According to Business Insider, many baby boomers are facing retirement. They are expected to live longer than prior generations. With the potential of living longer and potentially facing medical costs, many are concerned about having enough money for retirement. Some are choosing to work longer, but that is not an option for everyone. Some jobs are too physically demanding to continue and other jobs are being phased out due to technology. This will potentially result in a large population that has expertise and free time, but possibly facing constraints due to health or financial concerns. This population may be less tech-savvy than “digital natives,” but in my experience have shown a willingness to learn when given sufficient training and motivation.
The New Zealand Herald shared that today’s job seekers have an incredibly wide range of career options. A potential gap will be filling in the skilled positions left by the retiring baby boomers. Many employers are attempting to address the gap by seeking to retain baby boomers longer or offering development to current mid-level employees.
However, according to research conducted by Management Today, 70% of 40-49 year olds are seeking a “major change” related to their career. They are most notably seeking more interesting work, more balance, better income and personal development. 36% are reportedly interested in pursuing further training or qualifications.
Forbes reported that 87% of millennials find professional development or career growth opportunities to be important. Gallup research reports that 55% of millennials are not engaged (emotionally and behaviorally connected to their job). This is potentially connected to their higher likelihood to switch jobs than older workers.
While the economy is currently strong and unemployment rates are low, changing conditions signal possible declines. According to Bloomberg, interest rates are expected to continue to rise even though inflation is currently at acceptable levels. This can impact both consumer and business spending, since borrowing will become more expensive. Also, consumers with variable rate credit cards and loans will be impacted by higher payments.
Recent increased volatility has been seen in the major stock exchanges. We are currently prospering from the longest-running bull market in history. However, history indicates that markets fluctuate and a down-turn can eventually be expected. This will cause markets to contract, meaning less available capital and shrinking retirement accounts for many.
Bloomberg highlighted the likelihood of increased tariffs, beginning of the 2019, leading to decrease capital spending and slowing economic growth. Fortune reported that the workforce reductions at companies such as GM and Ford are potentially linked to the preparation for increased cost due to increased tariffs.
However, additional factors may play a role in the reductions at GM. In October, corporations such as GM and Verizon announced voluntary separation offers (18k and 44k respectively) after announcing profitable third quarters. If there are not enough volunteers, layoffs may follow. Interestingly, many of these reductions aren't largely due to current financial challenges. Both GM and Verizon have been hiring. As automotive analyst Mike Ramsey shared with the Detroit news, “It’s not that these companies don't need as many people. It's that they don't need the people they have. The people they have can't necessarily pivot to what they need.”
When possible, companies are replacing jobs with automated options. Entrepreneur.com highlighted the benefits companies face by hiring freelancers or consultants, rather than staff. Additionally, the internet allows freelancers to compete globally, which means US workers are in competition with people overseas who are willing and able to do the work much cheaper. As noted before, automation is expected to replace many jobs, with expectation that manual labor jobs will be replaced by robots by 2030.
All said, it is necessary for not only businesses, but individuals to be prepared for ongoing change. As companies transition to prepare themselves for ongoing, rapid change and seek cost-effective strategies over employee loyalty, employees must also prepare themselves for a rapidly changing job market. This means continual learning and growth as well as making strategic financial choices that leave room for the unexpected. These changes are likely to be especially challenging for low income workers in “low skill” positions, whose jobs may be eliminated.
Employers and employees are seeking changes:
There is a real and perceived need among workers to grow and find a sustainable purpose. Many workers currently feel little connection to their job, are seeking “major change,” or may need to find creative streams of income after retirement. Retirees may also benefit emotionally from finding meaningful ways to contribute to the lives of others during their extended years of retirement.
The restlessness felt by workers is mirrored by the changing needs of the marketplace. As companies are seeking more specialized workers and eliminating or outsourcing lower-skilled jobs, employees must make changes to remain competitive. Others may leave the job market in pursuit of increasingly accessible entrepreneurial endeavors.
Both groups are best served when individuals are aligned with their gifts and passions. When people are internally motivated, they have more energy and require less external management. Individuals who are fulfilled in their work will feel less drained by it and find it easier to learn and adapt.
Additional Resources:
Arruda, W. (2017, September 28). The Surprising Thing Millennials Want From Their Career. Retrieved from http://www.forbes.com/sites/williamarruda/2017/08/02/the-surprising-thing-millennials-want-from-their-career/#7d9a9e3024fc
Davenport, C., & Pierre-louis, K. (2018, November 23). U.S. Climate Report Warns of Damaged Environment and Shrinking Economy. Retrieved from https://www.nytimes.com/2018/11/23/climate/us-climate-report.html
Denning, S. (2018, January 02). Why Agile Is Eating The World. Retrieved from https://www.forbes.com/sites/stevedenning/2018/01/02/why-agile-is-eating-the-world/
Ford Prepares for Mass Layoffs After Losing $1 Billion to Trump's Trade Tariffs, Report Says. (n.d.). Retrieved from http://fortune.com/2018/10/09/ford-stock-today-layoffs-trump-trade-tariffs/
Frankel, M., & CFP. (2018, August 29). We're in the Longest Bull Market in History -- What Should You Do Now? Retrieved from https://www.fool.com/investing/2018/08/29/were-in-the-longest-bull-market-in-history-what-sh.aspx
Gillard, M. (2017, August 29). Mark Gillard: What Generation X does next. Retrieved from https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11599341
Holodny, E. (2017, November 27). 9 of the biggest problems baby boomers are facing right now. Retrieved from https://www.businessinsider.com/baby-boomers-biggest-problems-now-2017-11#boomers-who-plan-to-retire-in-their-mid-60s-to-early-70s-need-to-have-enough-money-saved-up-for-a-decade-or-two-more-than-they-might-have-in-the-past-9
How Generation X is tackling mid-career challenges. (n.d.). Retrieved from https://www.managementtoday.co.uk/generation-x-tackling-mid-career-challenges/your-career/article/1439422
Infographic: Growth of K-12 Digital Learning. (n.d.). Retrieved from https://www.connectionsacademy.com/news/growth-of-k-12-online-education-infographic
LaReau, J. L. (2018, October 31). GM offers buyouts to 18,000 salaried workers, says layoffs possible. Retrieved from https://www.freep.com/story/money/cars/general-motors/2018/10/31/gm-buyouts-salaried-workers/1831530002
Media Center. (n.d.). Retrieved from https://www.sos.state.oh.us/media-center/press-releases/2018/2018-06-21/
