In the Recessions of the early 80’s and the mid nineties,
many Canadian Boomers started to realize that there were no safety nets when it
came to employment. As a result, they started to invest in themselves by
upgrading their training and education. People realized that if they were going
to keep their job, they needed to invest in themselves. It paid off for the
individual, and it did pay off for business, both large and small. Employers
gained a more educated and trained labour force and workers were able to keep
or get new jobs.
What suffered was the concept of company loyalty. The idea
that one would work for two or three companies over your employment life, went
the way of the Dodo bird. Young people today realize that they are the ones who
can use their training in almost any employment setting. As a result,
employers, as Boomers retire, will have a more difficult time finding and/or
retraining workers.
A report by the AARP on how the Boomers did after the “Great
Recession” of the early 2000’s built on the theme of self reliance, which many
in Canada had learned earlier. Here is some highlights from the report:
·
A number of policy options could address the
employment and retirement income prospects of America’s boomers.
·
Encourage workers to take advantage of training and
retraining programs that their employers offer. The unemployed obviously lack
this option, but they may have had it before becoming unemployed. Not only
might the training provide boomers with marketable skills, but it also may
demonstrate to current employers that they are willing and able to learn new
ways of doing things. Training might help those without work to find a job and
those with jobs to increase productivity and stay employed. It might also help
them change careers and give them an option to remain in the labor force
longer.
·
Urge workers close to retirement to engage in training
in light of the possible need to postpone retirement or return to the labor
force after retirement.
·
Expand opportunities for jobless boomers who need
financial assistance to get the training that might enhance their career
opportunities. Offer financial assistance to cover costs, particularly in the
case of the unemployed (who may need such training the most). This training may
help offset some of the costs through lower Unemployment Insurance benefits
paid and higher tax receipts. Ensure that information on where the jobs are and
what skills employers are seeking in the way of skills is current, accurate,
and readily available.
·
Encourage workers to save, to save more if they are
already saving, and to keep retirement savings invested for that purpose. When
unemployment strikes, savings become especially vulnerable. Adequate
unemployment benefits coupled with job-training and job-search assistance might
keep some unemployed boomers from raiding their retirement savings accounts
and/or opting for Social Security prematurely.
·
Invest more resources in government efforts to monitor
and enforce anti-age discrimination laws to better protect older workers,
especially in economic downturns when labor surpluses enable employers to
discount or overlook the potential contributions of older employees or job
seekers.
·
Identify government and private programs for advising
older workers on the wisdom of starting their own business as a primary or
secondary source of income. Assisting them in doing so could improve the
financial well-being of older workers who cannot find work and provide added
income for workers who need extra money to supplement their wages from other
employment.
·
Recognize that Social Security is, and will likely
remain, the bedrock of retirement-income security in the United States. Perhaps
in a generation or two, retiring workers will have accumulated sizable funds in
their retirement savings accounts and thus be better equipped to weather
economic storms such as the one that workers have faced over the past several
years. It is highly uncertain that this will occur or that it will happen to
everybody. Unless it does, workers—including the many millions of boomers yet
to retire—will remain heavily dependent on Social Security for support in
retirement. As traditional pensions decline, Social Security remains the only
major stable retirement income source. It is critical that this program be
protected.
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