Changes In The Labor Market
Global economic trends, demographic shifts, environmental changes, and new technologies are influencing how we contribute and earn a living in today’s labor market.
Working or not – in an organization, in the gig or sharing economy, as an incubating business, or as an under-funded nonprofit – precarious and/or unpredictable income, job insecurity, and reduction of material and psychological welfare are becoming the lived reality for more people every day. These risks are intergenerational and span all education levels and socio-economic classes.
Our economic and social worlds are changing drastically
%
of organizations are replacing full-time employees with contingent workers as a cost-saving measure
56%
of workers between turning 50 and reaching retirement suffer at least one layoff, or other type of involuntary job separation
1/10
workers over 50, after a job loss, will earn as much as they did previously
20%
of the unemployed fall into the long-term unemployed (over 6 months)
2x
for the unemployed who are age 55+, long-term unemployment is nearly double (35-40%)
Source: ProPublica and the Urban Institute analyzed data from the Health and Retirement Study (HRS) about aging in America
The economic environment and demands of the labor market are always shifting.
The 2008 Great Recession had a significant and lasting impact on older workers as well as those entering the market for the first time. Many have still not gained traction in the labor market even though unemployment numbers in recent economic trends have been reported as low. That group is now joined by millions of workers worldwide reeling from the impact of the coronavirus pandemic.
Impact on Older Workers
%
of older workers (ages 55 to 64), or upwards of 4 million workers, are in alternative work arrangements (AWAs – on-call, temp, gig, independent contractor); an increase from 2005 to 2015 from 15.4% to 24.4% (source: SCEPA)
%
of households age 55 and older have neither retirement savings nor a pension (source: Government Accountability Office) (GAO)
workers age 62+, have jobs paying less than $15K per year; an increase grew from 10 to 15% from 2005 to 2015 (source: SCEPA)
Work and its Future
“America was built on an economic platform by which citizens earn their income – and their sense of worth – through employment…Our challenge is not finding more ways to fit people into “meaningful” jobs. Our challenge is helping people find and sustain work in the labor market that offers them an opportunity to make a contribution, to make them feel worthwhile, and to make meaning for themselves.”
– Ellen Ruppel Shell – The Job: Work and Its Future in a Time of Radical Change
Without a productive outlet for our creativity and decision-making, as humans we have trouble maintaining a positive outlook.
If we aren’t able to effectively earn a sustainable and meaningful livelihood, a downward spiral of shame and isolation starts negatively impacting relationships with family and friends. If not interrupted, this downward spiral has long-term implications not only for individuals but also for our communities at large.
On the broadest level, this means we have many talented individuals sidelined when there is still work to be done and problems to be solved in the world.
ICT envisions a society where every professional can sustain a career through inevitable uncertainties and in which “work” is an evolving concept.
Together, we can support one another through this unscripted journey better than if we try alone. Stay informed by joining our mailing list.