U.S. older workers face longer unemployment after job losses

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Older workers face longer unemployment

Highlights

In September, about 173,000 unemployed Americans aged 55 to 64 had been out of work for at least six months, signaling longer unemployment durations for older workers.
A Bureau of Labor Statistics analysis shows only 57% of workers aged 55 to 64 who lost long-held jobs between 2023 and 2025 found new jobs by January 2026, compared to 73% for ages 25 to 54.
Older workers face pay compression and age bias, often shifting to lower-wage roles outside former fields and risking longer financially damaging transitions after layoffs.

Longer searches emerge beneath stable labor data

As reported by Business Insider, several workers in their late 50s and early 60s say layoffs have led to prolonged job searches, financial strain, and sharp drops in income after they fail to secure comparable full-time roles.

One Florida worker, Cathy Valentine, says she lost her transformation lead role in 2023 and, after three years of trying to find a similar position, now works as a prep cook at a cafe for about an eighth of her previous salary. Others can retire or quickly find similar work, but those who cannot are at risk of remaining unemployed for months or longer.

On some measures, older workers continue to post lower unemployment rates than younger Americans. But the article cites September figures showing that while half of unemployed people aged 55 to 64 are out of work for about three months, the average duration for that group is more than eight months, indicating a smaller share of workers is remaining jobless for far longer and lifting the average.

In September, about 173,000 unemployed Americans aged 55 to 64 have been out of work for at least six months. A Bureau of Labor Statistics analysis also finds that only 57% of workers in that age group who lost long-held jobs between 2023 and 2025 have found new jobs by January 2026, versus 73% for workers aged 25 to 54.

Pay pressure and age concerns weigh on reentry

Workers interviewed describe a job market in which age, pay expectations, and repeated layoffs complicate efforts to return to former career tracks. Some say they believe employers favor younger candidates who may accept lower salaries and are seen as likely to stay in the workforce longer.

Thomas Heep, a Denver resident in his 60s, says he has been seeking full-time work since losing his operations manager role in April 2025 and filed for bankruptcy earlier this year. A former Big Tech employee in her early 60s also says years of experience may now work against older candidates when companies can hire younger workers at lower pay and with fewer benefits.

For some, the result is a shift into lower-paid jobs outside their previous field. Jon McCarty, a Virginia worker in his early 60s, says he spent 18 months trying to find another software engineering job after losing his role in 2022 before taking a part-time cashier job at Home Depot, and he now believes he is unlikely to return to his former career.

Steven Fielding, 58, who has been laid off more than five times in tech communications, says he is trying to adapt by building AI skills while searching for work since April. His experience points to broader pressure on older workers who remain employable but face longer, more financially damaging transitions after layoffs.

Our earlier article examined how persistent price pressures and stagnant wages are pushing U.S. states to shift from broad-based tax cuts toward more targeted affordability relief. We noted that states still have significant budget flexibility, but policies are likely to diverge as local officials balance fiscal constraints against residents’ cost-of-living strain.

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