Hi Guys,
Experience is never out of style.
I was somewhat taken aback by the many replies that emphasized the difficulties of securing gainful employment for older workers. Note that I included the qualifier term “gainful”. I certainly concur that being a greeter at WalMart is less than a gainful and meaningful job. Of course, I recognize and respect those at the lowest end of the wealth distribution curve who must do this task for basic survival necessities.
Life is not necessarily fair, but surely some suffer this dire predicament because of their own life’s choices.
Catch22 opined that “ For several decades, from the very large and well paid middle class in MI; this state was far ahead of any other states for the number of registered motorcycles, boats, snowmobiles, travel trailers/campers….”. Further, he observed that “The big money was coming into these households and headed right back out the door via a payment book.”
This is a recipe for disaster in any state, especially in my high cost state of California. But this is a financial sin of the first magnitude that is not restricted to middle aged or senior citizens. It is pervasive throughout society, in particular a defect that government promulgates and practices.
As a little aside, this reminds me of a description of California that I received recently from an East Coast friend. On July 4th 1850 California became a state. People had no electricity; the state had no money. Almost everyone spoke Spanish. Gunfights erupted in the streets. Not much has changed in the last 161 years.
Even in the best of times, many folks are procrastinators; others are lazy; still others just want the good times to roll. These folks will likely, unless they win the lottery gamble which they frequently play to excess, never approach the magic Number that permits a safe and worry-free retirement. They are typically debt gluttons.
I have very little empathy for such misguided souls. Some folks make poor decisions their entire life. You and I are not responsible for these decisions. They were always free to choose. Of course, I exclude from this grouping the truly unfortunate folks who suffered tragic, personal Black Swan events none of which were their design or doing. Bad stuff happens. I have great empathy for this unlucky cohort.
I strongly believe that experience matters a lot in the business world. Not only does experience matter for the elite worker classes (doctors, scientists, engineers), but also for the more mundane, but essential, groupings (bakers, electricians, lumberjacks, plumbers, gardeners). The list whereby experience contributes to superior performance and outcomes is endless. I’m prepared to challenge you naysayers to identify a legitimate business endeavor where experience is not crucial to success.
Daniel Kahneman acknowledged the experience factor in his book “Thinking, Fast and Slow”. He gave numerous illustrations of how experience permits a worker to develop recognition skills and solution approaches. He used chess masters as one of his examples. In summary, he concluded that at last 10,000 hours of practical experience is needed to gain proficiency in many working assignments. Malcolm Gladwell also highlighted the 10,000 hour rule in his writings.
Growing old is neither apocalyptic nor is it a Golden Age. Education, experience, prudent savings, and wise investing enhance the odds towards Golden and away from apocalyptic. Successful seniors adjust, adapt, and survive. Sometimes events force the retiree to reenter the employment marketplace. I agree that it is not an easy task, but it is doable and the national statistics support that assertion.
Here is a Link to a government study that was completed in 2010:
http://www.bls.gov/opub/ils/summary_10_04/older_workers.htmThe reference report shows employment data dating from 1948 to 2008.
Yes, the over-55 unemployment rate has recently escalated, but it’s at a relatively low, single digit level (see figure 2). Yes, it does take an older worker a longer time to find a new position. But he does. Figure 3 demonstrates that the senior workforce participation rate has been increasing recently while the participation rate for the youngest cohort has been decreasing. Note the trendlines. I’m sure a part of that trendline is caused by poor investment decisions and a shrinking retirement nest-egg. Too bad.
Please visit the reference and form your own interpretations of the data sets.
There is little doubt that aging erodes most skill sets. Youngsters work faster; seniors work smarter. Youngsters work creatively; seniors work with consistency. Tradeoffs are plentiful that naturally include wage and benefits considerations. Some firms now seek senior employees. It is a shifting marketplace. When Bell telephone initially hired an operator staff it was all male. They soon learned that females were better and more reliable at that job and adapted accordingly.
I have sympathy for those individuals who lost positions that reflected both economic realities and age discrimination. It is equally hard on the ego and hard on the pocketbook. I appreciate that it does happen. I never faced that stressful circumstance. I like to think that I avoided that forlorn scenario by planning ahead. I did work for outfits that suffered layoffs. I escaped by working harder, by working cheaper, by changing positions, by moving to other locations, and by continuing my education. I survived by being proactive, by being flexible, and, admittedly, by being a little lucky.
Persistence can and often does win the day. There is some truth to the observation that “Those who know better don’t always do better”. Like Woody Allen remarked: “Eighty percent of success is showing up”. Just don’t abandon the hunt.
Loads of great discussion and diverse viewpoints. I enjoyed all of them. Thank you.
Best Wishes.
