Study: Older workers faring worse in pandemic
For the first time in nearly 50 years, older workers face higher unemployment than their midcareer counterparts, according to a study released Tuesday by the New School university in New York City.
The pandemic has wreaked havoc on employment for people of all ages. But researchers found that during its course, workers 55 and older lost jobs sooner, were rehired slower and continue to face higher job losses than their counterparts ages 35 to 54.
It is the first time since 1973 that such a severe unemployment gap has persisted for six months or longer.
AARP said the study bolstered concerns about the economic impact of the virus on on older workers. When people over 50 lose their jobs, it typically takes them twice as long to find work as it does for younger workers, the organization representing the interests of older Americans estimates.
The pandemic “may be something that is pushing people out of the workforce and they may never get back in,” said Susan Weinstock, AARP’s vice president of financial resilience programing.
In every recession since the 1970s, older workers had persistently lower unemployment rates than midcareer workers— partly because of seniority benefits.
But in the current recession, older workers experienced higher unemployment rates than midcareer workers in each month since the onset of the pandemic.
The older workers’ unemployment rates from April through September were 1.1 percentage points higher than mid-career workers — at 9.7% versus 8.6%. The rates were compiled using a six-month rolling average
and were far worse for older workers who are black, female or lack college degrees.
Among the newly unemployed older workers is LegasseGamo, 65. Hewas laid
off in March fromhis job as a baggage handler at Reagan National airport in the Washington suburb of Arlington, Virginia.
While Gamo is afraid of exposing himself to the
coronavirus by working around others, he said he has looked for work — because he feels he has little choice but to take any job he can find.
The contractor heworked for, Eulen America, has required its laid off employees to reapply for their jobs. Gamo did so but said hehas received no reply.
The immigrant from Ethiopia supports three grandchildren, ages 6, 12 and 14, who live with him. His daughter is still employed, but her pay is not enough to cover their expenses. Gamo gets $210 a week in unemployment insurance payments and said he has spent almost all of his savings.
“I just want to get back to my job as soon as possible to supportmy family because I’m afraid we will end up homeless,” Gamo said.
The New School study focused only on workers with established careers. As a result, it did not examine workers younger than 35.
It found that the pandemic has posed a unique risk for older workers, said Teresa Ghilarducci, director of the New School’s Schwartz Center for Economic Policy Analysis.