Fact Sheet

AARP Public Policy Institute

At 5.8 percent, the November 2012 unemployment rate for the workforce aged 55 and over was unchanged from October but below the 6.4 percent rate in November 2011.

About 1.9 million people aged 55 and over were unemployed in November.Older jobseekers were unemployed for an average of 55.4 weeks in November,

down from 57.7 weeks in October. Average duration of unemployment for this age group has been close to or above one year since March 2011.

More than 1.2 million older nonagricultural workers were working part time in November because they had no choice (involuntary part time), a slight decline from October. Women were somewhat more likely than men to be involuntary part-timers.

The Employment Situation, November 2012: Some Ups and Some Downs1

Sara E. RixAARP Public Policy Institute

Employment Change by Sector2

Total nonfarm payroll employment rose by 146,000 in November, compared to 138,000 in October.3 Some of the largest gains were in retail trade (52,600), professional and business services (43,000), leisure and hospitality (23,000), and health care (20,000). Total government employment showed little change.

Unemployment Rates

The seasonally adjusted overall unemployment rate was 7.7 percent in November, down from October’s 7.9 percent. Slightly more than 12 million people aged 16 and over reported that they were out of work and looking for a job in November, some 229,000 fewer than in October.

The November unemployment rate for people aged 55 and over was 5.8 percent,

unchanged from October but below the rate of 6.4 percent one year earlier. In December 2007, the unemployment rate for this age group was only 3.2 percent; it reached a high of 7.3 percent in August 2010. Older jobseekers were almost 16 percent of the unemployed in November.

The unemployment rate for older men was 6.2 percent in November, little changed from October’s 6.1 percent, while the rate for older women fell from 5.5 percent to 5.0 percent over the month4 (figure 1). About 1.9 million people aged 55 and over were unemployed in November, only 14,000 fewer than in October.

The unemployment rate for the workforce aged 55 and over remains lower than rates for the total labor force, prime-age workers (ages 25–54), and, especially, the younger workforce (ages 16–24) (figure 2). For all age groups,

The Employment Situation, November 2012: Some Ups and Some Downs

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both the number of unemployed and the unemployment rate are higher than they were at the start of the recession, with increases greatest for the older workforce (table 1). In all age groups in table 1 except the oldest, the number with jobs in November was still below what it was in December 2007.

Each age group has seen some improvement in its employment situation

over the past year (table 2). The number unemployed and the unemployment rate have fallen across the board, while the number employed has risen.

Duration of Unemployment

Once unemployed, older workers are, on average, out of work longer than their younger counterparts. This pattern continued in November. Average

Figure 1Unemployment Rates for Men and Women Aged 55 and Over, December 2007–November 2012*

*The rate for women is not seasonally adjusted. See text note 4. Some of the numbers in this figure may differ slightly from earlier versions due to revisions by BLS.Source: U.S. Department of Labor, Bureau of Labor Statistics, labor force statistics from the Current Population Survey, http://data.bls.gov/pdq/querytool.jsp?survey=ln.

Figure 2Unemployment Rates by Age, December 2007, June 2009, October 2012, and November 2012*

*Some of the numbers in this figure may differ slightly from earlier versions due to revisions by BLS.Source: U.S. Department of Labor, Bureau of Labor Statistics, labor force statistics from the Current Population Survey, http://data.bls.gov/pdq/querytool.jsp?survey=ln.

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duration of unemployment for older jobseekers fell from 57.7 weeks in October to 55.4 weeks in November.5 Among younger jobseekers, average duration fell more modestly—from 37.8 weeks to 37.1 weeks (table 3).

Since March 2011, the average duration of unemployment for older jobseekers has been close to or above one year. Precise comparisons prior to January 2011 are not possible because of changes in the way duration is coded.6 Nonetheless, both younger and older workers have been finding it much harder to become reemployed than after previous recessions.

As of November, more than half of all older jobseekers (53.5 percent) were “long-term unemployed”; that is, they had been out of work for 27 or more weeks. This figure is essentially unchanged from the month before.

