Policies to Improve Workforce Services for Older Americans

A Brookings Institution report notes that a large portion of older Americans do not have sufficient savings for retirement, concurrent with the U.S. economy's growing reliance on older workers. "A significant challenge to continued employment at older ages is that workers often must change jobs late in life," the authors write, adding that such displacement may accelerate amid rapid technological change and globalization. They also observe that the federal-state workforce system is failing to meet older adults' requirements, particularly because there currently are no special programs to serve older job seekers. "Moreover, the measures used by the U.S. Department of Labor to evaluate state workforce agencies' performance create a disincentive to provide services to older workers," the authors point out. "Especially given today's high level of unemployment, the large share of affected workers who are older, and the inadequacy of many older adults' retirement savings, the need to address these shortcomings is urgent." The authors suggest a number of relatively inexpensive policy reforms, including posting specialized staff at job centers who understand older workers' needs and who can serve them more effectively. Other proposals include experimenting with job placement programs designed for older workers; promoting self-employment among older adults; targeted skills development for older workers; and eliminating disincentives using separate program performance standards for older adults. Also recommended is reinstating funding to the Senior Community Service Employment Program, and assessing the new programs and initiatives to verify their intended effect.