Investing in an aging workforce imperative for California economy

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OPINION – Los Angeles stands at a critical juncture. As the city recovers from devastating fires and prepares for a wave of national and international events, the demand for skilled workers will surge. These challenges offer a unique opportunity to drive innovation, equity, and economic success by tapping into an often-overlooked resource: the talents and experience of older adults.

These workers represent a valuable and largely untapped resource that can revitalize our workforce, bolster economic resilience, and enhance the overall well-being of our community. As our population ages, the city faces the dual challenge of ensuring the financial security of older adults while simultaneously driving economic growth. However, these challenges are not mutually exclusive. In fact, they present an unprecedented opportunity.

The demographic landscape of Los Angeles is rapidly shifting. While the city’s younger population is declining, the number of older adults is experiencing significant growth. According to the U.S. Census, nearly 14% of Los Angeles residents are 65 or older, constituting the fastest-growing segment of the workforce. Older workers are critical to maintaining business expertise. They are a valuable asset both as workers and in their ability to train new and/or younger employees. In addition, 87% of employers say their older employees perform as well or better than younger employees. They add that 90% have as much, or more, potential to stay with the company long term.

According to a recent Public Policy Institute of California (PPIC) report on California’s aging population the labor force participation among adults aged 65–69 is expected to increase over the next 15 years, particularly among those with lower education and lifetime earnings, as many work out of necessity rather than choice. Rising living costs, insufficient retirement savings, and the desire to remain independent make continued employment essential, particularly in California, where the high cost of living exacerbates these challenges. Many of those affected by the fires are also older adults whose homes represented their primary financial asset and legacy. Employing these skilled workers enables businesses to address critical workforce needs during this pivotal time, while also supporting individuals who are rebuilding their lives.

To help employers realize the potential of older workers, the city last year issued AdvantAGE LA, the first-of-its-kind plan outlining detailed recommendations for employers to capitalize on this workforce opportunity.  While many employers acknowledge the trend of an aging workforce, few have implemented concrete strategies to effectively engage this valuable demographic.

Businesses can play a pivotal role in unlocking the potential of older workers by taking practical steps towards an age-inclusive workplace. These efforts can include implementing age-neutral hiring practices, offering flexible work arrangements, creating pathways for skills development and retraining, and fostering intergenerational programs that encourage collaboration and knowledge sharing between younger and older employees.

However, more comprehensive action is urgently needed. The California Master Plan for Aging (MPA), championed by The SCAN Foundation, underscores the critical role of older workers in California’s economic success. It emphasizes the need for multi-sector collaboration to address the unique needs and challenges faced by older workers, recognizing them as a valuable asset to the state’s economy.

Expanding the focus on the older workforce within the MPA presents a unique opportunity for California. Employers, policymakers, and community leaders must work together to implement inclusive practices that combat age discrimination, provide equitable career pathways for older workers, and support their continued professional development. By elevating this priority, California can position itself as a national leader in building an age-friendly economy.

The benefits of engaging older workers are undeniable. But now is the time for businesses to lead. As the city implements a recovery plan from the wildfires, employers can seize the opportunity to recoup losses and set a path for long-term economic success by leveraging the talents and experience of older adults. By embracing the strengths of older workers, we can build a more resilient and prosperous economy for all.

By Sarita A. Mohanty, MD, MPH, MBA, President and Chief Executive Officer of The SCAN Foundation