California will need more than just policy to prepare for an aging workforce

Nearly a quarter of California’s population will be over 60 within the next five years. Along with that shift comes a profound transformation in the workplace: Many older adults are not retiring.

With life expectancy increasing and housing and medical costs at an all-time high, older adults need ways to extend their careers or sustain new income. Whether by choice or necessity, nearly 11 million Californians will remain in the workforce beyond the traditional retirement years. 

With such a significant demographic shift, the state will inevitably see economic implications. There are many benefits when older adults contribute to the workforce, but it has now become a necessity that employment opportunities exist for them. One-third of California’s older adults live below the poverty line, and 2 out of 3 depend on Social Security for at least half of their annual income. 

As this demographic continues to grow, many with inadequate incomes, the state will see an increase in demand for social services and public assistance programs. These could include state-funded programs such as food assistance, Medicaid and housing support, all of which increase the fiscal burden on the state.

Without adequate workforce opportunities for older adults, their quality of life and our state’s economy could take a staggering hit. 

This issue has been on the radar of California policymakers. A key goal of Gov. Gavin Newsom’s “Master Plan for Aging” is to foster opportunities for older adults to contribute socially and economically through continued employment, and there are several tax credits and resources encouraging employers to hire older adults. The Work Opportunity Tax Credit, for example, incentivizes California employers to hire from target demographics, including seniors. Or the state’s Employment Training Panel, which reimburses businesses to update skills and retain their staff, is another example. 

These programs represent positive steps forward, but the challenge we face can’t be solved with policy alone. The sustainability of any solution to increase employment opportunities for older adults is contingent on the intervention of local organizations with infrastructure in place and knowledge of what the community needs. Skill training is just one part of the puzzle.

If barriers such as digital literacy or access to transportation exist in a community, educational workshops or employer incentives can only go so far.

In Santa Clara, for instance, the older adult population is projected to surge by more than 200%. In response, Successful Aging Solutions and Community Consulting and the West Valley-Mission Community College District came together to pioneer a unique program, informed by county-level data about workforce and resource needs, offering credit and noncredit course bundles curated for adults 50 and older.

It’s also positioned to create pathways to the older adult services industry, addressing the state’s critical caregiving needs as baby boomers reach their elder years. Additionally, it will boost the financial stability of our community colleges by improving enrollment — a number that took a catastrophic hit post-pandemic. 

Read More: Community college enrollment plummeted during the pandemic. Here’s one reason why it’s now turning around

Community colleges are just one example. Organizations like Tech Exchange partner with local organizations to provide digital literacy coursework to help older adults stay competitive in the workforce. Cogenerate partners with organizations to create pathways for seniors to segue into new careers. 

The key is for community organizations to assess local needs and identify ways to use available funding and resources to maximize the potential solutions to address this forthcoming population shift. In this case, we have the right state policies in place.

Still, the solutions must continue to evolve at the county level to ensure that resources adapt appropriately to the needs and characteristics of older adults. Without that, the financial future of many older adults — and the state itself — looks bleak. 

Financial support for this story was provided by the Smidt Foundation and The James Irvine Foundation.