Age Discrimination in Hiring: Findings from Recent Research and the New Start Career Network (NSCN)

Transcription

1 Age Discrimination in Hiring: Findings from Recent Research and the New Start Career Network (NSCN) Maria Heidkamp, NSCN Director Senior Researcher, Heldrich Center October 12, 2017

2 Older Workers and Long-term Unemployment 2 Long-term Unemployment Rate, September 2017 All Ages (16+) 25.5% Age % Age % Source: U.S. Department of Labor, Bureau of Labor Statistics. Not seasonally adjusted from AARP Employment Data Digest September 2017.

3 Possible Reasons Older Workers Take Longer to Find Jobs 3 Age discrimination due to older worker stereotypes:! Not interested in acquiring new skills! Lack ambition and energy! Face cognitive and physical health challenges! Are inflexible! Are less tech savvy! Will cost more in wages and health insurance Higher reservation wages More likely to work in declining industries and face more challenging transitions

4 Age, Women, and Hiring study based on resumes with matched qualifications but varied ages sent to 4,000 employers Findings: Older women (50+) significantly less likely to receive interviews than younger women for an entry-level job. Younger workers 40% more likely to be offered an interview. Lahey later reported age discrimination kicks in by 35 for women. Source: Lahey, Joanna, Age, Women, and Hiring: An Experimental Study. NBER Working Paper No

5 Comparison of Callback Rates by Age 2015 study: 40,000 fictitious-but-realistic young, middle-aged, and older applicants applied for 13,000+ real job openings in 11 states; compared interview callback rates. 5 Findings: Age discrimination in hiring for both women and men. Middle-aged and older face discrimination; worse for those near retirement age (64-66). Women face more discrimination than men sex-plus-age Age discrimination affects senior men (age 65+) but not middleaged (around 50). Age discrimination rose during and after Great Recession: increased EEOC claims, long-term unemployment, media. Source: Neumark, David, Ian Burn, and Patrick Button "Age Discrimination and Hiring of Older Workers" Federal Reserve Board of San Francisco Economic Letter #

6 Comparison of Callback Rates by Age 6 Source: Neumark, Burn, and Button (2017), using data from Neumark, Burn, and Button (2015).

7 Age Discrimination Varies by Industry 7 Age-based stereotypes are even more prevalent in certain industries. As the EEOC has heard, for example, there is substantial evidence that age discrimination in hiring is unconcealed and rampant in the high-tech industry; the entertainment industry is also well-known for its flagrant age discrimination in hiring. Source: Written Testimony for the EEOC s June 14, 2017 meeting, The ADEA@50--More Relevant Than Ever, from Laurie McCann, Senior Attorney, AARP Foundation Litigation

8 Goal of the New Start Career Network: provide older (45+), long-term unemployed NJ job seekers with access to free, personalized career services, including web-based tools and in-person and virtual career coaching. 8 Become a newstartcareernetwork.org

9 NSCN Quick Facts (as of 10/1/17) 9! Launch Date: October 20, 2015! Current Number of Job Seeker Members: 2,827! Number of NSCN Volunteer Career Coaches: 247! Number of Members Working with Coaches: 429! Average Age of NSCN Members: 56! Education Levels: 42% have a 4-year college degree; three-quarters have a 2-year degree or higher! Former Industries: IT (17%), Finance/Insurance (15%), Health Care (12%), Professional & Business Services (12%)! Average Time Unemployed: 1.9 years

10 NSCN Core Strategies to Help Older LTU Job Seekers 10 " Combine high-tech job search tools with personal coaching " Raise employer awareness of NSCN job seekers as source of talent " Help job seekers access resources (education and training, mental health support, financial advising, energy and food assistance, peer support, job clubs, social media, job search) " Encourage members to consider nonprofits, small- and midsized employers, alternative arrangements (gig/contracts)

11 How long were you actively seeking employment before you found a job? (Source: Member Survey preliminary highlights, based on 144 who are working) 11 Not sure 8% More than 2 years 1-2 years 26% 25% 7 months to a year 31% 6 months 11% 0% 5% 10% 15% 20% 25% 30% 35%

12 Current and Former Pay (Source: Member Survey preliminary highlights, based on 144 who are working) 12 Current job is about the same pay 9% Current job is higher paying 16% Current job is lower paying 75% 0% 10% 20% 30% 40% 50% 60% 70% 80%

13 Is your new job meant to be: 13 (Source: Member Survey preliminary highlights, based on 144 who are working) Not sure, 14% Permanent, 35% Temporary, 51%

14 Maria Heidkamp