Staffing Agency Trend: People Working Longer
The pool of applicants is growing, but not only because of millennials. As the newest generation enters the workforce, older workers are choosing to stay longer, postponing retirement and introducing a generational variety previously unseen in the professional world.
According to the Wall Street Journal, almost two-thirds of Americans between the ages of 45 and 60 say they plan to delay retirement. A study two years earlier found that only 42 percent of respondents expected to delay retirement, a steep increase.
The delay is related to several factors. Financial losses, layoffs, and income stagnation sustained during the last few years of recession and recovery have caused many to delay their plans for retirement. Of the increase in people delaying retirement, about half is from people forced to readjust after the economic crash hurt their savings, home value, or caused a job loss or salary reduction. In addition, longer life expectancy and improving health of older workers has allowed many to stay in the workforce past the usual retirement age.
Still other middle-aged Americans have drawn on their savings during leaner years- their original timeline to retire is no longer viable. Low interest rates and Social Security’s uncertain future has also made sticking to a retirement timeline difficult.
What impact does this have on the market? A wide range of ages are now vying for jobs. While it presents a wide pool of applicants to recruiters, it could initiate generational conflicts in the workplace that previously did not exist. Older workers may find it difficult to find jobs that are being given to younger workers. Vice versa, by older workers holding onto their jobs longer, they could block up the pipeline for younger generations trying to move up the ladder.
However, overall, the increase in the size of the labor force is seen as a positive thing that in the long run will boost the economy.
World Wide Specialty Programs has always had a singular purpose – to design, develop and provide staffing insurance products for the staffing industry. Working with over 2,000 insurance brokers nationwide, we know the staffing industry better than anyone, and can provide great options for your staffing industry insurance needs. Contact us today for more information about our staffing agency insurance solutions.