The share of older workers who were long-term unemployed (a figure that is not affected by the top coding change in duration of unemployment) has grown significantly in recent years. In December 2007, only 22.9 percent of the older unemployed workforce was long-term unemployed. The comparable figure for the end of the recession, June 2009, was 38.2 percent (table 4).

Table 1Selected Employment Indicators, December 2007 (Start of the Recession) and

November 2012, by Age Group (seasonally adjusted)

Age

Number Employed (000s)

Number Unemployed (000s) Unemployment Rate

Dec. 2007

Nov. 2012

% Change

Dec. 2007

Nov. 2012

% Change

Dec. 2007

Nov. 2012

% Change

Total, 16+* 146,273 143,262 -2.1% 7,645 12,029 57.3% 5.0% 7.7% 54.0%16–24 19,599 18,075 -7.8% 2,600 3,346 28.7% 11.7% 15.6% 33.3%25–54 100,461 94,063 -6.4% 4,233 6,747 59.4% 4.0% 6.7% 67.5%55+ 26,243 31,119 18.6% 859 1,906 121.9% 3.2% 5.8% 81.3%

*Estimates for specific age groups may not add up to the total 16+ because the seasonal adjustments are made independently. Some figures in this table may differ from those reported previously due to revisions by BLS.Source: U.S. Department of Labor, Bureau of Labor Statistics, Labor Force Statistics from the Current Population Survey, http://data.bls.gov/pdq/querytool.jsp?survey=ln.

Table 2Selected Employment Indicators, November 2011 and November 2012

(seasonally adjusted)

Age

Number Employed (000s)

Number Unemployed (000s) Unemployment Rate

Nov. 2011

Nov. 2012

% Change

Nov. 2011

Nov. 2012

% Change

Nov. 2011

Nov. 2012

% Change

Total, 16+* 140,614 143,262 1.9% 13,323 12,029 -9.7% 8.7% 7.7% -11.5%16–24 17,616 18,075 2.6% 3,560 3,346 -6.0% 16.8% 15.6% -7.1%25–54 93,708 94,063 0.4% 7,719 6,747 -12.6% 7.6% 6.7% -11.8%55+ 29,264 31,119 6.3% 1,991 1,906 -4.3% 6.4% 5.8% -9.4%

*Estimates for specific age groups may not add up to the total 16+ because the seasonal adjustments are made independently. Some figures in this table may differ from those reported previously due to revisions by BLS.Source: U.S. Department of Labor, Bureau of Labor Statistics, Labor Force Statistics from the Current Population Survey, http://data.bls.gov/pdq/querytool.jsp?survey=ln.

The Employment Situation, November 2012: Some Ups and Some Downs

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Labor Force Participation

The population aged 55 and over is more likely to be in the labor force today than at the start of the recession; this age group had a participation rate of 40.7 percent in November 2012, up from 38.9 percent in December 2007. November’s rate was little changed from October’s 40.6 percent. After falling in October, the number of older Americans not in the labor force rose almost 150,000 in November.7

The Older Employed Population

Despite continuing high unemployment rates, millions of older Americans have succeeded in remaining employed, and the number with jobs has increased in most months since the start of the recession (figure 3). Since December 2007, the employed population aged

55 and over has increased by nearly 4.9 million, or by 18.6 percent (table 1).

Another way of assessing the employment situation is with the share or percentage of an age group that is employed (the employment-to-population ratio). Table 5 provides that percentage for four age groups: 16+, 16–24, 25–54, and 55+. The figure remained relatively stable during the recession for those aged 55 and over and is now somewhat higher than it was at the start of the recession. In contrast, the percentages employed in younger age groups fell during the recession and remain considerably lower than they were in December 2007.

