To: Maurice Winn who wrote (48277 ) 4/7/2009 3:07:18 AM From: elmatador Respond to of 218660 the trend of a graying work force — particularly among women — has continued even as the economy fell into a deep recession. Report shows California's workforce continues to gray By Mike Swift Mercury News Posted: 04/06/2009 06:28:08 PM PDT Californians are working later in life than they once did, and the trend of a graying work force — particularly among women — has continued even as the economy fell into a deep recession. And that reflects a shift from recessions in the 1980s and 1990s when employment rates for older workers declined, according to a new report released Monday by the California Budget Project. The report offers an early hint at how the worst recession in a generation, coupled with long-term social changes, is altering the state's work force by keeping more people on the job well past 55. They are workers like Stan Nicholas, who turns 65 this year but can't afford to retire, and Liz Haenel, who at 56 wanted to semi-retire until the economy torpedoed her plans. "I figure I'll be working till I drop," said Nicholas, who was laid off more than a year ago but had to land another job to pay the bills. The employment rate of Californians age 55 to 64 increased by 8.2 percentage points from 1995 to 2008, to 63 percent of people in that age group. For workers age 65 to 69, the employment rate grew by 9.4 percentage points, to nearly 30 percent of that age group, with most of the increase coming this decade. The report is based on the budget project's analysis of data from a national U.S. Census Bureau survey. "The good news is that Californians are healthier later in life, and they are living longer so they are working longer," said Alissa Anderson, author of the report. "But the bad news is that many Californians are working later in life because they can't afford not to." With the recession withering 401(k) accounts and home values, more Californians may be forced to delay their retirements, Anderson said. It's also likely that many retirees are going back to work because they can't make ends meet without holding a job. The budget project said the findings suggest employers and policymakers should consider measures to push workers to save more during their working years. "I was one of those people who stuck their head in the sand," said Nicholas, a Santa Clara resident and former Army officer whose savings were eroded by the stock market declines. He recently started working a temporary federal job on the 2010 Census in San Jose. In California, the employment rate of women age 55 to 69 increased more than four times as much as men during the current downturn, the budget project found. The report did not study patterns in particular sectors of the economy because the survey sample was not large enough. But Anderson said the data suggests one reason why employment has continued to increase for women during the recession is that men tend to work in sectors of the economy hit the hardest by the downturn, including construction and finance. Women, meanwhile, are strongly represented in health care and education, two sectors that have suffered less. Haenel, who lives in Campbell, said she and her husband had planned to transition to a lifestyle where they were working for six months and then taking six months off. But the recession has made it extremely difficult to find temporary work. "Our plan hasn't really worked out," said Haenel, who was starting her first day of field work for the 2010 Census on Monday. With life expectancy increasing, and a smaller share of the population in poor health as they enter their late 50s and 60s, fewer people may want to stop working, Anderson said. Jobs also tend to be less physically demanding than they once were. That's the situation for Paul Grushka. He worked more than 30 years in the real estate business, but lost his job last year when his title and escrow company went belly up. Still, the main reason he's still working at 65, he said Monday, was that he feels too good physically to stay home. "I feel like I'm 40," Grushka said. "I would like to work to 75 if I'm able. I can't see myself lying around and doing crossword puzzles all day."