Why Are Older Workers Struggling to Find Employment?

Are older workers being pushed into AI fields? 

According to a report from the Guardian, many experienced professionals are struggling to find work in their fields, and instead are taking on roles training AI models. 

Often gig-based roles that pay US$20 per hour, these roles can be a step down for senior professionals – but are becoming more necessary as the job market grows more competitive for older workers. 

Findings from the Urban Institute show that around half of US workers aged 50 to 54 are “pushed out” of long-term roles before they expect to retire, while a survey from the Centre for aging better finds that nearly a quarter of people feel that hiring workers over 50 is not a smart business decision. 

Lifelong learning in the workplace

According to research from the CIPD, older workers are particularly exposed to key trends reshaping the labour market – such as AI development and a growing need for green skills as net zero targets grow. 

The report estimates that two million jobs could be displaced by 2035 due to technological change, with older workers more likely to be impacted and less likely to have access to training compared to other employees. 

Just 47% of employees over 55 shared that they feel their current role offers good skills development – compared to 73% of workers aged between 18 and 24 – while only a quarter of over 55s believe their job has good career advancement opportunities.

Lizzie Crowley, Senior Skills Policy Advisor for the CIPD, says that this landscape has “profound implications” for both individual employees and wider economic and social policy, saying: “If changes to retirement age and the pensions crisis mean we’re all going to work for longer, we urgently need to usher in a new era of reskilling to help people develop into new roles and sectors. 

“The reskilling imperative isn’t just an economic necessity – it’s a social contract. By reimaging how we support people to learn and adapt throughout their lives, we can build a more resilient, equitable and prosperous future for everyone.”

Preparing the workforce for AI

Employees of all ages are feeling the effects of AI as the number of job cuts attributed to the technology increase. 

Companies such as Block, Oracle and Bolt have reportedly begun the process of making major cuts to their workforces in recent months, with Amrita Ahuja, CFO and COO of Block sharing at the WSJ CEO Council Summit that she believes other companies will follow a similar path, saying: “I think it’s an inevitability. As a CFO, I think it’s better to be a little bit early than to be too late here.”

With research from Reuters and Ipsos finding that 71% of Americans are concerned that AI will cause permanent job loss, new protections for workers are being introduced – including HF4369, a proposed bill in the state of Minnesota. 

Among other protections, this bill would require employees to provide staff who have been impacted by job cuts with access to upskilling or retraining programmes – helping them move into new positions within the company or transition into new employment. 

With the proposed bill requiring employers to give employees 90 days notice for AI layoffs, this bill could make moving into stable employment easier for many workers.