Part Time for Economic Reasons

Part-time work appeals to many older workers interested in scaling back while remaining attached to the

Table 3Average Duration of Unemployment, Jobseekers Under Age 55 and Aged 55+,

January 2011, November 2011, October 2012, and November 2012* (not seasonally adjusted)

January 2011 November 2011 October 2012 November 2012Age

Less than 55 33.9 wks 37.3 wks 37.8 weeks 37.1 weeks55+ 44.4 wks 52.9 wks 57.7 weeks 55.4 weeks

*See text note 6 for an explanation of the BLS change in the top coding of duration of unemployment. As a result of this change, comparable data go back only to January 2011. Source: Calculated from U.S. Department of Labor, Bureau of Labor Statistics, Employment and Earnings Online, and Labor Force Statistics from the Current Population Survey, Table A-36 (November 2012) at http://www.bls.gov/cps/tables.htm.

Table 4Percent Long-term Unemployed, Jobseekers Under Age 55 and Aged 55+,

December 2007, June 2009, October 2012, and November 2012* (not seasonally adjusted)

December 2007** June 2009** October 2012 November 2012Age

Less than 55 16.6% 26.4% 39.8% 38.9%55+ 22.9% 38.2% 53.1% 53.5%

*Long-term unemployed: 27 or more weeks.**December 2007 was the official beginning of the recession and June 2009 the official end.Source: Calculated from U.S. Department of Labor, Bureau of Labor Statistics, Employment and Earnings Online and Labor Force Statistics from the Current Population Survey, Table A-36 (November 2012), at http://www.bls.gov/cps/tables.htm.

The Employment Situation, November 2012: Some Ups and Some Downs

The Employment Situation, November 2012: Some Ups and Some Downs

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labor force. However, not every part-time worker wants part-time work. In November, somewhat more than 1.2 million older nonagricultural workers were working part time because they had no choice (i.e., for economic reasons),8 about 126,000 fewer than the month before. These workers, also known as involuntary part-timers, were employed part time involuntarily either because of slack working conditions or because they could not find full-time work. In November, they were 4.2 percent of all older nonagricultural

workers, down from 4.7 percent the month before. Also in November (as in October), older women were somewhat more likely than older men to be working part time for economic reasons—4.6 percent and 3.9 percent, respectively.

The proportion of older involuntary part-timers in November was still substantially higher than it was at the start of the recession, when only 2.4 percent of older nonagricultural workers were working part time because they could not get full-time work.

Figure 3Number of Employed Persons Aged 55 and Over, December 2007–November 2012*

(in thousands)

*The numbers in the figure may differ slightly from those that appear in earlier versions due to adjustment by BLS.Source: U.S. Department of Labor, Bureau of Labor Statistics, labor force statistics from the Current Population Survey, http://data.bls.gov/pdq/querytool.jsp?survey=ln.

Table 5Share of the Population Employed (Employment-to-Population Ratio), December 2007,

June 2009, November 2011, October 2012, and November 2012, by Age Group* (seasonally adjusted)

AgeDecember

2007**June

2009**November

2011October

2012November

201216+ 62.7% 59.4% 58.5% 58.8% 58.7%16–24 52.2% 47.1% 46.1% 46.4% 46.6%25–54 79.7% 75.9% 75.1% 76.0% 75.7%55+ 37.7% 37.4% 37.8% 38.2% 38.4%

*Some of the numbers in this table may differ slightly from earlier versions due to revisions by BLS.**December 2007 was the official beginning of the recession and June 2009 the official end.Source: U.S. Department of Labor, Bureau of Labor Statistics, Labor Force Statistics from the Current Population Survey, http://data.bls.gov/pdq/querytool.jsp?survey=ln.

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Multiple Jobholders

Working more than one job may indicate an inability to find a job that pays enough or provides enough hours. Relatively few workers aged 16 and over—5.0 percent—held multiple jobs in November, slightly below the figure at the start of the recession (5.2 percent).9 In November, 4.7 percent of all workers aged 55 and over (4.5 percent of older men and 4.8 percent of older women) held more than one job.

