Shrinking Prime Age Employee Population Filled by Older Workers

A new research report published by the Employee Benefit Research Institute (EBRI) taking a historical look at labor force participation and employment data in the United States finds the prime working age population (25 to 64 years old) has significantly fallen and is being filled by older workers. At the same time, the labor force participation rate of those ages 65 and older has yet reached its pre-pandemic level, while that of the prime working age population has reached that level.  

The report examines the U.S. civilian labor force through December 2023, using data from the U.S. Census Bureau. As the baby boom generation has aged, the American labor force has also grown older. The new research evaluates several labor force questions relating to the civilian noninstitutionalized American population, including the labor force participation rates by age and gender, shares of the U.S. population and the U.S. civilian labor force by age and gender going back to 1975.  

Key findings from the report include the following.  

• The share of the labor force between the ages of 25 and 64 has significantly fallen since the mid-1990s despite the labor force participation rates of individuals of these ages remaining near mid-1990s levels. The decrease is being driven by the smaller number of people of this age. So far, the older population has been filling the gap in the labor force, as those younger than age 25 are at near record-low levels for their share of the labor force.  
• Beginning 2008, the U.S. population over the age of 16 became increasingly composed of those ages 65 and older. By 2023, this age category made up the largest share of the population. Americans ages 16 to 24 made up the smallest proportion of this population, while those ages 45 to 54 made up the second smallest share.  
• When analyzing the U.S. population ages 16 or older by age and gender, females ages 65 or older made up the largest proportion by a sizable margin. However, males of the same age tended to make up a larger share of the labor force than females, with the labor force gaps being smallest among the youngest and oldest age ranges.  
• The labor force participation rates of those ages 16 or older were overall relatively constant from 1975 to 2023. However, participation rates rose for females and fell for males, though both genders had lower participation rates in 2023 than in 2008.  
• Labor force participation rates of white Americans ages 16 and older declined from 2000 to 2023, with the rates for Black and Hispanic Americans also being lower in 2023 than in 2000. However, the labor force participation rates for Black and Hispanic Americans increased sharply from 2021 to 2023 after falling in 2020, while this has not been the case for white Americans.