Myth: Workers over 50 who have lost their jobs will have a very difficult time obtaining another job. Few employers will hire them.

Fact: Older workers age 50 and over are winning new jobs in approximately the same length of time as their younger counterparts. Today’s employers have a favorable impression of older workers, who are seen as being work-tested and experienced.

Employers are placing a premium on experience to help them meet their increasing worldwide competition.

The slowing economy has dampened the demand for older workers, but not by much. The number of workers 55 and older is still growing significantly, while those younger than 45 struggle with widespread job loss.

An analysis of Bureau of Labor Statistics data found that employment among older workers grew by 3.7 percent from July 2007 to July 2008. The number of employed workers ages 20 to 44 declined by an average of 1.3 percent during the same period.

The new report shatters the myth that older workers are particularly vulnerable in this economic downturn. The fact is that pared-down companies may increasingly rely on seasoned veterans to get them through the downturn. They may cost more in salary and benefits, but their experience and knowledge make them highly valued.

High-End Hiring

The Challenger analysis also belies the myth that older workers are for the most part underemployed, seemingly able to find only part-time, hourly wage positions in retail and other low-skill service industries. The BLS data show that the biggest employment gains for workers 55 and older occurred within management, professional and related occupations. The number of older workers in these positions increased by 659,000 (6.5 percent) over the last 12 months.

Some of the employment growth for the 55+ crowd is due to the fact that this population segment is rapidly expanding as baby boomers age. However, population growth is not solely responsible for the employment gains. The number of Americans 55 and older grew by 2.7 percent over the last 12 months, while their employment grew by 3.7 percent.

The preference for older workers has also resulted in a significant drop in the amount of time it takes jobseekers 50 and older to find new positions. The median job search for those hired in the second quarter lasted 4.2 months, according to the latest Challenger quarterly survey of discharged managers and executives. That was about two weeks longer than younger jobseekers, whose median search time was 3.6 months.

The demand for older workers is particularly high in sectors that continue to experience growth despite the current economic malaise. One such industry is information technology, which will see the number of computer systems analysts and network systems and data communications analysts increase by 37 percent (over 280,000 jobs) by 2016.

This growth is already occurring in some areas. In Nebraska, for example, the Omaha World Herald cited census data showing that the portion of people age 50 through 65-plus employed as IT workers has grown from 12.4 percent in 2000 to nearly 24 percent in 2006.

This downturn will not last forever. Companies that are looking beyond the next few quarters of sluggish economic growth are anticipating significant labor shortages due to the large number of potential retirements. I say ‘potential’ because some companies are taking steps now to delay those retirements, and aging workers increasingly concerned about their nest eggs are more than happy to oblige.

Incremental Retirements

A recent survey of 140 mid-size and large companies by Hewitt Associates found that 55 percent have evaluated the impact that potential retirements could have on their organizations. Sixty-one percent of the companies have developed or plan to develop special programs to retain near-retirement workers, including phased retirements that allow would-be retirees to reduce their hours (and salaries) incrementally instead of all at once.

This is a win-win for employers and potential retirees. The employer gets the benefit of retaining experienced personnel who will have more time to pass along their corporate knowledge to younger workers. Aging workers benefit by not being thrust into retirement before they are mentally and financially ready.

The percentage of older workers who say they are very confident about having enough money to retire has fallen sharply from 27 percent in 2007 to 18 percent in 2008, according to the Employee Benefit Research Institute. In a recent AARP survey of 55- to 64-year-olds, 20 percent plan to delay retirement because of current economic conditions.

Falling home values are pulling the rug out from under many Americans who had expected continued growth of their real-estate holdings to help fund their retirement. For many people, the plan of selling their home for a nice profit and moving into a one-bedroom condo was squashed by the collapse of the housing market. This may not be the case for those who stayed in one home for 25 or 30 years, but many families that kept upgrading their homes during the housing boom may now be stuck.

However, this does not mean companies will have an easy time convincing the older workers to stay on board. Would-be retirees have more options than ever before. They can go to competitors, they can switch industries, and some are even changing careers. Others may start their own consulting firms or spend their time volunteering for nonprofit groups. Companies that want their older workers to stay have to ask and ask early.

Even companies that ask nicely may be rebuffed by older workers looking forward to taking a new career direction in their ‘non-retirement’ years. The Economic Policy Institute reports that 43 percent of workers switch jobs after age 50, and 27 percent change occupations.

Elderly Entrepreneurs

The downturn has led to more and more older workers starting their own businesses. The number of self-employed workers age 55 and older has grown ten percent (251,000) since 2005.

Other older workers are embarking on second careers that they consider meaningful in terms of their impact on the community and society at large. Extrapolating on the findings of a new survey conducted among 3500 baby boomers, the MetLife Foundation and Civic Ventures estimate that between 5.3 and 8.4 million 44- to 70-year-olds have already launched encore careers. Civic Ventures defines these alternative pursuits as a new phase of work that offers not only continued income but the promise of greater meaning and the chance to do work that means something beyond themselves.

Where Older Jobseekers Are Most Welcome

Healthcare – This sector is facing major labor shortages due to retirements, heavy turnover and a decline in the number of people entering the field. Jobs are available in most areas from home healthcare aides, who require a minimum amount of training, through registered nurses.

Teaching – Many school districts are so desperate for teachers that they are finding faster ways to certify interested candidates. Those who can apply their career background in the classroom are particularly in demand.

Consulting – Whether as an independent contractor or part of a consulting firm, older jobseekers can find ample opportunities to offer their experience and wisdom.

Nonprofit Organizations – Those who are willing to volunteer or take a lower executive salary may find rewarding work in the nonprofit sector. These organizations are starved for good leaders who not only have passion for the cause, but the business acumen to manage operations.

Customer Service / Customer Relations – With complaints of poor customer service growing in volume and frequency, more and more companies may look to older generations for help. Those in their 50s, 60s and 70s were raised in an era when the customer was king (or queen) and therefore may have a better understanding of how to deliver superior customer service.

Small Business – The welcome mat is out at these firms for experienced workers, especially those who have big-league corporate experience. They are viewed as being able to suggest new and improved ways of doing things, as well as performing several different jobs.