Untapped Potential: The Older Workforce in America
Millions of older Americans want to keep working. As employers face a growing workforce shortage, this overlooked group may be part of the answer.
June 2, 2026
The United States is undergoing a major demographic shift. By 2034 older adults are projected to outnumber children for the first time in the nation’s history. Falling birth rates coupled with longer life expectancies are driving this shift, with significant implications for families, communities, public programs, and the economy. Older adults can play a role in strengthening the U.S. workforce that is currently facing a shortage, as many adults age 60 or older want or need to work longer. An intergenerational workforce is also beneficial to employers, as it can bring a diverse set of strengths to companies. There are opportunities for states and employers to help create conditions that support this workforce and promote economic security and healthy aging.
The Workforce Shortage
The U.S. is experiencing a worker shortage, with more open jobs than available workers. Demographic trends — including birth rates, life expectancy, and immigration patterns — influence the size of the available workforce and broader economy. When employers cannot find enough workers, businesses struggle to grow, meet demand, and maintain services. Workforce shortages also affect how many workers are contributing to payroll taxes that support public programs, like Social Security and Medicare.
With a growing aging population, the U.S. has a unique opportunity to support older adults who want or need to remain in or return to the workforce. Many older adults want to work, but face barriers in getting hired, such as age discrimination and lack of access to transportation. For some, work provides needed income. For others, it offers purpose and connection after retirement. Work may also be part-time or gig work to support older adults with caregiving responsibilities or tending to their own health needs.
Economic Security and Aging
Economic security is a major concern for many people as they age. At least 70% of Americans report being concerned or extremely concerned about financial security in older age. Social Security is the sole source of income for many older adults, although it was originally intended to be one part of a broader retirement income strategy. Today, 40% of Americans do not have any retirement savings, and more than 60% of older adults with low incomes rely on Social Security as their sole source of income.
These financial pressures can make it difficult for older adults to meet basic needs. Many older adults, particularly those with health challenges, report food insecurity, difficulty affording housing, and challenges paying utility bills. In fact, more than half of older adults in fair or poor health report these concerns.
Some older adults leave the workforce before they are financially or emotionally prepared. This can happen because of social norms around retirement age, employer practices, age discrimination, health issues, or the need to care for a family member. When retirement happens before someone is ready, it has negative consequences on financial, mental, and overall well-being. For states, these individual financial pressures can have broader implications for demand for health care, housing, nutrition, and other public supports.
Recruiting and Retaining Older Workers
Employers and state policymakers have complementary roles in supporting older workers. Employers can address many barriers older adults face by updating workplace policies and management practices. These changes can help older adults remain in the workforce and continue earning an income, while also helping employers retain experienced workers and meet business demands.
Age-Inclusive Management Strategies (AIMS) is an initiative from Transamerica Institute and the University of Iowa College of Public Health that supports employers in creating age-friendly workplaces. AIMS works with employers to understand labor participation among older adults, identify and adopt age-inclusive management strategies that fit their organizations, and evaluate implementation outcomes. AIMS is a free resource for employers and human resource professionals, and organizations can become AIMS certified.
States can also use public-private partnerships to encourage employer adoption of age-friendly practices. Colorado partnered with AIMS to support employers statewide in attracting and retaining older workers. As part of this effort, the state published a research report on age-friendly workplace programs. The report details the needs of older workers, their contributions to the workforce and the economy, and best practices employers can use to support an older workforce, such as:
While these strategies focus on older workers, they benefit workers of all ages. Health and wellness programs, professional development, and flexible caregiver policies can help many workers remain in the workforce. As shown in the chart below, people of all ages provide care for family members or friends and may need flexibility to balance employment with caregiving responsibilities.
Other examples of supporting older workers can be found in states with multisector plans for aging (MPA), such as the Longevity Ready Maryland plan. The plan includes strategies outlined to support caregivers and enhance age-friendly employer practices to reduce barriers to employment and support workers across the lifespan. One specific strategy includes creating policies that allow for more flexibility at work, and another includes implementing an age-friendly employer certification throughout the state. Similarly, the ReiMAgine Aging 2030 Massachusetts plan promotes employers adopting age-friendly practices such as flexible work hours.
Other states with MPAs, like New York and Vermont, have included initiatives in their plans like facilitating training programs for older adults and incentivizing state and private employers to recruit and retain older workers. These states are also supporting employers in understanding the value of the older workforce, and Vermont has a specific objective to increase the workforce participation of the 60+ population.
Aligning Employer Action and State Policy
Employers and state policymakers both have important roles in responding to the needs of an aging workforce. Employers can adopt age-friendly practices that help older adults remain in the workforce when they choose or need to. States can reinforce these efforts by aligning aging and workforce strategies that serve older adults, such as MPAs with initiatives that address caregiving-related barriers to employment. Together, these actions can help older adults maintain income and connection, support employers facing workforce shortages and retaining valuable experience, strengthen the U.S. economies, and promote the long-term sustainability of public programs.