Tighter labor markets decrease older workers’ job insecurity and thus strengthen their bargaining power: Workers’ average self-assessed probability of not getting rehired at the same level if they lost their job, by age, 2002–2018
| Year | Ages 55–64 | Age 65+ |
|---|---|---|
| 2002 | 53.8% | 60.3% |
| 2004 | 55.0% | 61.3% |
| 2006 | 53.7% | 62.7% |
| 2010 | 64.4% | 72.3% |
| 2012 | 59.3% | 67.8% |
| 2014 | 55.1% | 63.3% |
| 2016 | 49.9% | 59.2% |
| 2018 | 45.7% | 57.2% |
Notes: Probabilities are based on workers’ responses to a questionnaire that asks, “Suppose you were to lose your job this month. What do you think are the chances that you could find an equally good job in the same line of work within the next few months?” The sample includes employees who reported working full- or part-time and excludes self-employed and partially retired workers.
Probabilities are based on workers’ responses to a questionnaire that asks, “Suppose you were to lose your job this month. What do you think are the chances that you could find an equally good job in the same line of work within the next few months?” The sample includes employees who reported working full- or part-time and excludes self-employed and partially retired workers. The chart shows the average response subtracted from 100%, since the original answers to the question measured workers’ confidence, not their insecurity.
Source: Economic Policy Institute (EPI) and Schwartz Center for Economic Policy Analysis (SCEPA) analysis of Health and Retirement Study data (RAND 2022; University of Michigan 2022).