes Fewer Raises: Here's Why Many Older Americans Aren't Seeing Higher Pay

A falling U.S. unemployment rate has not been accompanied by any sustained traction in wage growth. Stagnating raises for older employees, in particular, could be compounding the problem, according to Bankrate . The firm's December 2019 Financial Security Poll estimated that half of American workers received no pay boost over the past year, which experts say is hindering the pace of pay gains in general. Meanwhile, the U.S. Labor Department said the portion of the country's workforce comprised of employees older than 55 rose from 29.4 percent in 1993 to 40.2 percent in 2019. "One of the most important trends we've seen over the past 25 years is that older people are working longer," notes the Urban Institute's Rich Johnson. But the Bankrate survey found that half of baby boomers between 55 and 64 received no pay raise over the past 12 months — and neither did nearly 60 percent of those 65 to 73. Johnson cites underlying factors, including older Americans' productivity generally not growing as fast as that of younger workers.