Underemployment in Midlife and Older Workers€¦ · 3. Underemployment is a problem for workers...

AARP.ORG/RESEARCH | © 2020 AARP ALL RIGHTS RESERVED DOI: AARP RESEARCH

January 2020

https://doi.org/10.26419/res.00344.001

UNDEREMPLOYMENT IN MIDLIFE ANDOLDER WORKERS

AARP.ORG/RESEARCH | © 2020 AARP ALL RIGHTS RESERVED AARP RESEARCH

Objectives and MethodologyObjectives• To understand the attitudes and experiences of workers who are

underemployed either due to the number of hours worked or because their skills do not match their current job.

Methodology• Mode: Online survey of 750 adults in the workforce ages 45 and

older.• Fielding Dates: August 12–19, 2019• Sample: The sample was drawn from AARP’s proprietary online

panel of Americans. Respondents were screened for work status and underemployment by hours (n=443) or skills (n=307). Quotas were set for age, gender, income, and region.

• Weighting: All prescreened 45+ respondents working or looking for work were weighted to the appropriate Current Population Survey (CPS) benchmarks using raked weights (Random Iterative Method [RIM] weighting). The underemployed were then selected and all others were eliminated from the file. The final weight was re-adjusted to reflect the 750 completed interviews.

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Key Findings

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Underemployment is a problem for workers ages 45 and older. • Previous AARP research has found that fourteen percent of workers are underemployed,1

either because they are working fewer than 35 hours a week and wish to be working more or because their current job does not make use of their skills or abilities. Understanding the complexities of their situation is a key factor in supporting these workers and helping them accomplish their workplace goals.

Underemployed older workers who have a skillset mismatch are less satisfied in their job, more likely to feel bothered by their situation, and more likely to say they are overqualified in their current job.

• Mismatched skill workers are also more likely to cite external factors such as the lack of jobs, age discrimination, or inability to find appropriate salary or benefits.

• Conversely, those who worked fewer hours than desired often did so because of personal circumstances (62%) such as poor health, being too busy, or caregiving for an adult or child.

1Perron, Rebecca. The Value of Experience: AARP Multicultural Work and Jobs Study. Washington, DC: AARP Research, July 2018. https://doi.org/10.26419/res.00177.000

Age discrimination is a persistent issue for many underemployed workers.• Mismatched skill workers often cite it as a reason for their underemployment. Workers over age 60 were significantly

more likely to mention discrimination as the cause of their underemployment.

https://doi.org/10.26419/res.00177.000


Key Findings

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Although some underemployed workers ages 45 and older are relatively satisfied with their situation, many are actively looking for a change. • Nearly half of underemployed workers age 45+ are currently job

hunting. However, despite being less satisfied with their situation, those who are underemployed due to a skill mismatch are less likely to be searching for a job than those who want to work more hours.

• More than four in ten underemployed job seekers have been searching for a new job for 6 months or more. Job seekers over age 60 have spent significantly longer looking for a new job than those who are younger.

• Yet few job seekers have sought professional help for their search. Notably, those who are underemployed because their skills are underutilized are less likely to have sought professional help for their job search than those who are underemployed because they are working fewer hours than they would like.

AARP.ORG/RESEARCH | © 2020 AARP ALL RIGHTS RESERVED AARP RESEARCHAARP.ORG/RESEARCH | © 2020 AARP ALL RIGHTS RESERVED AARP RESEARCH 5

TYPES OF UNDEREMPLOYMENT


Underemployed workers, who account for 14% of the 45+ workforce, are evenly split between those who are working fewer hours than desired and those who are working jobs that do not make use of their skills.

43% 43%

15%

Underemployed by hours(Working fewer than 35 hours

a week and desiring more)

Underemployed by skill(Skills used only a little or not

at all in current job)

Both

Type of Underemployment

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Q1. Which of the following best describes your current employment status? If you work more than one job, please select the appropriate response based on the total hours you work. (n=750)Q2 : Would you prefer to be working 35 hours per week or more on a regular basis? (n=431)Q3 : How much does your current job (or main job, if you have more than one) allow you to use your skills and talents? (n=428)

Underemployed by Hours: Workers age 45+ are considered underemployed by hours if they work fewer than 35 hours a week and wish to be working more.

Underemployed by Skill: Those underemployed due to a skill mismatch say they only use their skills “a little” or “not at all” in their current job.

