More than 14 percent of Indiana workers are 55 years or older and approximately 3 percent are 65 years or older, according to a report released this week by the U.S. Census Bureau. The numbers still are growing.
Some fear that could lead to a brain drain in the work force in years to come.
"This isn't just an Indiana trend," said Matt Kinghorn, economic research analyst for the Indiana Business Research Center at Indiana University Kelley School of Business. "It's a general aging trend, especially in Midwestern and northeastern regions where there's not much migration."
The Census Bureau partnered with 31 states to compile a series of reports on older workers. The bureau defined a state's older work force as employees aged 55 years or older.
Using the Local Employment Dynamics program, the bureau divided the state's older work force by county. Leading statistics show 20 percent of Ohio County's work force was 55 or older, while 6 percent of workers in Parke County were 65 or older. Parke County also experienced the largest growth in older workers. Additionally, the report showed only two out of 92 counties in the state did not experience an increase in the number of older workers from 2001 to 2004.
According to George Raymond, vice president of human relations and labor relations at the Indiana Chamber of Commerce, Indiana employees are working longer for a variety of reasons. Some believe they have not assured a "well-being" in their retirement years, while others retain the uncertainty of Social Security benefits.
"As we live longer, we enjoy working," Raymond said. "I'm 64 and I'm planning on working until I'm at least 70 or so."
Raymond added the report indicates a shortage of job skills and questions whether older workers are willing to acquire the necessary skills to stay in the job market.
"It's one thing to look at the workers, but I think you need to look at what they're doing," Raymond said. "I think there's a real question facing the older workers: Are they going to be willing to reinvent themselves?"
More than 25 percent of older workers in Indiana most likely are to be employed in manufacturing. The manufacturing sector also was ranked tops in 59 out of 92 counties for employing older workers.
Raymond said the skill sets required for today's jobs are more advanced than traditional job skills.
"Manufacturing is changing," Raymond said. "You need to reinvent yourself and get additional training. The challenge is someone aged 60 or so to want to invest the time and effort to reinvent themselves to work for another three, four, five years."
But Kinghorn said he perceives long-term implications that may not "play out" in the near future.
"When you see an aging work force who, in 15 to 20 years, will be retiring, that's a brain drain," Kinghorn said. "A lot of younger workers are leaving Indiana looking for further types of opportunity."
In 2004, Indiana created more than 13,000 jobs quarterly for workers aged 55 to 64, but lost more than 15,000 jobs in the same age range. For workers 65 years or older, more than 5,000 jobs were created quarterly, but more than 7,000 were lost.
Kinghorn said the report could show that the older workers get in Indiana, the smaller the labor pool becomes.
"A dwindling labor supply could impact maintaining and attracting workers," he said.
Posted in Local on Sunday, October 21, 2007 12:00 am Updated: 10:31 pm.
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