Ongoing company layoffs and an increasing unemployment rate have inspired employees to work harder to keep their jobs. While many people at traditional retirement age are postponing retirement due to the economy, this will inevitably result in a mass exodus of people leaving the workforce at once. This could be a significant problem.
While there are a select few “recession-proof industries,” that are not experiencing the effects of the current recession, such as healthcare, education and government, employees in these industries are also postponing retirement.
According to a new survey of government managers titled “A Tidal Wave Postponed: The Economy and Public Sector Retirements,” 85 percent of state and local government employees are delaying retirement. The delayed retirements are certainly good news in the short-term as governments can benefit from these experienced workers. However, when the economy rebounds and the retirement-eligible employees retire, this could cause a tremendous strain on their ability to deliver services.
There is a significant work force issue looming with the retirement of Boomers, which is anticipated to result in significant shortages in qualified workers within the next few years. While the economic downturn has minimized current effects, they will definitely occur when the economy rebounds.
What are you doing to prepare your small business clients for these issues?
