As we continue pushing towards summer, the numbers of unemployment grow more and more shocking with every day that passes. In April, the unemployment rate hit an all-time high, and millions have applied for benefits. For those aged above 55, unemployment grew to 3.3% from 2.6%. As the pandemic goes on and we attempt to recover, this is only expected to rise.
The pandemic is something affecting everyone, but it also highlights the inequality that has been allowed to develop in the last 40 years. Sadly, some aren’t able to work from home, and many studies have shown that these people are generally on lower wages and without a college degree. There’s a telework gap, and it’s especially noticeable in older, experienced, seasoned workers.
When employees work into their late 60s, this suggests they have a degree and have a job that allows them to work from home. From the University of Chicago, Brent Neiman and Jonathan Dingel recently completed a study that showed that even though over 35% of jobs could be performed from home, and less than 25% were before the pandemic hit.
Furthermore, the study suggested that positions that can be performed at home generally employ educated workers; this includes management, scientific and technical services, and professional services. Meanwhile, food services and retail trade can’t be performed from home, and companies in this field are more likely to hire low-wage workers.
Not only is telecommuting impossible for this group, these older workers are now seeing an elimination of their jobs completely.
Working from Home – The Age Gap
At the beginning of April, six scholars from MIT performed an online survey, which allowed us to learn more about this area of society. They found that with 25,000 responses, half of all workers employed four weeks earlier were then working from home. Compared to younger workers, the number of older workers moving across to telework was smaller. While 40% between 25 and 34 made the jump, only 30% over 65 did the same.
It doesn’t end there; the Economic Policy Institute (EPI) also carried out a study that showed those over 65 as less able to work remotely. Here’s how the age groups work from home:
• 35 to 44 years – 36%
• 45 to 64 years – 32%
• 65+ years – 25%
All these studies point to one thing; the vulnerability of older workers to this worsening pandemic. While some people will have been furloughed or laid off entirely, others will be attending their workplace and risking themselves and family members to hold onto employment.
The Better News?
Despite the negatives right now, we hope this will be a warning for society and that more jobs will be designed for teleworking once the pandemic is over. In the long run, this should mean that more older workers will be able to (and will be given the option to) work from home. More flexibility in the workforce can only be positive, but that doesn’t mean reaching this stage will be easy.
If we look at the last recession, it took an average of six months for people between 25 and 34 to enter employment again. On the other hand, it took three months longer for people between 51 and 60. Therefore, we can assume that this will be the case after the coronavirus pandemic; those who work in jobs unable to be performed from home, have fewer skills, and take low wages will be hit hardest. The unemployment rate for this group could remain high even while younger generations recover.
The Great Recession
Unfortunately, it seems age discrimination is still a real concern for employees around the country. Compared to younger workers, older individuals didn’t grow up with technology, aren’t as savvy in this area, and may not be as effective with telework. At the moment, even those who are hiring are cautious of older workers because of their susceptibility to the virus.
In the time ahead, all workers could be included in retirement and health systems; this means help for experienced workers who have flexible schedules and part-time work. Elsewhere, the Trump Administration and Congress may make Social Security benefits available to low-income older Americans. If this pandemic hasn’t been a clear sign that the playing field needs to be leveled between all ages in the workforce, we don’t know what will ever encourage change.
