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Improving Education and Training
for Older Workers
Kathy Krepcio
Executive Director
John J. Heldrich Center for Workforce Development
Edward J. Bloustein School of Planning and Public Policy
Rutgers University
The Great Recession’s Impact on Older Workers
The Great Recession left millions of Americans
unemployed, underemployed and fearful about their
future ability to remain working full time
Many workers, including workers ager 45 and older, hope that
further education and training will help them remain in their
jobs or return to work.
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What have been older job seeker’s experiences in the labor
market?
What has been their education and training experiences and
challenges?
How do they get information about education and training that
is right for them?
How do they obtain and finance education and training? What
are the barriers and opportunities?
What types of educational strategies are showing promises in
being responsive to adult learners?
What actions can be taken to improve employment prospects of 2
older workers?
Labor Market Experiences
The current labor market is challenging for all workers, but particular
difficult for today’s older workers who comprise 19 percent of the U.S.
civilian labor force (about 30 million workers).
No group of unemployed Americans has encountered greater difficulties than
older workers, including extended joblessness, substantial
underemployment, age discrimination and diminished assets set aside for
retirement
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Unemployment: While older workers are less likely to be unemployed
than younger workers, their odds of obtaining a new job if they lose
them are lower. Older workers are more likely to be among the longterm unemployed or to withdraw from the labor market altogether
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Underemployment: If older workers manage to find employment after a
spell of unemployment, they typically experience sharper declines in
income than younger workers
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Diminishing labor market attachment: Older workers are more likely
than younger workers to drop out of the labor force altogether
following a job loss or be underemployed if they return to work
(working part time when they want to work full time).
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Labor Market Experiences
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Dwindling assets and savings: Older workers suffered significant and
lingering impacts on their assets and financial security – many using
their savings to cope with the impact of the recession, claiming
retirement benefits early, experiencing declining home values, and
carrying higher debt in their older years
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Anxiety about the labor market: According to an AARP survey, many
older workers are anxious about the job market, and have little
confidence in their ability to find a job similar to their last one
without having to move or take a cut in pay. Many believe age
discrimination in hiring is widespread.
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Want and Need to Work: According to an AARP survey, many older
Americans plan to work during retirement, including part time work,
with many citing the ‘need for money’ as a critical reason.
“While older adults as a group hold a greater share of household net worth
than younger adults, substantial and irrecoverable wealth loss as a result
of the recession are at an acute stage for households with no capacity to
work or without the time to recoup their losses”
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(Board of Governors of the Federal Reserve System, 2013)
Key Demand and Supply Side Challenges
Demand Side:
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Employer reluctance to hire based on the assumption that they
will take too long to train
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Employer perceptions that older workers are less productive and
less flexible than younger workers
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Employer concern that older workers are more expensive, will be
uncomfortable reported to younger supervisors, and/or will
retire soon after starting a job
While there is evidence that these concerns are exaggerated, many
employers hold these views.
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Key Demand and Supply Side Challenges
Supply Side:
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Educational barriers to reemployment including time and expense
of education and (re) skill training, especially among older
adults with less formal education after high school or less job
relevant skills
Employer demand for more advanced computer and technology-based
skills, especially among workers from declining industries such
as manufacturing
Limited basic skills and literacy among older adults is more
significant than for younger workers, especially given the time
needed to gain these skills
Challenges regarding access, affordability and the time
necessary to acquire needed skills
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Older workers underserved by the public (WIOA) workforce system
Older workers less likely to receive on-the-job training from employers
Older workers may forego training for a variety of reasons (fear of failure,
feel they can’t keep up with the material, fear of going back to school,
uncertainty about ‘starting over’, and lack of perceived return on investment
in training vis a vis wages and ability to get a job
Time spent in training may interfere or conflict with the desire/need to get a
job and be available for work
Poor health or working limited health conditions limit
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The US Workforce Education & Training
Landscape: Understanding and Navigating a
Complex Marketplace
Skills training and further education may not be the sole remedy
for all unemployed and underemployed older workers, but getting a
job or a better job in today’s labor market often requires
upgrading skills
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Older workers with limited resources and an urgent need to earn
a living may not (or not be able to) pursue a 2- or 4-year
degree – they are more likely to desire a less time-consuming
program that will help them return to work quickly
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Adults seeking education and skills training face a daunting
marketplace of providers that make up the US postsecondary
education and training environment
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Public and private colleges and universities (2- and 4-year non
profit institutions of higher education)
Trade and proprietary schools (for profit, non-degree bearing,
occupationally focused)
Private employers, employer association & labor union sponsored
training
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Financing Education and Training:
How to Pay for It
There is a wide range of federal and state programs to help pay for
education and training; however with the exception of one very small
public workforce program (SCSEP), none of the financial aid or other
resources are reserved exclusively for adults
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Federal Student Aid (Title IV of the Higher Education
Opportunity Act)
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Pell Grants
Student Loans
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Federal Tax Based Education Benefits (credits, deductions,
savings accounts)
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Federal (Public) Workforce Training Assistance
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SCSEP, TAA, WIOA
(for adults and dislocated workers)
TANF, SNAP E&T, Vocational Rehabilitation
(for disadvantaged
populations)
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The Known Effectiveness of Training Programs:
The Value to Older Workers
The benefits of training for older workers depends on a number of
circumstances:
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How long the individual remains in the workforce
The types of courses/training completed
The industry sector
Whether the individual is transitioning from one
industry/career to another
The strength of the local economy/available jobs
The quality and affordability of the education and training
available/offered
Research examining public workforce funded programs is limited,
and the results are mixed and contradictory.
The payoff of training for older workers depends largely on 9
individual circumstances and factors that need to be weighed by
Emerging Trends in Education & Training
Programs to Help Older Adults
Over the past decade a variety of strategies have been deployed and are being tested to
help older adults and ‘working learners’ acquire education and training credentials.
Strategies include:
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Shorter duration (bachelors, masters) programs and degree attainment, or ‘stackable’ approaches
that break programs into shorter durations
Competency based education programs
Credit for Prior Learning Initiatives
Postsecondary occupational and professional certificates (standards set by educational providers)
Industry-based certificates (standards set by employers)
Work-based learning including on-the-job training and apprenticeships
E-learning, Online learning, Distance Learning and Massive Open Online Courses
What do they share? Intent is to increase access, affordability, and attainment of postsecondary
education degrees or certificates for adult learners. Customized skill attainment and contextualized
learning tailored to the adult student. Designed to save time and money.
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What Can Help?
Policy Recommendations
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Better access to information about options and a return on investment from
education and training from knowledgeable, impartial advisors both in-person and
online (unbiased information/consumer protection)
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More financial tools and assistance for adult learners, and improved financial aid
counseling for adults from qualified, independent third party counselors (resources
and tools that reflect how adults buy and consume education/consumer protection)
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Complementary social services and supports to help adults achieve their education
and training goals integrated into education and training programs and institutions
(necessary resources that can help adults stay in and finish school such as
child/elder care, transportation, flexible class schedules, learning cohorts, etc)
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Questions?
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Contact Information
Kathy Krepcio
Executive Director
John J. Heldrich Center for Workforce Development
Rutgers University
www.heldrich.rutgers.edu
[email protected]
848-932-1182
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