Self-employment

Some wage and salary workers turn to self-employment upon job loss. Published monthly self-employment figures are available from the Bureau of Labor Statistics (BLS) only for unincorporated workers employed in their own business, profession, trade, or farm. (BLS regards self-employed workers who report being incorporated as employees of a corporation and thus classifies them as wage and salary workers.) The number of older, unincorporated self-employed workers in nonagricultural industries increased from fewer than 2.6 million in December 2007 to just under 3.1 million in November 2012, some 58,000 more than in October.10 As of November, 10.1 percent of older nonagricultural workers were self-employed, little changed from the 10 percent in October. For much of the period since the start of the recession, this figure has hovered around 10 percent.

Interest in Working

Most older people who are out of the labor force say that they do not want a job (96 percent in November, a figure that has shown little fluctuation since the recession began). The number of older people out of the labor force but expressing interest in work rose by about 54,000 in November. Approximately 1.7 million older non-labor force

participants said that they wanted a job in November. At the start of the recession, 826,000 older non-labor force participants reported wanting to work; by the recession’s end in June 2009, that number had risen to 1.2 million.11

At 254,000, the number of older “discouraged” workers was higher in November than it was in October (192,000); the discouraged were almost 15 percent of the population of older people who were not in the labor force but who wanted a job, up from about 12 percent the month before. Discouraged workers are not looking for work because they believe that no work is available or there are no jobs for which they would qualify (e.g., employers would find them too old; they lack the necessary schooling/training).12 When the recession began in December 2007, only 53,000 older people were classified as discouraged workers.

A Closer Look at the Older Workforce13

The older labor force is dominated by workers and jobseekers aged 55–64; about three-fourths fall into this age group. Their labor force participation rate is about three and a half times that of people aged 65 and over (65.0 percent vs. 18.7 percent in November 2012). Since the start of the recession, this rate has increased considerably more for those aged 65 and over than for those aged 55–64 (table 6).

Not surprisingly, the share of workers with jobs (the employment-to-population ratio) varies dramatically by age as well. And although both age groups (55–64 and 65+) have seen increases in the number employed since the start of the recession, the percentage increase has been greater for the older group. Also over the same period, the employment-to-population ratio has increased by

The Employment Situation, November 2012: Some Ups and Some Downs

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more than 10 percent for the older group but declined for those aged 55–64.

Both age groups have seen sharp increases in the number unemployed and their unemployment rates since the start of the recession, although the rates differed relatively little by age either at the start of the recession or in November 2012. As of November, average duration of unemployment exceeded one year for both age groups (56 weeks for those aged 55–64 and 53.5 for those aged 65

and over).14 The percentage that could be classified as long-term unemployed was lower for the older age group (table 6).

Concluding Observations

For the older population in the United States, November’s employment news was similar to October’s—some ups and some downs but overall not much of a change. On the one hand, the share of the older population with jobs was up somewhat, and fewer older workers

Table 6Selected Employment Indicators for the Population Aged 55–64 and 65+, December 2007

and November 2012 (not seasonally adjusted)

Indicator 55–64 65+Population (in 000s)

December 2007 33,025 36,603November 2012 38,566 42,557

Labor Force (in 000s)December 2007 21,175 5,984November 2012 25,054 7,943

Labor force participation rateDecember 2007 64.1% 16.3%November 2012 65.0% 18.7%

Number employed (in 000s)December 2007 20,533 5,787November 2012 23,662 7,488

Share of the population employed*December 2007 62.2% 15.8%November 2012 61.4% 17.6%

Number unemployed (in 000s)December 2007 642 197November 2012 1,393 456

Unemployment rateDecember 2007 3.0% 3.3%November 2012 5.6% 5.7%

Percentage long-term unemployed**December 2007 22.7% 23.4%November 2012 55.3% 48.0%

*Employment-to-population ratio.**Long-term unemployed: 27 or more weeks.Source: U.S. Department of Labor, Bureau of Labor Statistics, Employment and Earnings Online, January 2008 at http://www.bls.gov/opub/ee/empearn200801.pdf; and Labor Force Statistics from the Current Population Survey at http://data.bls.gov/pdq/querytool.jsp?survey=ln and www.bls.gov/cps/tables.htm (Table A-36, November 2012) .

