A new analysis by the AARP Public Policy Institute shows that unemployment for Americans 55 and older surged 331 percent over the past decade:

• The total number of unemployed individuals 55 and older rose from 490,000 to 2,114,000.
• The number of unemployed 65 and up rose from 143,000 to 479,000.
• The average duration of unemployment for people 55 and up increased 85.6 percent from 18.7 weeks to 34.7 weeks.
• The average duration of unemployment for those older than 64 increased from 24.8 weeks to 32.9 weeks.

With the highest levels of unemployment there are two demographics that get squeezed: 

1. The older worker
2. The younger worker

The older workers may have the ‘life’ experience, but employers are looking for stronger technical skills and do not want to pay the salaries that many of the older workers expect.

The younger workers, although they have the technical skills, do not possess the real life working experience employers are looking for and employers are able to find overly qualified candidates willing to downgrade their skills to take a job.

Las Vegas is in a unique position because these are our two largest demographics.  Older workers have been flocking to Las Vegas and it has become the 2nd or 3rd largest retirement destination in the United States.  Younger workers flock here to work in the hospitality industry, learning that many of these Las Vegas jobs do not exist anymore. 

Interesting times out there.  Here is a great article that spells it out:  Layoffs toughest on workers young, older

The folks over at Nevada Federal Credit Union (NFCU) cease to amaze me.  They have won nearly every award imaginable for building and maintaining a great workplace.   Most recently, AARP announced that NFCU was recognized as a “Best Employer for Workers Over 50.” 

Actually, they were ranked # 14.  In 2008 NFCU made the list at # 41.  They are the only company in Nevada to win this award since the program was started nine years ago. 

Congrats Michael T. and team!!!  You guys rock.

(Las Vegas, NV)  In an AARP survey released today, Clark County businesses identify finding employees with the right skills and qualifications to be their biggest worry when it comes to workforce concerns, with 53 percent suggesting it had been their top challenge over the last five years.  Eighty-six percent (86%) said that they believed it is highly likely that they will experience problems finding qualified workers over the next five years.  These were the top workforce challenges identified by employers in Clark County, despite the current economic climate in the county and across the state according to the survey, The Boomer Factor: Rethinking an Underutilized Workforce in Nevada. 

Remarkably, though finding qualified workers is of paramount importance, employer interest in retaining existing workers with the bulk of organizational knowledge is split with 43 percent surveyed viewing it as not important.  And only 45 percent of all companies surveyed have any processes in place to transfer worker knowledge when employees leave the company.

Additionally, two thirds (59%) of respondents said that their organization does not factor turnover into their employment costs at all. This despite the fact that when employees leave an organization, not only do they take with them the skills and knowledge that contributed to the operations, goals, profits and successes of the organization, their departure will cost the organization in replacement hiring, training new hires and lost productivity. In a 2005 Towers Perrin report commissioned by AARP, turnover costs of average employees can be 50 percent of that employee’s annual salary.  According to the Clark County survey 53 percent of employers were not sure what percentage of human resource costs could be attributed to employee turnover.

Michael Traficanti, Senior Vice President of Human Resources with Nevada Federal Credit Union is one of the hiring managers who truly understands the value of the company’s workers. “NFCU workers that have been with us for years are familiar with the unique regulations and standards that are common to our industry. They are also invaluable for assisting with cross training new employees. Along that same line, seasoned job seekers are highly revered when we have new positions to fill.” 

As baby boomers leave the workforce, “brain drain” has the potential to become a serious problem for business.  Worker shortages and challenges with retaining organization knowledge are already negatively impacting such industries as healthcare, engineering and teaching.  The current recession gives business an opportunity to rethink their hiring strategies to gain a competitive edge in the future. 

This AARP survey was designed to better understand the extent to which employers in Clark County are adapting to shifting labor force demographics and a pending future labor shortage as baby boomers, one of largest and best educated generations our country has ever produced, begin to retire from the workforce.

AARP is a nonprofit, nonpartisan membership organization that helps people 50+ have independence, choice and control in ways that are beneficial and affordable to them and society as a whole. AARP does not endorse candidates for public office or make contributions to either political campaigns or candidates. We produce AARP The Magazine, the definitive voice for 50+ Americans and the world’s largest-circulation magazine with over 34.5 million readers; AARP Bulletin, the go-to news source for AARP’s 40 million members and Americans 50+; AARP Segunda Juventud, the only bilingual U.S. publication dedicated exclusively to the 50+ Hispanic community; and our website, AARP.org. AARP Foundation is an affiliated charity that provides security, protection, and empowerment to older persons in need with support from thousands of volunteers, donors, and sponsors. We have staffed offices in all 50 states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands.

The majority of companies are looking at where to cut expenses during this economically challenging time.  The unsophisticated manager many times will look to the higher wage earners of the organization to see if there is room to make cuts.  Unfortunately, this leads to the older worker who has some tenure within the organization.  Not only is this consideration dangerous as these folks are in a protected class, it is dangerous as some of the best intellectual property your company has will walk out the door with that older worker.

There is a great article titled Cutting Mature Workers Widens the Wisdom Deficit that presents these challenges.  I encourage all HR professionals to read it.

Looking for a simple way to quantify the knowledge loss to expect?  Read a previous blog post – Quantifying retirement risk-knowledge loss.

According to recent Nielson reports, the senior population is one of the fastest growing populations beginning to use job boards:

The vast majority of visitors to career development sites, around 17.8 million, are aged 35-49. However, Nielsen found a significant surge in visitors aged 65 and older, increasing 41% from 2.5 million unique visitors in January 2008 to 3.6 million in January 2009. 

Read the full story in the Wall Street Journal Blog.

It’s that time of the year again.  AARP is seeking applications for its ninth annual Best Employers for Workers Over 50 awards.  This is a great opportunity for recognition for those companies that are “age friendly.”  Applications are being accepted until February 13, 2009. 

List of 2008 Winners

Apply Today!!

Many people just put ‘too’ much into understanding diversity.  Diversity is not that difficult:  People are different.  We are diverse.

And people are different in more ways than just ethnicity, which is what many first think of when they hear the term ‘diversity.’  We differ from gender to religion, age to wealth and so on.  

In Business, a publication of Greenspun Media Group, did an awesome job of simplifying what ‘diversity’ is in their most recent issue with a special section titled “Guide to Marketing to Diverse Audiences.”  I suggest reading it.  There is a lot to learn… or just understand.

I look forward to when we all accept and understand diversity.

I anticipate Unity will be the next big thing. 

There’s still time to apply! The deadline is Feb. 15 for this AARP award that recognizes employers who lead the field in age-friendly workplace practices. Winners receive wide media exposure in prominent business publications, and are showcased for AARP’s 40 million members in AARP The Magazine and the AARP Bulletin. Find out more about AARP Best Employers for Workers Over 50 and download the application here

There are some graphs that just speak for themselves and really make me wonder why we spend so much time debating why we are having talent shortages.  The graph below simply displays population (generations) over the past decades.  If you just follow the ‘waves’ you will see where talent crunches will occur.  It is that easy!