GAO: Older Workers' Employment, Financial Stability Rebound to Pre-Pandemic Levels

The U.S. Government Accountability Office (GAO) reports that for older workers aged 55-64, both employment rates and financial stability have largely returned to their pre-pandemic levels as of April 2023. The unemployment rate for this demographic, which peaked at 12.6% in April 2020 due to COVID-19 disruptions, dropped back to 2.2%, matching pre-pandemic figures. Older workers faced job loss and layoffs more often than younger workers, who were typically unemployed due to temporary job endings or voluntary separations. The report notes that 21% of workers aged 50 and over retired earlier than planned in 2021, reflecting the pandemic's impact on retirement decisions.

Financial resilience among older workers remained relatively stable during the pandemic. This stability was partly attributed to an increased number of early Social Security benefit claims at retirement, a trend that has since reversed. Retirement account ownership and values among households aged 55 and older also held steady throughout this period.

The GAO consulted experts who emphasized the need for the Department of Labor to identify and address legal, regulatory, and logistical barriers affecting older workers’ employment. Recommendations included enhancing targeted support initiatives, such as improving job-search assistance programs tailored to older job seekers.

This report has implications for the insurance and workforce sectors, highlighting the importance of understanding employment trends, retirement timing, and financial preparedness among older Americans. Insurers and policymakers can consider these dynamics when designing products and policies that support an aging workforce and evolving retirement landscape.