Studies have shown that the United States workforce is aging. Due to both economic reasons and changing preferences, many Americans are choosing to work beyond the previously mandatory retirement age of 65. This change in demographics has therefore resulted in shifts in the workforce and the current business climate. This paper will look at some of these effects, which range from changes in worker and group dynamics as well as changing employment policies.

             Impact of diversity on age.

             More and more Americans continue to work after traditional retirement age, either due to inclination or necessity. According to the 2000 census conducted by the United States Census Bureau (2003), the number of workers over the age of 55 is on the rise. In fact, between 1990 and 2020, demographers predict that the population segment of people aged 65 and above will grpw at an estimated 74 percent, while the under 65 population will only grow by 24 percent. The aging population in general is reflected in the growing number of older people in the workforce.

             It is also significant that a majority of the older workers will be women. The labor force participation of women between the ages of 55 to 64, for example, increased from just 27 percent in 1950 to 49 percent in 1995. Again, this trend is expected to grow, as more Baby Boomers retire and are expected to continue working at least part-time (United States Census Bureau 2003).

             This trend towards an older population is already reflected in the median age of the American population. In 1986, the average age of the US workforce was 36. By 2005, this average age had risen to 39. This trend reflects how many Americans are postponing their retirement until later ages.

             Effects on occupation.

             Statistics from the United States Census Bureau (2003) further show that the older segments of the working population are engaged in diverse occupations. For the population that is over 65 years old, some 31 percent are employed in sales, while 30 percent are in managerial and professional fields.