Demographics

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

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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.

The “age-old, old-age” disconnect in advertising.

Phillip Nones Uncategorized , , , , , , , , , , , , , , , , , ,

Here’s an interesting statistic: Consulting firm McKinsey & Co. projects that by 2010, half of all consumer spending in the United States will be generated by people age 50 or older.

It’s a reminder of just how important the Baby Boom generation has been to the U.S. economy over the past three or four decades. And now, just when you might think that power has shifted to younger generations, the McKinsey statistic helps us realize that Baby Boomers aren’t ready to leave the stage just yet.

In fact, they’re not even ready to leave center stage yet.

Here’s another interesting stat: The average age of creative personnel at ad agencies and related communications firms is … 28 years old. And the number of personnel over the age of 50? Fewer than 5%.

And therein lies the age-old, old-age disconnect.

Perhaps it isn’t surprising that ad agencies are stuffed with creative types who are mostly between the ages of 20 and 35. After all, that’s traditionally the demographic group most likely to buy and spend … and so the vast bulk of marketing dollars – traditional and emerging – are devoted to this segment (as true in the 1970s as it is today).

And of course, having a bunch of twenty-somethings spending time developing marketing pitches to other twenty-somethings makes perfect sense. It’s just that the 18-34 target is no longer where the bulk of the buying power is happening. That’s still happening with the Boomer group, whose average age as of 2009 happens to be 53.

Just how significant are “the oldsters” today? McKinsey’s statistics are telling. They include the finding that the over-50 population in the United States brings home nearly 2.5 times what the 18-34 group earns. Which makes it no surprise that the over-50 group represents more than 40% of all disposable income in the U.S.

And when you look at spending, the over-50 segment — which makes up only about 30% of total U.S. population — accounts for well over half of all packaged goods sales and three-fourths of all vacation dollar expenditures. These spendthrifts buy more than 50% of all the automobiles. They even spend significantly more than the average online shopper during the holidays – 3.5 times more, to be precise.

These are strong financial figures.

Now, consider for a moment to what degree ad creative personnel who are 20 years younger are going to really understand older consumers. Sure, they’re well-versed on the ever-growing interactive and social marketing tactics that are available today. But how likely is it that they’re actually able to craft compelling advertising and marketing messages to older consumers?

Undoubtedly, many will scoff at the very question. For one thing, these creatives grew up with Boomer parents.

But when you consider how many common, worn-out clichés one sees in the advertising that’s aimed at the over-50 set — online as well as off — it does make you wonder if the communications firms are putting their creative emphasis in the right hands!

A mobile society? Maybe not so much.

Phillip Nones Uncategorized , , , , , , , , , , , ,

The United States has long been known as one of the most mobile societies on earth. Throughout the history of our nation, Americans have seemingly always had a major collective case of wanderlust.

This was especially true during World War II when hundreds of thousands of servicemen and women found themselves posted to places far away from home. Getting a taste of unfamiliar and interesting locations — so different from what they knew growing up — many people elected not to return home from the war.

My father, who was stationed in Alaska during World War II and was mustered out of the Army Air Corps in San Francisco/Oakland, tells of acquaintences who opted to take a small cash payout and stayed in California, rather than accept free transport back to their homes in New York, Pittsburgh, rural Alabama or wherever.

In the 1950s and 1960s, the population growth of the Mountain and Pacific States plus plentiful manufacturing jobs throughout the Midwest sparked dramatic population migrations from South to North and from East to West. Families took annual vacation road trips of 1,000 miles or more, fueled by cheap gasoline and the brand-new Interstate highway system.

Today, things look much different. According to a just-released Rasmussen poll, 90% of respondents report that they have lived in the same state for at least the past five years. And nearly three-fourths report that they’ve lived in the same state for more than 20 years.

This news comes hard on the heels of the U.S. Census Department reporting that only ~35 million people changed where they lived from March 2007 to March 2008. The Census Bureau noted that this was the lowest number recorded since 1962 — when the United States had 120 million fewer people.

More recent stats for the comparable 2008-09 period aren’t yet available, but I suspect the numbers have declined even further. If so, it will represent a big change in one of America’s most unique and defining aspects — its mobility. I wonder … is another one of America’s trademark characteristics now becoming more a myth than reality?