​​The Future of Work: Adapting to Technological Change and Its Impact on Older Workers​​​

*​​​This article was sponsored by AARP. All views, language, and endorsements expressed in this are solely those of ​Felicia Brown, Senior Advisor,​ Financial Resilience, AARP and do not necessarily reflect the views or endorsements of the Financial Health Network.​ ​ 

Over the next decade, the workplace will look very different than it does today. Technology, automation, innovation, and new systems will change the way we work and do business. These advancements will help make us more efficient, accelerate processes, improve communication, and increase productivity. While automation may help us do things better and faster these advancements could raise concerns, particularly among older workers who simply want to work, communicate and simply take care of themselves.  So, adapting to new technologies will be important for surviving and thriving in the workforce.    

According to the Bureau of Labor Statistics, the percentage of adults aged 65 and over in the labor force will reach 16.5​%​​​ by 2030, compared to 7​%​​​ today. Therefore, as technology evolves rapidly, it is essential that workers and employers prepare. Upskilling and reskilling will become increasingly important. ​Many jobs that existed 10 or 20 years ago have gone away, and many that we hold today will disappear as well over the course of the next decade. ​​Due to advancements in technology, the demand for jobs such as cashiers and factory and warehouse workers could be significantly reduced.  

According to the McKinsey report, AI is expected to replace 2.4 million US jobs by 2030, and an expected 400 to 800 million people will lose their jobs due to artificial intelligence. This ​underscores how the introduction of automation and technology will impact our future work. ​​As technology evolves, as outlined in AARP’s Megatrend Advances in Technology, there can be a significant impact on workers, particularly older workers, which could result in job loss, longer stints of unemployment, and difficulty in finding work. Therefore, it’s imperative that all workers, particularly older workers, continue to learn and adapt to keep up.   

Time to Reskill (or Upskill)! 

The need to upskill or reskill in current or new roles will be necessary to stay relevant. There is a misconception that older adults are not interested or cannot grasp new skills, when in fact studies show that they are interested in continuous learning, particularly when it comes to new skills that help them improve in their jobs. AARP’s study on job reskilling and upskilling among those 50+ indicates they are eager to learn new skills and expand their skill​ ​set, particularly in computers and technology.  This can help with job enhancement and job security. Much of this can be attributed to the fact that older adults are finding themselves working longer or returning to the workforce post-retirement.  

Employers can support older workers by creating programs that help these workers reskill and upskill to navigate and remain competitive in the workforce. Older workers are reliable, adaptable, and open to deepening their knowledge of unfamiliar topics – attributes and qualities that technology cannot replace.   

​​​AI’s Impact on Older Workers 

​​AI​ is significantly altering the job landscape. While AI presents opportunities for enhanced productivity, it is seen as both a threat and an opportunity.   

AARP’s recent study, “How AI is Impacting the Future of Work Among Adults Age 50-Plus​​​,​”​ found that many older workers’ concerns and fears are related to workplace disruption, replacement (61%) and displacement (57%) of workers, particularly as few ​(7%) ​have​ taken training or education classes on using AI in their line of work. While there is growing fear among older workers, younger workers are equally apprehensive about the impact of AI on their jobs. According to ​the ​American Psychological Association’s recent study, the impact of AI is a common concern across other age groups,​ not just when it comes to job security​,​ but also in regard to the hiring process​,​ where AI and algorithms are increasingly being used. These can make it harder for candidates, including older workers, to connect with hiring managers and may introduce biases.   

There is wide understanding that there is so much more to learn about AI​.​​ Older workers​ in particular​ understand that the use of automation is an opportunity to enhance productivity in the workplace (36%), as well as to speed up decision making processes (30%) and to make work easier (30%).

The New Onus on Employers 

As AI and automation gradually become our new normal, employers will need to rethink how to balance technological needs with human needs like critical thinking, negotiation, collaboration, ​and ​customer service​ – ​skills that automation cannot replace. According to the Urban Institute digital skills among older adults may be lower, so it’s beneficial to consider skills programs that can improve economic outcomes for both employers and employees.  

Considering the trajectory of the labor force and the importance of blending human skills with technology, employers should consider the development of policies and practices that support workers in adapting to these changes. As work becomes less physically demanding and more mentally challenging, finding effective ways to support and retain workers will be key to future success. 

To learn more about older workers and the adaptation to technology, check out:  

• ​​How AI is Impacting the Future of Work Among Adults Age 50-Plus​
• Should Older Worker​s​ Worry About AI​?​​ 
• ​​​Do You Work at a Job That AI Might Snatch Away?​​ ​ 
• ​​Digital Skills and Older Workers​ 
• Supporting Digital Skills Development and Access for Older Workers 
• A Nonprofit’s Toolkit for Exploring Age-Inclusive Fintech Partnerships 
• Designing Digital Financial Advisory Tools for Low-to-Moderate Income Older Adults 
• Fintech Over 50: Designing for Low- to Moderate-Income Older Adults​ 

​​AARP’s Policy, Research, and International Affairs unit powers insights and analyses that put longevity squarely in conversation with other powerful social phenomena defining our lives today.