Center on Society and Health Blog

Unemployment and Poverty Challenged Older Adults During the Recession (United States Government Accountability Office, October 2011)

A report by the GAO on the effects of the recession on the income of older adults (age 55 and over) finds that while the unemployment rate of older adults is lower than for younger workers, the rate doubled during the recession.

Income

A report by the GAO on the effects of the recession on the income of older adults (age 55 and over) finds that:

  • While the unemployment rate of older adults is lower than for younger workers, the rate doubled during the recession.  In addition, unemployed older adults are less likely to find other employment.  The median duration of unemployment rose from 11 weeks to 31 weeks among 55 to 64-year olds, and more than tripled for workers age 65 and older.
  • Household income fell by 6% for adults aged 55 to 64, but increased by 5% for adults 65 and older.
  • Poverty rates increased for adults aged 55 to 64, but declined for those 65 and older, while low incomes were more prevalent in older age groups than in younger ones.
  • Social Security retirement benefits provided most of the income for households in the lowest and middle income groups: 83% and 64% respectively.
  • About one-third of workers age 65 and older are in low-wage jobs (paying less than $11.00 per hour in 2010).
  • In 2010, 42% of adults age 75 and older had incomes below 200% of the poverty level.