HUMAN CAPITAL Career Trends

Aging Emerging Challenges

The labor shortage is a reality; we need to attract and retain healthcare providers to face these projections.

The rapid U.S. Aging Population presents an unprecedented set of challenges: labor-force shortages.

The aging of America is leading into an unprecedented era.

For most of its history, America was a demographically youthful society. As recently as 1950, there was more college-age youth aged 18 to 21 than elderly aged 65 and over. But lower fertility and increased longevity have led to the rapid growth of the older population worldwide and in the United States.

Geographic Distribution

The proportion of older persons in the population varied considerably by state, with some states experiencing much greater growth in their older populations.

U.S. Census Bureau, the National Center for Health Statistics, and the Bureau of Labor Statistics.

In 2019, 51% of persons age 65 and older lived in nine states:

California (5.8 million) Florida (4.5 million) Texas (3.7 million) New York (3.3 million) Pennsylvania (2.4 million) Ohio (2 million) Michigan (1.8 million) North Carolina (1.8 million)

As the population of Northern America continues to age projections show that by 2050, 21.4 percent of the total population will be 65 and older.

An aging scenario is coming. As America ages, the country needs to prepare for a severe worker shortage.

The next 10 years in global employment will bring dramatic technological change, expanding health care needs, unforeseeable energy demands, and other developments.

Number of Persons Age 65 and Older, 1900 - 2060

(number in millions)

Note: Increments in years are uneven. Lighter bars (2040 and 2060) indicate projections. Source: U.S. Census Bureau, Population Estimates and Projections.

Source: UN Population Division (2019)

We need to plan and prepare for our own future, as society ages. Health care workers will be more demanded.

People are living longer and, in some parts of the world, healthier lives. This represents one of the crowning achievements of the last century but also a significant challenge. Longer lives must be planned for. Societal aging may affect economic growth and many other issues, including the sustainability of families, the ability of states and communities to provide resources for older citizens, and international relations.

The Global Burden of Disease, a study conducted by the World Health Organization and the World Bank, with partial support from the U.S. National Institute on Aging, signed by Paula J. Dobriansky, Ph.D. Under Secretary for Democracy and Global Affairs Department of State, Richard M. Suzman, Ph.D. Director, Behavioral and Social Research Program National Institute on Aging National Institutes of Health Richard J. Hodes, M.D. Director National Institute on Aging National Institutes of Health, predicts a very large increase in disability caused by increases in age-related chronic disease in all regions of the world.

In a few decades, the loss of health and life worldwide will be greater from non-communicable or chronic diseases (e.g., cardiovascular disease, dementia and Alzheimer’s disease, cancer, arthritis, and diabetes) than from infectious diseases, childhood diseases, and accidents.

There is a need to raise awareness about not only global aging issues to address the challenges and opportunities of an aging world. Preparing financially for longer lives and finding ways to reduce aging-related disability should become national and global priorities.

European Commission and the Economic Policy Committee submitted a report to European Finance Ministers with new economic and budgetary costs projections for European Union (EU) member states.

While Europe currently has four working-age people for every older citizen, it will have only two workers per more senior citizen by 2050 due to the baby boom generation retiring and life expectancy increasing.

Given current policies, the pension, health, and long-term care costs associated with an aging population will significantly improve public spending in most member states over the next half-century. Gross domestic product growth rates are projected to fall across the EU, and in the absence of policy changes, the potential EU economic growth rate will be cut in half by 2030.

Ana Paula Montanha

Editor-in-Chief

Mrs. Montanha is a seasoned executive and entrepreneur with global human resources experience in recruitment. Mrs. Montanha’s industry and consulting experience enable her to assist companies seeking to drive significant change, ranging from turnarounds to high growth. She served as a strategy, finance, and executive for distinguished companies such as Shell, Vésper, Pamcary, Tandberg, DHR International, and Jobplex Inc. In early 2020 she Co-Founded HAYMAN-WOODWARD Human Capital Services, where she serves as Managing Partner. Mrs. Montanha holds a master’s in business administration from Stephen M. Ross School of Business, the business school of the University of Michigan, a graduate degree in marketing from Fundação Getúlio Vargas, and a bachelor’s in economics from Universidade Federal do Rio de Janeiro.