Both*: A minority of workers fall into both categories—they are working fewer hours than desired, and they feel their skills do not match their current position.

*Due to the low number of those who qualify by both definitions, the rest of the report only discusses the two larger groups and these workers are included in each. These two groups are not mutually exclusive.



Most underemployed workers ages 45 and older have been in their current job for many years.

16%

21%

12%

20%

21%

20%

16%

17%

16%

17%

13%

18%

12%

11%

12%

20%

16%

21%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Total

By Hours

By Skill

Length in Current Job(n=750)

Less than 1 year 1 year to less than 3 years 3 years to less than 5 years5 years to less than 10 years 10 years to less than 15 years 15 or more years

Underemployed workers have endured their underemployed status for a lengthy period of time. Those underemployed due to mismatched skills have remained in their current job for a significantly longer time on average than those underemployed by hours (7 years on average vs. 6 years). Top industries in which underemployed workers are employed in include retail, healthcare, and education (see appendix for full list).

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Q15 : How long have you held your current job? If you have more than one job, please tell us about the job you consider your primary or main job. (n=750)


Six in ten underemployed older workers feel overqualified in their current position.

54%

35%*

11%

68%*

19%13%

Yes No Not sure

Overqualified for Current Job(n=750)

By Hours By Skills

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Sixty-one percent of underemployed workers admit that they feel overqualified in their current job. Those underemployed due to a skills mismatch are significantly more likely to think they’re overqualified in their current job (68%) than those who are working fewer hours than they would like (54%).

Q5 : Would you consider yourself to be overqualified for your current job? That is, you have education, experience, or skills that exceed the requirements of your current position. (n=750)*Indicates statistically significant difference at p<0.05


UNDEREMPLOYED DUE TO NOT ENOUGH HOURS WORKED


Among those who are working fewer hours than desired, personal circumstances are their main constraint.

19%

17%

16%

15%

15%

15%

11%

11%

9%

9%

5%

My health doesn't allow me to work more

I can't get hired due to my age/Age discrimination

I can't find a job using my skills

I can't find a job that has my preferred salary

I'm too busy with other things

Other

Caregiving responsibilities for an adult relative are too time consuming

I can't find a job that has my preferred benefits

Caregiving responsibilities for my children or grandchildren are too time consuming

I don't have reliable transportation to get to a job

I can't get hired due to other discrimination issues (race, ethnicity, disability, etc.)

Reasons for Being Unable to Work as Many Hours as Desired(Respondents working for less than 35 hours per week for pay, n=431; multiple responses allowed)

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More than six in ten workers (62%) who are underemployed due to working fewer hours than desired cite a reason related to personal circumstances such as health (19%), caregiving for adults (11%), or caregiving for children (9%).

Q4 : What is the reason you are unable to work as many hours as you want to? (n=431)

Age discrimination is a factor for a sizable minority of these underemployed workers.

Unsurprisingly, the percentage citing discrimination is significantly higher among workers ages 60 and older (27%) than it is for those 45–49 (7%) and 50–59 (15%).


Despite underemployment, job satisfaction is relatively high for those who lack hours.

27% 52% 16% 6%

Job Satisfaction Among Those Underemployed by Hours(n=428)

Very Satisfied Somewhat satisfied Not too satisfied Not at all satisfied

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This finding makes sense in the context of workers’ cited reasons for underemployment: Those who work fewer than 35 hours a week are more likely to cite personal circumstances as the reason for their underemployment. Moreover, many may be working in an occupation or industry that they prefer but simply lack an opportunity to do more.

Q14 : Overall, how satisfied are you in your current job? If you have more than one job, please tell us about the job you consider your primary or main job. (n=431)


Slightly over half of older workers underemployed due to too few hours are looking for another job.

Yes, full time, 29%

Yes, part time supplement, 24%

No, 47%

Looking for Work Among Underemployed Due to Hours(n=431)

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Job-seeking older workers are split on whether they are looking for full time (29%) or part time (24%) work, indicating that many may be relatively happy with the type of work they are currently doing or the industry in which they currently work.

Q9 : Are you currently looking for a new job? (n=750)


UNDEREMPLOYED DUE TO SKILLS MISMATCH


Several measures indicate that many workers ages 45 and older in jobs that don’t match their skillset are unhappy with their situation.

