Exiting the Workforce
The retirement of the huge baby boom generation will challenge the labor movement
Between 1946 and 1964, Americans gave birth to the largest generation in history, known as "the baby boom." In order to educate the boomers, we doubled national spending on public schools in the 1950s, 60s, and 70s. It was a huge national investment that has paid off in a big way.
Today, the baby boom generation is at the height of its earning power. But the baby boomers are getting older. The generation's vanguard is now over 50 and nearly all the boomers will be eligible to retire within the next 30 years. By 2030, they will double the size of the current senior population to 73 million people. Twenty percent of all Americans will be over 65. The generations just behind the baby boomers are much smaller. Today there are five people age 20 to 64 for every person over 65; by 2030, there will be slightly fewer than 3 people in the younger age group for every older person.
Can you imagine how this will affect the future strength of the labor movement? Millions of union members will be retiring at a time when there will be fewer younger workers to replace them in the rank and file.
The boomers' retirement promises to be an enormous challenge for organized labor — similar in scope to industrial globalization or the privatization of public jobs.
The Workforce is Continuing to Get Older
- By 2005, 37 percent of all workers will be 45 and over.
- In the last 15 years, union members age 25-34 declined from 30 percent of membership to 20 percent.
- At the same time, union members age 45 to 54 increased from 20 percent of membership to 30 percent.
Workers are Retiring at a Younger Age
Source: Administration on Aging
The retired worker population will be younger as
workers continue to retire at earlier ages.
Retirees Today
- Currently, there are 3.5 million retired members of unions.
- Less than a third of these retirees maintain a relationship with their union.
- Every year, another 250,000 union members retire.
Outlook for the Future
Projected Increase of Union Retirees
Calculations based on 1996 Consumer Population Survey
- By 2010, the number of retiring union members will exceed 500,000 a year.
- Within the next decade, the total number of retired union members will be 5,000,000.
- Significant trends: union members are retiring earlier and living longer than ever before.
What About AFSCME?
Compared with most other unions, AFSCME is way ahead of the game. We started the AFSCME Retiree Program back in 1980 and immediately established a strong organizing agenda. As a result, the Retiree Program has added an average of 10,000 new members every year.
Today, AFSCME counts over 200,000 dues-paying members in 35 chapters and over 200 local subchapters across the country.
Our retiree members are active politically, legislatively, and in community service. They have made the AFSCME Retiree Program the largest organization of public retirees in the nation and the fastest growing retiree group in the labor movement.
It is a good thing we have come so far so fast: the average age of AFSCME's working members is 48 — slightly older than the general workforce. But, because we've built a strong retiree structure that is part of our union's fabric, AFSCME is in a good position to retain our baby-boom members in the 21st century.
The Rest of Labor
More than 65 International Unions belong to the AFL-CIO, but only a dozen or so have retiree programs of any kind. Few of these are as structured as AFSCME's or as well publicized within their unions.
This will have to change in the near future, if the labor movement is to continue as a force for progress in the U.S. Many more unions will need to make retiree organizing a priority, and the AFL-CIO will have to lead the way. If we fail to heed this call, organized labor could lose its powerful voice on behalf of America's working families — not only at the jobsite, but also in the halls of Congress and in the political arena.
Union Retiree Programs: Awareness is Low
Organizing Union Retirees
Change is already under way. The AFL-CIO recently launched a new Alliance for Retired Americans that will unite the retired members of all affiliated unions. Every International is encouraged to fully participate. If they do, the labor movement could be on the brink of building one of the most dynamic grassroots organizations in the U.S.... and ensuring labor's strength for decades to come.
AFSCME Retiree Program
1625 L Street, NW
Washington, DC 20036
202/429-1274