Boomers Bypassed?

Like most people in his department, Jim feels stuck. Like them, he’s looking for another job, but with the market the way it is, he knows it’s a long shot. And with each passing day, his fear of being laid off grows, as does theirs. The only difference is that Jim is 50, two decades older than most of his colleagues.  

On the surface, older workers appear to have some advantages in the current hiring market. People age 55 and over account for the fastest-growing demographic in the labor force, while unemployment among people age 25 and under is around 10%. But older workers who find themselves unemployed or want to switch jobs seem to be worse off. A new study shows that the average age for new hires last year was 42.5, just two years older than it was at the start of 2016. Even more telling: Most of the growth is attributable, as the report notes, to “aging within occupations, [with] shifts between occupations contributing very little.” 

Or, as Flo Falayi, a senior client partner in Korn Ferry’s Leadership and Executive Development practice puts it, “Older workers are staying employed longer, but not being hired at the same rate.” Meanwhile, the US has nearly seven million 55-year-olds. “Hiring behavior is lagging behind demographic reality,” says Falayi. Numerous studies show that older workers face longer periods of unemployment and, if they do find work, often end up taking positions with lower pay or status. 

Experts say the outlook is likely to get worse before it gets better. Studies predict AI will transform 30 million jobs by 2031, when the oldest millennials (currently the largest group in the workforce) turn 50. “As each year passes, and skills requirements change, older workers feel their job prospects diminish,” says David Ellis, a senior vice president of talent transformation at Korn Ferry. 

It’s no secret that firms, while avoiding discrimination laws, value youth over experience. As companies continue slashing management layers, the years of experience required for jobs falls, as does the pay, says Dennis Deans, global human resources business partner at Korn Ferry. “It’s about matching the requirement,” he says. “A role that needs five years of experience doesn’t need someone with 20 years.” Kim Waller, a senior client partner in Korn Ferry’s Organizational Strategy practice, says firms do look to develop and retain candidates with “longer runways,” all things being equal.

AI, meanwhile, seems to be mixed blessing for older workers. Some managers may think an older worker will be slow to learn the new technology. But Ellis points out that AI will redefine business in a way that is new to younger and older workers alike. He argues that firms should hire younger digital natives adept with the technology, as well as older workers with human skills, like judgment, formed through experience, empathy, and problem-solving. Data already bears that out: According to the study, people-facing, service-related roles like sales, service operations, and brand manager experienced the largest increase in average age.  

Falayi agrees, saying success in the AI age depends more than ever on matching the right talent to the right role. Or as he sees it, “A two-year rise in the average age of new hires reflects lagging practices, not meaningful progress.” 

Learn more about Korn Ferry’s Talent Acquisition capabilities. 

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