A Generational Shift within the American Workforce

bmI’ve blogged before about the cultural differences between older and younger Americans in the workforce. Some observers consider the differences to be of historic significance compared to previous eras, due to the confluence of various “macro” forces driving change at an extraordinary pace.

And somewhere along the way when few were looking, the millennial generation has now become the largest cohort in the American workforce.

And it isn’t even a close call: As of this year, millennials make up nearly 45% of all American workers, whereas baby boomer generation now comprises just over a quarter of the workforce.

According to a new report by management training and consulting firm RainmakerThinking titled The Great Generational Shift, there are actually seven groups of people currently in the workplace at this moment in time:

  • Pre-Baby Boomers (born before 1946): ~1% of the American workforce
  • Baby Boomers first wave (born 1946-1954): ~11%
  • Baby Boomers second wave (born 1955-1964): ~16%
  • GenXers (born 1965-1977): ~27%
  • Millennials first wave (born 1978-1989): ~27%
  • Millennials second wave (born 1990-2000): ~17%
  • Post-Millennials (born after 2000): ~1%

roowPersonally, I don’t know anyone born before 1946 who is still in the workforce, but there are undoubtedly a few of them — one out of every 100, to be precise.

But the older members of the Baby Boomer generation are fast cycling out of the workforce as well, with more than 10,000 of them turning 70 years old every day.

By the year 2020, the “first wave” Boomers are expected to be only around 6% of the workforce.  Meanwhile, Millennials are on track to represent more than 50% of the workforce by 2020.

Now, that makes some of us feel old!

The Great Generational Shift report can be downloaded here.

Joel Kotkin: America’s Best Years Are Still Ahead

The Next Hundred Million: America in 2050 by Joel KotkinIn the study of demographics – a field that has had its share of doomsayers over the years – the irrepressible Joel Kotkin has been a continuing voice of optimism. The Distinguished Presidential Fellow in Urban Futures at Chapman University and an authority on economic, political and social trends as well as demographics, Kotkin has also been one to defend suburbia as one of the key ingredients of successful urban development.

It’s been interesting to watch how these views have played out in relation to the predilection of many in the American elite to denigrate anything pertaining to the suburban lifestyle. In their characterization, “suburbia” is synonymous with faceless neighborhoods punctuated by numbingly similar commercial strip developments featuring cookie-cutter national chain stores and restaurants. The only difference between suburban Los Angeles and suburban Chicago is the palm trees.

The suburban mindset has also been maligned by many as being obsessed with material pursuits and economic upward mobility … and possessing little if any thinking that’s “progressive.”

As an example of this side of the debate, the publication of Richard Florida’s book The Rise of the Creative Class – with its claims that metropolitan areas with high concentrations of high-tech employees, artists, musicians and gay people correlate to a higher level of economic development – articulates a theory that has been far better received by the news media and other members of the American intelligentsia.

Now, along comes Kotkin’s newest book … and with it his latest intriguing predictions. In The Next Hundred Million: America in 2050, Kotkin argues that the coming 40 years will witness a resurgent America, even as the population swells by another 100 million souls. Comparing the birth rates of America to all other developed nations, along with the continued in-migration of people from other countries – particular Asian and Latin American – Kotkin contends that no other country anywhere will enjoy such ethnic diversity. And to Kotkin, youth and diversity equate with strength.

By contrast, Kotkin maintains that “most of the developed countries in both Europe and Asia will become veritable old-age homes.” Many of these nations, with their generous social safety nets, will face huge pension obligations without having younger workers to help shoulder the costs.

Kotkin’s bottom-line prediction is that Europe and Asia will decline even as America thrives. And not just economically but also culturally: “The most affluent, culturally rich and successful nation in human history.”

Kotkin also believes that the large new numbers of Americans will flock to – where else – the suburbs, which he characterizes as “the best, most practical choice for raising their families and enjoying the benefits of community.”

No doubt, there will be those who question Mr. Kotkin’s conclusions and predictions. What about the rise of China? How will illegal versus legal immigration affect social and economic trends? How about the widening gulf between the earning power of “technocrats” and the rest of the population? Not to mention the collapse of the family unit which has rendered so much of the fabric of “inner-urban” America dysfunctional at best … hopeless at worst?

Either way, this book is very interesting and helps us reappraise some of the “big trends” in social demography. The theories of Richard Florida’s “creative class” ring decidedly less compelling today, barely six or seven years on. It’s time now to consider Joel Kotkin’s interesting theories — with the same critical eye, of course.

U.S. Workforce Trends: Revenge of the Gray-Hairs

A new study by the Pew Research Center’s Social & Demographic Trends unit reveals that when it comes to working, U.S. senior citizens aren’t ready to leave the stage. Instead, they’re staying on for encore after encore.

Incredibly, the Pew study forecasts that nearly 95% of the growth of the American labor force over the next eight years will be among workers age 55+.

What’s behind this interesting demographic development – one that has actually been taking shape for some time now? I think it’s three things:

Americans are living longer and staying healthier longer
Most seniors wish to stay active and productive as long as possible
The economic climate

This last factor has been particularly acute with the current recession that has caused the loss of retirement investment balances and real estate values. This is underscored in the Pew survey, where nearly two thirds of workers in their 50s reported that they might need to push back their expected retirement date because of the current economic conditions.

But the Pew study also makes clear that once the recession lifts, it’s highly unlikely that the aging of the workforce will reverse. That’s because many seniors find that working satisfies fundamental social needs like “being with other people” (56%), “feeling useful” (68%), and “giving me something to do” (57%).

By contrast, the other workers surveyed by Pew (ages 16 to 64) see themselves working “to support myself and my family” (88%), “live independently” (78%), and “to qualify for a pension or Social Security” (65%).

All of which proves that as people mature and move through the cycle of life, many of them make a shift in their perspective: “Work to Live” becomes “Live to Work.” For someone just entering the workforce, that might be laughably hard to believe … but the Pew survey results bear it out.

And another takeaway message to younger workers: Don’t expect your older colleagues to exit the scene anytime soon … the competition’s still hot ‘n heavy.