As new cohorts of women grow older, they are participating in the labor force at higher rates than previous generations. For men the time spent in retirement or working at home has increased from 1.2 years in 1900 to 13.6 years in 1980. For women the time spent in retirement or working at home has remained relatively stable, changing from 29 years in 1900 to 30.6 years in 1980. Changes in The American Economy Downsizing encourages early retirement in order to restructure or cut the labor force. Older workers have lower unemployment rates than younger workers but need a longer time to find a job when displaced.
Many older workers take early retirement rather than face unemployment.
Early retirement, as a staff reduction technique, yields short-term savings but can be very expensive in the long run. Long Range Changes in the Labor Force Manufacturing jobs are declining and service sector jobs with lower pay rates and fewer benefits are increasing. The pattern of pension income is changing from defined benefit plans to defined contribution plans or no pension as part of the fringe benefit package. A New View of Retirement Phased retirement may enhance the adjustment of the individual to retirement. Labor force shortages may force the employment of older workers and reverse the trend toward early retirement.