Much of the debate over the economic consequences of the COVID-19 pandemic emphasizes the unemployment rate, but that focus understates the pandemic’s impact on the labor market. Although millions of workers have joined the unemployment rolls since the pandemic began, millions of others abandoned the labor force when jobs became scarce, work outside the home became hazardous, and child care demands became unbearable. And the unemployment rate doesn’t count workers who exit the labor force.

Older adults constitute a disproportionate share of labor-force dropouts. Data from the Bureau of Labor Statistics show that more adults age 65 and older left the labor force in 2020 than in any year since the US began tracking such information in 1948. Many will likely never work again, jeopardizing their immediate and long-term financial security. Efforts to make the workplace safer during the pandemic, to better prepare older workers for today’s economy, and to root out ageism could help the older adults who want to work remain employed.

Federal policymakers can take several steps to facilitate employment at older ages.

  • Make workplaces safer. Workplaces can be especially hazardous during the pandemic for older workers, who are more likely than younger workers to develop serious health problems or die if they contract COVID-19.
  • Root out ageism in the workplace. Since 1967, federal law has prohibited employees from discriminating against older workers, but age discrimination remains widespread, and a 2009 Supreme Court ruling made it more difficult for workers to prove that employers discriminate.
  • Bolster supports for older job hunters. Finding work can be especially daunting for older job seekers, who might not have looked for a job for decades and whose skills may be ill suited for in-demand jobs.

Read the full article about older adults returning to the workforce by Richard W. Johnson at Urban Institute.