WASHINGTON: The American workforce is growing older at an unprecedented pace, according to a new survey released Tuesday by the US Census Bureau, highlighting demographic challenges for the nation’s labor market. Workers aged 55 and above have been the fastest-growing group for more than two decades, rising from 10 percent of the labor force in 1994 to 24 percent in 2022.
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The survey shows that older workers are concentrated unevenly across sectors and states. The utilities sector has seen the most dramatic increase, with 80 percent of employment in 2022 at firms where at least a quarter of employees are over 55, up from 35 percent in 2006. Manufacturing and wholesale trades have also experienced substantial growth in older worker representation. In contrast, Retail Trade and Accommodation and Food Services remain dominated by younger employees.
State-level differences are pronounced. Maine, the oldest state with a median age of 44.7, has 39 percent of employment at firms with a high share of older workers. Utah, the youngest state at 32 years, has only 14 percent. Even states with similar median ages display variation, reflecting differences in local industries and occupations.
The survey also found that older-workforce firms tend to create fewer jobs and launch fewer new establishments. Companies with 25–50 percent of employees over 55 shrank about 2 percent per year, while firms with less than 10 percent older workers grew roughly 2 percent annually. Start-ups typically employ younger workers in their 20s and 30s, reinforcing the age divide.
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Metro-level trends mirror these patterns. Nearly all of the nation’s 387 metropolitan areas saw growth in residents aged 65 and older between 2020 and 2023, while about 80 percent of metros experienced declines in children aged 0–14. Large cities like New York, Los Angeles, and Chicago have aging populations, whereas younger metros in Utah and Texas retain more children and a lower median age, shaping future labor dynamics.