The Employment Situation, November 2012: Some Ups and Some Downs

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1 Unless otherwise specified, “older” refers to people aged 55 and over. Employment and unemployment figures are seasonally adjusted unless otherwise noted.2 Statistics in this Fact Sheet are from U.S. Department of Labor, Bureau of Labor Statistics (BLS), The Employment Situation—November 2012, USDL-12-2366 (Washington, DC: BLS, December 7, 2012); tables in BLS’s Employment and Earnings, January 2008 and July 2009; BLS tables at http://www.bls.gov/web/empsit.supp.toc.htm; and BLS’s labor force statistics from the Current Population Survey, available at http://data.bls.gov/pdq/querytool.jsp?survey=ln. Some numbers in this Fact Sheet may differ from those reported in earlier Fact Sheets due to adjustments by BLS. 3 BLS initially reported an increase of 171,000 in nonfarm payroll employment for October. This figure has been revised to 138,000 and may be revised further. November figures are preliminary and may be revised as well. 4 The unemployment rate for men aged 55 and over is seasonally adjusted; the rate for women aged 55 and over is not. According to BLS, unemployment for women in this age group does not appear to show seasonal variation.5 Duration of unemployment figures are not seasonally adjusted.6 BLS changed its top coding of duration of unemployment. Beginning in January 2011, the Current Population Survey has allowed respondents to report durations of unemployment of up to five years, rather than up to only two years. This change was introduced because of the “unprecedented rise in the number of people with very long durations of unemployment during the recent labor market downturn.” Before this change, any duration of unemployment greater than two years was coded as two years. Estimates of average duration of unemployment are higher with a five-year upper limit than with a two-year limit. Duration prior to 2011 cannot be recalculated as the data for those unemployed longer than two years are unavailable. See U.S. Department of Labor, Bureau of Labor Statistics, Changes to Data Collected on Unemployment Duration, http://www.bls.gov/cps/duration.htm. 7 Numbers of people out of the labor force are not seasonally adjusted.8 Involuntary part-time figures are not seasonally adjusted.9 Multiple jobholder figures are not seasonally adjusted.10 Self-employment figures are not seasonally adjusted.11 Data in this section are not seasonally adjusted.12 Discouraged workers are a subset of the marginally employed (i.e., people who are not in the labor force who want a job and are available for work and who have searched for work during the prior 12 months but not in the prior four weeks). See http://www.bls.gov/cps/lfcharacteristics.htm#discouraged. 13 Data in this section are not seasonally adjusted.

Endnotes

were employed part-time because they could not find full-time work. On the other hand, the unemployment rate for the aged 55-plus workforce (5.8 percent) showed no change in November. Also, there were more older Americans who wanted a job but were not looking for one, and more of them were discouraged about their job-finding prospects.

Finally, average duration of unemployment, although somewhat lower than it was in October, remained stubbornly high among older jobseekers,

underscoring the difficulties that older workers still face in the sluggish recovery.

Note: Caution is urged in interpreting month-to-month changes in some of the employment figures. Not all figures are seasonally adjusted, and the numbers can and do fluctuate substantially over the short term due to sampling error or the small number of individuals in a particular category who may have been interviewed. Numbers over a longer period or annually adjusted figures generally provide a more reliable picture.

The Employment Situation, November 2012: Some Ups and Some Downs

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14 These statistics do not appear in table 6 because there are no comparable figures for December 2007. See text note 6 for an explanation of the change in top coding of duration of unemployment.

Fact Sheet 275, December, 2012

AARP Public Policy Institute601 E Street, NW, Washington, DC 20049www.aarp.org/ppi202-434-3910, ppi@aarp.org© 2012, AARP.Reprinting with permission only.

The Employment Situation, November 2012: Some Ups and Some Downs