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The Crucial Role of Older Women in the Labor Force Thumbnail

The Crucial Role of Older Women in the Labor Force

Older women in the United States have emerged as a vital and growing segment of the labor force. While they faced significant declines in labor force participation during the pandemic, their long-term participation has witnessed a remarkable increase, with their ranks in the workforce swelling since 19801. The labor force engagement of women aged 55 and older not only provides critical support to the economy but is also a financial necessity for many as they strive to create a secure retirement. However, despite progress in reducing old-age poverty, a considerable number of women aged 65 and older, especially Black and Hispanic women, still live in poverty. Addressing the unique challenges faced by older women in the labor force is essential to ensure their financial security and contribute to the strength of the U.S. economy.

Supporting Economic Stability

The labor force participation of older women plays a crucial role in bolstering the economy. Many of these women depend on their earnings to make ends meet, as they often lack access to pensions or income from wealth. While Social Security benefits provide some support, they are typically lower for women compared to their male counterparts. The financial security of these women is not guaranteed, highlighting the necessity for labor force participation to sustain their livelihoods during their working years and in retirement.

Challenges and Discrimination

Older women face distinct challenges in the workplace, compounded by age and gender discrimination. They often encounter more pronounced age and gender bias during hiring processes, surpassing that experienced by younger workers or older men. This discriminatory environment is further exacerbated by the gender wage gap, which widens as women age. At ages 55-64, the gender wage gap reaches 22 cents on the dollar, and at ages 65 and older, it rises to 27 cents on the dollar. Such disparities impede older women's ability to secure fair compensation for their contributions, perpetuating financial insecurity and inequality.

Occupational Segregation and Physical Demands

A significant number of older women find themselves confined to low-wage, physically demanding occupations, such as healthcare support roles. These jobs not only make it challenging for them to meet their financial needs but can also take a toll on their aging bodies. The combination of physically demanding work and limited financial resources places older women at a higher risk of health issues and further financial strain. Overcoming the occupational segregation and ensuring fair treatment for older women in the workforce is crucial for their overall well-being and economic security.

Acknowledging Contributions and Meeting Unique Needs

As we move forward, it is imperative to recognize and value the contributions of older women in the labor force. Their dedication and efforts are vital to supporting themselves financially and upholding the U.S. economy. Policymakers, employers, and society as a whole should address the specific needs of older women to ensure their continued engagement and economic stability.

Efforts should be made to combat age and gender discrimination in hiring practices, promoting equal opportunities for all workers, regardless of their age or gender. Policies that address the gender wage gap at all stages of a woman's career, including during her older years, are essential for reducing economic disparities. Providing targeted training programs, skills development, and flexible work arrangements can support older women in transitioning to different occupations or continuing to thrive in their current roles.

Moreover, investing in retirement savings programs and expanding access to affordable healthcare can alleviate financial burdens and improve the overall well-being of older women. Recognizing and supporting the physical demands of their work is equally important to safeguard their health and prevent premature labor force exits.


The labor force participation of older women in the United States is critical to the functioning of the economy and their own financial security. However, these women face unique challenges related to discrimination, wage disparities, and physically demanding occupations. By acknowledging their contributions, addressing their specific needs, and promoting equal opportunities, we can ensure that older women continue to play an essential role in supporting themselves and the broader economy. Empowering older women in the labor force is not just a matter of justice and equality; it is an investment in a stronger, more inclusive society for all.

1.  https://www.dol.gov/agencies/wb/topics/rise-older-women-workers

This content is developed from sources believed to be providing accurate information. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.