NONE OF THIS means that there havenât been some smaller successes. Most government agencies donât have a mandatory retirement age, so with an economy that provides less and less job security for workers, itâs not exactly a surprise that many government employees have decided to continue working late into their careers. âIt may not affect day-to-day operations until something really breaks down.â. Arguing that Congress should keep federal spending and revenues at their historical levels as a share of GDP is essentially the same as advocating that Congress either dramatically shift the costs of an aging population to state and local governments and to seniors and their families themselves, or massively reduce spending on children, defense, and federal investments like infrastructure and scientific research. The larger Workforce Innovation and Opportunity Act of 2014 needs to become more responsive to all older workers in its programs and services. Said Sean Morris, who leads Deloitteâs federal human capital office: âThe iconic companies, the ones most able to innovate and change to the ever increasing number of missions, are those that have a much more balanced number of generations.". Agency Details Website: Administration for Community Living . Growing Need for Social Security, Medicare, and Medicaid. Social Security, Medicare, and Medicaid play vital roles in American retirement security. Main Address: 330 C St SW For an average worker filing for Social Security this year, that would mean a $1,700 benefit cut. They have spent years warning policymakers that rules and laws were inhibiting their ability to hire and train new employees. This retirement wave is well underway: the oldest baby boomers turned 71 this year, and the youngest ones are now only nine years away from becoming eligible to claim Social Security benefits. Achieving Our Fiscal and Economic Goals, Given Demographic Realities. The 2017 budget was a case in point. Workers at the very youngest end, under the age of 24, represent just 1.2 percent of federal employees, compared with 13 percent in the private sector. At the departments of Education, Labor and Treasury, around 6 percent of the workforce is already over 65; at HUD, that figure is almost 9 percent. Private sector companies put huge resources into recruiting and training younger workers under the belief that those workers will have a different viewpoint and new ideas. After decades of predictions that haven't come true, most experts are reluctant to continue forecasting a retirement tsunami, but they are worried. The Congressional Budget Office (CBO) projects that a 65-year-old in 2047 can expect to live another 21.5 years, two years longer than the life expectancy for a 65-year-old today. A comprehensive approach should also include immigration reform. Indeed, recent action like the federal government’s decision to reinstate 65 as the age of eligibility for Old Age Security (OAS) actually works to exacerbate the adverse fiscal implications of an aging population and is out of step with international norms. We should also eliminate all disincentives for older adults to work, including age-based discrimination in the workplace. The aging of the federal workforce, they say, is a symptom of Washington’s inability to keep up with modern-day management practices and to plan for the future—as well as a … On a positive note, federal policies have begun to align in a positive way for aging in a few ways. Thirteen percent of the federal workforceâmore than 100,000 workersâare now over the age of 60. This paper This will also mean the ratio of working-age adults to senior citizens will fall from about 4 to 1 in 2016 to 2.6 to 1 in 2050, according to the Social Security Administration. Even as millennials become the biggest cohort in the labor force, the median age of all U.S. employees has crept up from 30 to 42 over the past 30 years. In fact, the GOP is implementing policies that will make this situation far worse. Surveys of employers have found that older workers are more experienced and focused on their work. âWhat weâve really seen is the impact of better health and longer lives and people wanting to work together,â said Myra Howze Shiplett, who served in various personnel positions across the federal government and also authored a report in 1999 warning of a retirement crisis. These trends are worrisome for the age of the federal workforceâand that is evident in the data. Right thing to do,â said Rebecca Contreras, former chief human capital officer at the Treasury Department, who is now president of AvantGarde, a consulting firm on human capital management. In some agencies, the upward age shift is even starker. His nominee to head OPM, the most important personnel office, hasn't yet been confirmedâhis initial nominee withdrew in August, and he named a new candidate in September. But organizational experts and former federal human resource managers say the problem is more complicated than that, and more troubling for good governance. And broadly speaking, if the government is supposed to reflect America accuratelyâmaking small and large policy decisions that affect every aspect of the countryâitâs only reasonable to expect that the federal workforce should reflect the generational makeup of the country. âItâs that smart agencies develop a plan for a pipeline. The Republican position ignores the ongoing impact of the dominant demographic trend of the last 70 years – the baby-boom generation – and other demographic changes that will dramatically reshape our economy and increase demand for federal spending for decades to come. [3] CBO, The 2017 Long-Term Budget Outlook , p. 23. CBO projects the labor force will grow much more slowly in the future than it has over the past five decades, due to the aging of the population and the stability of female workforce participation (the increased entry of women in the workforce helped fuel economic growth in the later decades of the last century). [2] CBO, The Budget and Economic Outlook: 2017 to 2027 , p. 24 (print version). Ensuring that Social Security, Medicare, and Medicaid can meet the needs of future generations of senior citizens means spending must increase above historical levels, and that means revenues must go up as well. Federal spending on all other programs (not including interest on the debt) has already fallen from 14.6 percent of GDP 50 years ago to 8.9 percent today, and CBO projects it to drop to 7.6 percent over the next 30 years. This belief isnât universal, and there isnât actually much evidence either way on whether younger people are more technologically savvy than older people. But there are a lot of reasons for skepticism that an influx of younger workers will enter the government anytime soon. (202) 226-7200, Long-Term Budget Projections (March 2017), The Budget and Economic Outlook: 2017 to 2027. Meeting the needs and unleashing the potential of older Americans through media, Senior Community Services Employment Program, National Family Caregiver Support Program. When I asked them about the effects of an aging workforce, many mentioned technology: A federal government operating in a time of smartphones and social media is staffed largely by people who grew up before the Web was invented, and many before computers arrived in homes.
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