HousingWireHousingWire
As the U.S. workforce continues to age commensurately with the population at large, a new report by U.S. Money Reserve illustrates that the highest concentration of older workers — those at or over the age of 65 — are concentrated in the New England region of the country.
Based on data from the U.S. Census Bureau’s 2022 American Community Survey released last year, Vermont was found to have the highest share of its over-65 population active in the workforce. 24.8% of the retirement-age population in that state is still working, followed closely by other New England states: Massachusetts (23.8%), New Hampshire (23.0%) and Connecticut (22.6%).
“These areas tend to have both high educational attainment and high living costs,” the analysis said. “Higher educational attainment means that individuals are more likely to work in occupations that allow for continued employment even as their physical abilities decline. At the same time, higher living costs likely incentivize older individuals to remain in the workforce longer to save more for retirement.”
On the other side of the spectrum were states in the U.S. South, the report said.
“Southern states with less expensive living costs and lower levels of educational attainment tend to have the lowest rates of senior labor force participation,” it reads.
West Virginia (14.0%), Alabama (15.7%), Kentucky (16.0%) and Mississippi (16.1%) are among the lowest ranked states on the list for an active senior workforce, while Arizona (15.6%) also stands out with low levels of retirement-age workers due to its status as a popular retirement destination. Comparatively, Florida stands at 16.8%, ranking eighth on the list of the 15 “bottom” states.
In terms of major metropolitan areas, more than one-quarter (25.5%) of the senior population in the Washington, D.C. metropolitan area — encompassing Arlington and Alexandria, Virginia and parts of West Virginia — are still working. The Boston-Cambridge-Newton metro area came in second with 24.6%, followed by the Salt Lake City-Murray, Utah region (24.4%).
Major metros with the lowest numbers of seniors in the workforce are led by the Grand Rapids-Wyoming-Kentwood, Michigan area (15.7%), followed by Tampa-St. Petersburg-Clearwater, Florida (15.8%) and the Sacramento, California (16.3%) area.
“After declining for several decades, the labor force participation rate among individuals age 65 and older has experienced a notable increase since the 1980s,” the analysis said. “After reaching a low of 10.8% in 1985, the participation rate has steadily climbed, reaching 19.2% in 2023. This near doubling of worker participation aligns closely with significant changes in government policy.”
These policies include a major shift from pensions to 401(k)-based retirement plans, and gradual increases in the full retirement age recognized by the Social Security program, which incentivizes more workers to delay retirement, the report explained.