It bothers me a lot,31%

It bothers me a little,40%

It does not bother me,

29%

Does it bother you that you are in a job that is not

making use of your skills? (n=428)

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Q6: You mentioned you’re in a job that is not making use of your skills and talents. Does it bother you that you are in a job that is not making use of your skills? (n=428)Q14 : Overall, how satisfied are you in your current job? If you have more than one job, please tell us about the job you consider your primary or main job. (n=428)

Workers underemployed due to a skills mismatch are significantly less likely to be satisfied with their job than those who are underemployed by hours (55% satisfied vs. 79% satisfied). Further, seven in ten (71%) workers in jobs that don’t match their skillset are bothered that they don’t use their skills in their current job.

10% 45% 31% 14%

Job Satisfaction Among Those Underemployed by Skill

(n=428)

Very Satisfied Somewhat satisfied Not too satisfied Not at all satisfied


Less than a third of older workers with mismatched skills are in an industry that fits their background.

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When workers underemployed due to skill mismatches were asked if they were in an industry that could make use of their skills even if their current job does not, just three in ten agreed that it could, indicating that many may have compromised to find work and have limited potential to grow in the role using their past skills.

Q8 : Are you currently working in a field that could make use of your skills and talents, even if your current position does not? (n=428)

Yes,31% No, 49% Not sure, 20%

Are you currently working in a field that could use your skills? (among those underemployed by skill, n=428)


Most workers in jobs that do not make use of their skills cite factors out of their control; age discrimination is the top reason cited.

26%24%

19%17%16%15%14%13%

7%7%6%6%

I can’t get hired due to my age/Age discrimination

I can’t find a job that has my preferred salary

I lack some of the skills needed to get my preferred job

There aren’t enough jobs in my field (i.e., not enough demand)

I was unemployed long term and I had difficulty reentering the workforce at my previous level

I can’t find a job that has my preferred benefits

I’m too busy with other things

Other

Caregiving responsibilities for my children or grandchildren are too time consuming

I can’t get hired in my field due to other discrimination issues (race, ethnicity, disability, etc.)

Caregiving responsibilities for an adult relative are too time consuming

I don’t have reliable transportation to get to job

Reasons for Being in a Job That Does Not Make Use of Skills(Respondents whose job only uses skills ‘a little bit’ or ‘not at all’, n=428; multiple responses)

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In contrast to workers who aren’t able to get enough hours, workers in poor fit jobs are significantly more likely to cite factors outside of their control (89%). Age discrimination, in particular, plays a significant role for workers over age 60 (48% cite it as a reason).

Q7 : What is the reason you’re currently in a job that is not making use of your skills? (n=428)

Discrimination By Age

45-49 9%

50-59 25%*

60+ 48%*

*Indicates statistically significant difference at p<.05


Despite dissatisfaction with the situation, less than half of older workers in mismatched skills jobs are looking for other work.

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Despite lower current job satisfaction and being more likely to think they are overqualified for their position, those who are underemployed by skill are significantly less likely to be looking for work than those who are underemployed by hours (44% vs. 53%). Their cited reasons for underemployment may provide an explanation for this difference: Mismatched skill workers are more likely to cite external factors as the reason behind their underemployment, and may think a job search would fail because these factors are still in play.

Q9 : Are you currently looking for a new job? (n=428)

29%

31%

24%

13%*

47%

56%

By Hours

By Skill

Currently Looking for Work by Underemployment Type(n=750)

Yes, full time Yes, part time supplement No

*Indicates significant difference between category at p<0.05


JOB SEARCHING


Older job seekers see lengthier search times.

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Among those older workers who are looking for a new job, adults over age 60 have spent more time looking for work than those who are younger (49% have been searching for six months or more vs. 35% of those ages 45–49).

Q10 : How long have you been looking for a new job? (n=362)

21%

17%

25%

14%

38%

48%

34%

38%

17%

16%

19%

13%

24%

19%

22%

36%

Total

45–49

50–59

60+

Amount of Time Spent Looking for a New Job(among those looking for work, n=362)

Less than 1 month 1 month to less than 6 months 6 months to less than 1 year 1 year or more

*Indicates significant difference between category at p<0.05


Older job seekers are most likely to have used online job sites and personal connections in their search for a new job.

72%

46%

34%

30%

25%

25%

23%

15%

13%

4%

Online job sites (Indeed.com, Careerbuilder.com, etc.)

