Age affects dynamics of Missouri labor market

Business Today

During the last century, workforce demographics have shifted dramatically. According to the AARP, at the turn of the 20th century, 13 percent of the U.S. population was over 50. Today, more than 27 percent or nearly 80 million people are over 50. And by 2020, it will be 35 percent. Over half of America's 140 million workers will soon be over 40.

As more and more of the Baby Boom generation enters retirement, the demographics and dynamics of the nation's and Missouri's labor markets are changing.

According to a new report, "A Profile of Older Workers in Missouri," the state's workforce is aging with the percentage of workers age 45 to 64 increasing by 5.5 percent to 31 percent between 1995 and 2002. The proportion of Missourians 65 years and older who continue working has also increased slightly to 3 percent. The percentage of workers between 14 and 44 years old dropped to 66 percent in 2002 from 72 percent in 1995.

The report was generated through the Local Employment Dynamics (LED) program, a partnership between the Missouri Department of Economic Development (DED) and U.S. Census Bureau.

In addition to identifying the age composition of the state's workforce, the report identifies which industries are likely to be affected by the aging of the workforce, which are the most likely to employ older workers, which have the lowest turnover rates of older workers, and how much older workers earn.

The real estate and local/suburban transit industries have the greatest concentration of older workers, with more than one in five workers in Missouri being 55 years and older in 2002. More than 5,000 older workers are employed in Missouri's real estate industry. Air transportation and apparel manufacturing in the state also have large percentages of older workers.

The industries that created the most jobs for workers 55 years and older were business services, with 1,190 jobs created on average per quarter, followed by eating and drinking places with 1,019 jobs, and health services with 908 jobs. Business services and eating and drinking places, however, also have a high turnover rate for older workers.

The highest paying industry for workers 65 years and older was legal services at $4,122 per month. The industry with the highest average monthly earnings in 2002 was security/commodity brokers at $6,430 per month.

Having access to up-to-date information on the changing composition of Missouri's workforce will be an important guide to policy makers and business owners alike who need to know which industries and regions of the state will be most likely impacted by changes in the labor market.

At the same time, older workers will also benefit from this data as they learn where jobs are available, in what industries and at what level of earnings.

Local employment dynamics will be updated every quarter for each of the 29 partner states and its metropolitan areas, counties and Workforce Investment Areas.

The analysis of Missouri's older workers can be found on the DED Web site at www.missourieconomy.org or at http://ledh.dsd.census.gov on the U.S. Census Bureau's Web site.

BIG -- The real estate and local/suburban transit industries have the greatest concentration of older workers, with more than one in five workers in Missouri being 55 years and older in 2002. More than 5,000 older workers are employed in Missouri's real estate industry. Air transportation and apparel manufacturing in the state also have large percentages of older workers.