That's the size of Switzerland -and it's on track to triple to $26.8 trillion by 2050
The Longevity Economy® outlook measures the 50-plus population’s overall contribution to GDP, employment, wages and salaries, and taxes through 2050, and analyzes its unique effect within different industries. The economic contribution of people
age 50-plus was worth $8.3 trillion in 2018, and it is forecast to more than triple to $26.8 trillion by 2050. The Economic Impact of Age Discrimination looks beyond this contribution to understand how workplace and hiring discrimination limits the 50-plus cohort from generating additional value and from realizing their full economic potential.
Ending age discrimination adds the entire country of Switzerland to our economy
- The 50-plus labor force has grown by 80% since 1998
- Over 40% of workers age 65-plus intend to continue working into their 70s
- The AARP found that age discrimination cost the U.S. $850 billion in GDP in 2018, a figure larger than Switzerland’s entire economy
- The 50-plus cohort contributed 40% of U.S. GDP in 2018—an outsized impact for a group that comprises just 35% of the population—and supported 88.6 million jobs and $5.7 trillion in wages and salaries
- Women age 50-plus bear the double burden of age and gender discrimination
What needs to happen to capture this potential?
- Recognize bias
- Bust myths
- Foster inclusion
- Increase Flexibility
- Create opportunities for skills development
- Invest in a multigenerational workforce
There are 117.4 million people age 50-plus in the U.S., many of whom now plan to work well past the age of 65. This growing pool of workers represents a significant asset for businesses—and for the economy—as they possess valuable skills and experience.
But age discrimination manifest in workplace behaviors, attitudes, policies and procedures, is prevalent, limiting potential gains.
This AARP study explores the foregone economic growth that could be generated if employers address age discrimination through better hiring practices and workplace retention initiatives.
All industries are impacted.
Reducing involuntary retirement, underemployment, and unemployment duration among the 50-plus population could have driven an average increase of 4.1% in GDP in 2018. In 2050, an uplift of 6.3% could be generated. The technology and automotive manufacturing sectors have the most to lose in the future.
(Download the entire study by clicking on the blue button)