The Struggle of Older Workers in the Modern Job Market
In recent years, a significant portion of older Gen X and young boomer workers who have been laid off have struggled to find new employment. Nearly 25% of these individuals have not managed to secure a new job within the past decade. Additionally, about 11% of them have taken a pay cut just to land any kind of work. This trend highlights the challenges faced by this generation, as they are often overlooked, underpaid, and pushed out of the workforce at a time when their financial needs are at their peak.
Many Americans are choosing to work longer due to rising living costs and delayed retirement benefits, such as those provided by 401(k) plans. However, for older Gen X workers and young boomers, the reality is different. They are often forced into early retirement after being laid off without viable job options. According to a study analyzing data from Boston College’s 2012 to 2022 Retirement Study, approximately 14% of U.S. citizens between the ages of 50 and 65 were laid off once in the past 10 years, with 4% being fired more than once. Among those who experienced layoffs, 24% were unable to find new jobs, and this group is predominantly composed of Gen X workers aged 45 to 60, many of whom hold senior roles.
Despite their extensive industry experience and long-term career contributions, older workers often face difficulties in finding new positions. For instance, Gen Z and millennials aged 25 to 34 typically remain unemployed for an average of 19 weeks, while employees aged 55 to 64 may be unemployed for 26 weeks. Even among those who do find work, 11% of Gen Xers have had to accept lower pay.
Why Gen Xers Face Greater Challenges
There are several reasons why Gen Xers struggle to find new jobs after being laid off. As the eldest generation still actively working, they are often seen as temporary employees compared to younger generations who have more years left in their careers. Additionally, with more people working longer, there is increased competition for senior roles, making it harder for older workers to secure positions.
Many Gen Xers are working longer due to necessity rather than passion. An analysis of 2024 data revealed that around 81% of Gen X workers feel their current job doesn’t provide enough income for financial security. This sentiment is higher than that of other generations, with only 75% of Gen Z, 73% of millennials, and 71% of baby boomers expressing the same concern.
Financial pressures are compounded by responsibilities such as caring for children and aging relatives, along with the highest average debt levels of any generation in the U.S. These factors contribute to a growing sense of being overlooked in the workforce. Gen Xers are often considered the “Forgotten Generation,” despite comprising one-third of the U.S. workforce. A 2024 report from Achievers found that this group is 18% less likely to feel a strong sense of belonging at work and 30% less likely to feel meaningfully recognized.
The Impact of Ageism on Career Opportunities
Ageism has significant consequences for Gen Xers’ careers. Nearly half of workers over the age of 40 report earning less than their younger colleagues, according to a 2024 study from Resume Now. About 49% say they make less money than Gen Z and young millennial coworkers for doing the same job.
Additionally, older workers are often passed over for challenging assignments and promotions. Approximately 22% of employees aged 40 and up say their workplaces skip over older workers for high-impact projects, and 16% have witnessed a pattern of being overlooked for promotions in favor of younger staff. These trends highlight the systemic challenges that Gen Xers face in maintaining their career trajectories and financial stability.
