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Tuesday, June 18, 2013

Age discrimination: Boomers are guilty, too

Story Appeared on Market Watch.

 It’d be nice to think that as the 76-milllion-strong baby-boom generation marches into older age it will trample age discrimination into the dust.

Don’t hold your breath.

While some say there are signs of incremental improvement—the bias may be a little less blatant than in decades past—it’s also true that mature folks probably are as likely as anyone to demonstrate a bias against people their own age.

“Older employers discriminate on the basis of age all the time,” said Donna Ballman, a Fort Lauderdale, Fla.-based lawyer, employment-law expert, and author of “Stand Up For Yourself Without Getting Fired.”

 She said that tendency isn’t limited to mature people. “I’ve seen women who gave preferential treatment to men [and] people of one race or national origin preferring employees of a different race or national origin,” Ballman said, via email.

“I don’t think baby boomers are any less likely to discriminate against their peers than other generations of older employees,” Ballman said. “Boomers were the decision makers in many of the layoffs over the past few years, and older employees were targeted in those layoffs more than any other workers.”

Others agreed. “When I talked to people, I found that some of the most age-discriminatory people out there are older people,” said Joanna Lahey, an associate professor at Texas A&M University who studies age discrimination.

In her research, Lahey found that younger workers are 40% likelier to be called in for an interview than workers age 50 or older. She conducted her labor-market research in 2002—also a period of economic stagnation, though not as severe as the Great Recession—in Boston, Mass., and St. Petersburg, Fla.

“If anything, there was more labor-market discrimination in St. Petersburg than in Boston, despite Boston’s younger population,” Lahey said. Her educated guess? “Having more mature adults around will not end age discrimination.”

Age bias in the workplace

Older workers certainly agree that age bias exists: 64% of workers aged 45 to 74 said they’ve seen or experienced age discrimination in the workplace, according to an AARP survey in November and December of about 1,500 adults in that age range.

Of that group who said they’ve seen or experienced it, fully 93% said that age bias is very or somewhat common

Just ask Dan Holgate. The 60-year-old has worked in the ceramic-tile industry his entire life. But that industry—primarily focused on new-home installations—crashed right along with the Phoenix housing market. After working continuously from age 20 through 56, Holgate was laid off in 2008.

“That was definitely a kick in the gut, that’s for sure,” said Holgate, who’s worked the occasional odd job, even a stint back at the same company, but hasn’t held a steady job since 2008.

He said he’s experienced age discrimination in layoffs—he and another older worker let go when two younger workers doing the same work were retained—as well as in hiring.

“You can see it in their eyes and hear it in their voices,” Holgate said. “Once they get down to your age, they’re not even interested.”

And, he notes, it’s often an older person making that decision. Still, he’s not sure whether it’s outright age bias or simply a focus on short-term cost-cutting. Employers, Holgate said, are thinking: “What kind of longevity can I get out of this person, what’s the minimum amount of pay I can give them, and what’s the fewest benefits I can pay this person to help make my company be profitable?

 She said that tendency isn’t limited to mature people. “I’ve seen women who gave preferential treatment to men [and] people of one race or national origin preferring employees of a different race or national origin,” Ballman said, via email. Read: 9 tips to help job seekers beat age bias.

“I don’t think baby boomers are any less likely to discriminate against their peers than other generations of older employees,” Ballman said. “Boomers were the decision makers in many of the layoffs over the past few years, and older employees were targeted in those layoffs more than any other workers.”

Others agreed. “When I talked to people, I found that some of the most age-discriminatory people out there are older people,” said Joanna Lahey, an associate professor at Texas A&M University who studies age discrimination.

In her research, Lahey found that younger workers are 40% likelier to be called in for an interview than workers age 50 or older. She conducted her labor-market research in 2002—also a period of economic stagnation, though not as severe as the Great Recession—in Boston, Mass., and St. Petersburg, Fla.

“If anything, there was more labor-market discrimination in St. Petersburg than in Boston, despite Boston’s younger population,” Lahey said. Her educated guess? “Having more mature adults around will not end age discrimination.”

When it comes to long-term unemployment, Holgate is not alone. The data support the idea that older workers face a much tougher climb getting back into paid employment.

 Job seekers age 55 and up experienced an average of 50.2 weeks of unemployment, versus 36.9 weeks for people under age 55, according to AARP, citing U.S. Labor Department data for April.

“Hard work and experience used to be of value to an employer, and that’s what older people bring to the job—they bring experience,” Holgate said. “When I was hiring people, I liked to hire experienced people because then I didn’t have to spend my valuable time training them to do their job.” But that attitude has changed, he said.

At this point, Holgate faces another problem: Being unemployed for a long time can severely limit the number of job opportunities.

He said that in recent months he’s seen a growing number of job postings that specifically prohibit unemployed people from applying.

“If you’re not working, they don’t even want you to apply. That one really threw me for a loop. I see that three or four times a week,” Holgate said. “Only applicants that are currently employed will be considered.”


Holgate said the best decision he and his wife made: Investing in her master’s degree. She’s now a nurse anesthesiologist, and the household’s sole breadwinner.

Plus, when he was working, Holgate and his wife both stashed away 10% or more of their income, padding their savings for just such a situation. And, they know how to be frugal. No more landline, down to basic cable, driving old cars and not buying new clothes.

If not for those smart money decisions, “we’d have ended up losing our house or having only one car,” Holgate said.

Economic reality

So, what’s the key to ending age bias? The economy. “If we had a stronger labor market where there is a greater demand for all workers, I think that’s the only thing that will actually change the tide,” said Jean Setzfand, vice president of financial security at AARP.

Lahey agreed. “All discrimination is less of a problem in a booming economy.” But she also pointed to education.

“If we want these things to change, we’re going to have to put a concerted effort into education, into training, into things to actually change the culture. Aging on its own is not going to cause the culture to change,” she said.

Until then, older job seekers are left battling age bias, or perhaps focusing their efforts on employers that actively reach out an older demographic.

Health-care companies, the education sector, customer-service companies such as call centers, even some old-school technology companies: All are heavily represented on AARP’s list of best employers for mature workers, Setzfand said.

And, there’s one surefire way to avoid age bias in hiring: Start your own business.