You know when the layoff is coming. You can feel the email slowdown, sense a slight change in attitude from your manager, see projects flow to other people. Then, one day, you get called into a meeting that wasn’t on your calendar. It’s time.
This happened to me in late 2023, just shy of my 54th birthday. I expected to be out of work for a few months and then get back on track. But this time something felt different, and it wasn’t just me. Across LinkedIn, people my age and in similar careers seemed to be facing the same challenge– the green “Open to Work” badge encircled more headshots each day, accompanied by posts touting their experience and showing performative enthusiasm for the next stage. Though the latest job numbers from ADP show some overall growth, they also point to a lot of weakness in the professional and business services category,[1] suggesting that we will continue to see more people like me out of work.
Today, thirty-five percent of long-term discouraged workers—those who are unemployed for more than 24 weeks—are over the age of 55.[2] Worse, twenty-four percent of people over 50 who are laid off never find another job.[3] Older workers are now more likely to face long-term unemployment for the first time since the 1970s.[4] A 2023 study by the Schwartz Center for Economic Analysis found that job recovery has been much slower for workers 55 and over, compared to workers aged 25 to 54.[5] This is a reversal of the trend of every past recession and recovery cycle, in which laid-off older workers returned to work faster than younger workers.
I’m among the lucky who found an offramp, but so many others increasingly face long-term unemployment.[6] This not only leaves them without income in what were supposed to be their final years of working, when salaries tend to peak,[7] but also leaves them without health insurance at a critical time in their lives. If nothing is done, the US could be facing a future of increased poverty among adults as they are about to enter retirement age.[8]
We also need to worry about the mental health challenges that come with unemployment, especially among this group. One study found that unemployment at age 50 has the worst impacts on happiness and satisfaction.[9] For his book ”The Stigma Trap”, Ofer Sharone, a sociology professor at the University of Massachusetts Amherst, interviewed college-educated, long-term unemployed individuals and found that they experienced feelings of isolation and reduced self-worth.[10] He also discovered that their support network often disappeared, thanks to frustrated spouses, distant friends, and a disturbing lack of empathy from employed peers. These stand in addition to recruiter ageism,[11] which has become an accepted part of the employment landscape. Helping older workers get back on their feet is not only about income; it is also about restoring their purpose and self-esteem.
Increased long-term unemployment amongst older workers has potentially dire consequences, but it also presents an opportunity for business leaders to leverage the immense amount of talent sitting on the sidelines.[12] Fully addressing this issue requires dedicated policy solutions, some of which are outlined below.
Better disaggregated and targeted data: We need to track long-term unemployment to get a better disaggregated picture of the labor market. Today, most reported unemployment figures focus on just those recently unemployed, ignoring people who are partially employed or who have dropped out of the job search entirely. We need better accounting of who is suffering and for how long.
Increase the length of Unemployment Insurance (UI): With increases in long-term unemployment, the 24 weeks of unemployment insurance most Americans are currently eligible for is increasingly insufficient. Raising this threshold to a year– the length of the typical job search in recent years– would provide more adequate support to the unemployed and could help ensure that they stay in the labor market.
Secured health benefits for the older unemployed workers: We must break the bond between healthcare and employment to provide older workers with additional flexibility in finding work. One solution could be lowering the Medicare age threshold from 65 to 50. However, expansions in Medicare when Congress is cutting similar programs seem very unlikely. Alternatively, instead of changing the age threshold, we could make Medicare available to those who have exhausted unemployment benefits and have fallen off their former employers’ healthcare. That would free this group to participate elsewhere in the economy through freelance or gig work, providing them much-needed income even as they continue to look for full-time employment.
Create incentives for hiring older workers: We could also create employer incentives for hiring older workers, including tax credits or partial wage subsidies to those hiring people over 50 who have been out of work for more than 26 weeks. Retention requirements could ensure that employers don’t cycle through older workers rapidly just to receive the credit or subsidy.
Watch for uneven solutions: Often, people turn to gig work to fill in income gaps, but while these solutions are helpful, they are not a panacea. What often starts as a temporary way to remain financially afloat can turn long-term. But it’s not immune to the same age-related biases. A Stanford study found that Uber drivers over 60 earn almost 10% less than those half their age.[13]
As I peruse my LinkedIn feed, I find that even success stories are tempered. One person who launched his own communications agency to great online fanfare admitted that after a year of positive spin, he still hasn’t reached his previous salary. I enrolled in a graduate program in an effort to enhance my skillset and become a stronger candidate in the future. But I’m among the lucky ones, with a support network that could help make this happen.
For the rest, we need to build a social safety net so falling off the career ladder doesn’t mean disappearing into the abyss.
[1] ADP Research, “ADP National Employment Report,” October 2025, https://adpemploymentreport.com/
[2] The New School Schwartz Center for Policy Analysis, “Hidden and Persistent Unemployment Among Older Workers,” December 2023, https://www.economicpolicyresearch.org/research/hidden-and-persistent-unemployment-among-older-workers.
[3] Anne Tergesen et al., “Here’s What a Late-Career Layoff Looks Like in America, in 5 Charts,” Markets, Wall Street Journal, July 20, 2025, https://www.wsj.com/personal-finance/retirement/heres-what-a-late-career-layoff-looks-like-in-america-in-5-charts-63f5c809.
[4] Ibid.
[5]“Hidden and Persistent Unemployment Among Older Workers,” ECONOMIC POLICY RESEARCH, accessed December 7, 2025, https://www.economicpolicyresearch.org/research/hidden-and-persistent-unemployment-among-older-workers.
[6] Rix, Sara E., and AARP Public Policy Institute. “Long-Term Unemployment: Risks for Older Workers – AARP Public Policy Institute.” AARP, February 25, 2015. https://www.aarp.org/pri/topics/work-finances-retirement/employers-workforce/long-term-unemployment-older-workers/.
[7] ADP Research, Romem,Issi, “The Wage Lifecycle Is More Complex than You Think,” July 24, 2025, https://www.adpresearch.com/the-wage-lifecycle-is-more-complex-than-you-think/.
[8] Thornton, M., Bowers, K., (January 31, 2024) “Poverty in Older Adulthood: A Health and Social Crisis” OJIN: The Online Journal of Issues in Nursing Vol. 29, No. 1, Manuscript 3.
[9] Travers, Mark, “Research Finds Age 50 Is The Worst Time To Be Unemployed”, Forbes, March 25, 2020, https://www.forbes.com/sites/traversmark/2020/03/25/research-finds-age-50-is-the-worst-time-to-be-unemployed/#3af0f30173bb
[10] Eisenberg, Richard “Over 50 and out of Work,” Marketwatch, March 16, 2024, https://www.marketwatch.com/story/over-50-and-out-of-work-abandoned-by-recruiters-spouses-and-friends-346b60b4.
[11] Lucija Batinovic, Marlon Howe, Samantha Sinclair, Rickard Carlsson; Ageism in Hiring: A Systematic Review and Meta-analysis of Age Discrimination. Collabra: Psychology 3 January 2023; 9 (1): 82194. doi: https://doi.org/10.1525/collabra.82194
[12] The Future of Work 2025 | Value Of Older Workers Is Underestimated | Paul Irving | WorkingNation.
[13] Cook, Cody, Rebecca Diamond, and Paul Oyer. 2019. “Older Workers and the Gig Economy.” AEA Papers and Proceedings 109: 372–76.