Who is going to fill all the open health care jobs?

Who will fill all the health care jobs? : ©inesbadzar - stock.adobe.com

The American labor force is undergoing significant demographic shifts, with a growing reliance on older workers, according to a new research report published by the Employee Benefit Research Institute. The study, “Trends in Labor Force Participation and Employment of Americans Ages 16 or Older,” provides a historical analysis of labor force participation and employment data in the United States, revealing critical trends that may impact health care workforce planning.

The report found that the prime working-age population (25-64 years old) has significantly declined, a trend that has been offset by an increasing participation of older workers in the labor force. However, despite the rising number of older individuals filling these roles, labor force participation among those aged 65 and older has not yet returned to pre-pandemic levels.

Key findings from the report include:

- Decline in Prime Working-Age Population: The share of the labor force composed of individuals aged 25-64 has fallen notably since the mid-1990s. Although participation rates among this group have remained relatively stable, the overall number of people in this age bracket has decreased. This decline is increasingly being compensated by older workers, while the share of younger workers (under 25) remains near record-low levels.

- Rising Proportion of Older Americans: Since 2008, the proportion of the U.S. population aged 65 or older has grown substantially. By 2023, this age group represented the largest share of the population, with those aged 16-24 making up the smallest proportion. This shift highlights the aging workforce and the critical role older workers are playing in the labor market.

- Gender Disparities: The report also notes that women aged 65 or older make up the largest share of the U.S. population in that age range. However, within the labor force, older men have a higher participation rate than their female counterparts, with the gender gap being most pronounced in the oldest and youngest age brackets.

- Racial and Ethnic Trends: Labor force participation rates among White Americans aged 16 and older have declined since 2000. For Black and Hispanic Americans, rates were also lower in 2023 than in 2000, but these groups saw a sharp increase in participation from 2021-2023 following a dip in 2020. In contrast, White Americans did not experience the same rebound.

Craig Copeland, director of wealth benefits research at EBRI, noted the broader implications of these shifts, particularly as the Baby Boom generation continues to age. “The aging of the labor force will play an essential role in workforce development,” Copeland said in a statement. “As the Baby Boom generation ages, they constitute a larger share of the labor force, but with this generation largely in their 60s or older, a decline in workers aged 55 or older is inevitable. The pace of this decline will depend on whether older Boomers maintain higher participation rates beyond age 65.”

For health care professionals and administrators, these findings show the importance of planning for a future workforce that is both older and potentially more diverse in terms of gender and ethnicity. As health care organizations consider their long-term staffing strategies, they will need to adapt to these demographic changes, ensuring that they can continue to provide quality care in a labor market that is evolving in both age composition and workforce participation.