Personal connections or recommendations

Social media

LinkedIn

Local advertisements or flyers

Craigslist

Job fairs

Recruiting or headhunting firms

In-person networking events

Other

Resources Used to Find New Job(Among job seekers, n=362; multiple responses allowed)

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Notably, over half (52%) leveraged social media generally or LinkedIn specifically in their job search. Job seekers used a median of three resources, with no statistically significant differences by type of underemployment.

Q11 : What resources have you used to look for a new job in your most recent job search? (n=362)


Few have sought help for their job search.

Yes25%

No75%

Sought Professional Help(among those looking for work, n=362)

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Older job seekers who are underemployed by skill are significantly less likely to say they’ve sought professional help in finding a job (such as using a career coach, a recruiter, or a resume reviewer) than those who are underemployed by hours (19% vs. 29%).

Q12 : Have you sought professional help in finding a new job, for example, from people such as a career coach, a recruiter, or a resume reviewer? (n=362)

Underemployment Type

By Skill 19%

By Hours 29%*

*Indicates statistically significant difference at p<.05


IMPLICATIONS


Implications

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• Underemployment is a concern for many older workers, but the reasons they are underemployed are varied and complex. For example, most of those who are working less than 35 hours a week and wish to be working more are constrained by personal circumstances such as their health or their caregiving responsibilities, while those who are underemployed due to a mismatch between their job and their skillset are facing more external factors such as the job market or age discrimination.

• Consequently, solutions designed to help underemployed workers need to be equally nuanced and should take into account the reason behind their underemployment. While those seeking more hours may need help finding more flexible work arrangements that fit their personal situation, those who are mismatched in their skillset may need help finding additional training or job search coaching.

• Job seekers, particularly those who are facing a skills mismatch in their current job, may be the easiest to help. More than four in ten underemployed job seekers age 45+ have been searching for a new job for six months or more, yet few job seekers have sought professional help in their search. Those who have the wrong skillset for their current job are less likely to have used professional help thus far despite being less satisfied in their current employment than those working fewer hours.

• Age discrimination is a persistent issue for underemployed older workers, particularly those over age 60. Addressing discrimination in hiring and in the workplace and getting employers to recognize the value of older workers is a critical part of reducing underemployment for this population.


APPENDIX


Demographic Differences Among Underemployed Older Workers

UnderemploymentBy Hours By Skill

Average age of worker 56.6* 55.1Average income $57,803.99 $65,113.70*

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Workers underemployed through hours worked are more likely to be women, slightly older on average, and have a lower average income than those underemployed due to mismatched skills. Underemployment types did not differ by race/ethnicity, region, or number of children in the household.

56%*

47%

43%

53%*

0% 10% 20% 30% 40% 50% 60%

By Hours

By Skill

Gender by Underemployment Type

Women Men

*Indicates statistically significant difference at p<0.05

74%*

21%4%

67%

28%*

5%

Under $75K $75K–$150K $150K+

Income by Underemployment TypeBy Hours By Skill


Retail, healthcare, and education top list of industries for underemployed workers ages 45 and older.Those underemployed by hours are more likely to be working in education and construction, while those underemployed by skill are more likely to be working in transportation and manufacturing.

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Q16 : In what industry do you currently work? (n=750)

Total Hours Skilln=750 n=431 n=428

Retail 13% 14% 13%Healthcare,Medical

8% 10% 8%

Education 8% 10%* 6%Transportation 7% 3% 9%*Construction, Home Improvement

6% 7%* 4%

Food Service 6% 7% 5%Manufacturing 6% 3% 8%*Other 20% 22% 21%

Top Industry Types by Underemployment Reason

*Indicates statistically significant difference at p<0.05

AARP.ORG/RESEARCH | © 2020 AARP ALL RIGHTS RESERVED AARP RESEARCH 27

About AARPAARP is the nation’s largest nonprofit, nonpartisan organization dedicated to empowering Americans 50 and older to choose how they live as they age. With nearly 38 million members and offices in every state, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands, AARP works to strengthen communities and advocate for what matters most to families with a focus on health security, financial stability and personal fulfillment. AARP also works for individuals inthe marketplace by sparking new solutions and allowing carefully chosen, high-quality products and services to carry the AARP name. As a trusted source for news and information, AARP produces the nation's largest circulation publications, AARP The Magazine and AARP Bulletin. To learn more, visit www.aarp.org or follow @AARP and @AARPadvocates on social media.

http://www.aarp.org/


G. Oscar Anderson, AARP [email protected]

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Underemployment in Midlife and Older Workers€¦ · 3. Underemployment is a problem for workers...

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