Job blues for gray-haired workers

http://money.cnn.com/2010/06/28/news/economy/older_workers_unemployment/index.htm?source=cnn_bin&hpt=Sbin

By Chris Isidore, senior writer
June 28, 2010: 4:16 AM ET

NEW YORK (CNNMoney.com) -- Companies are starting to hire again, but many are turning their backs on older job seekers.

Statistics from the Labor Department show the employment outlook is improving for most workers. The unemployment rate for those in the 25 to 54-year-old age group has fallen from a record high of 9.2% in October to 8.7% in May.

But the nationwide unemployment rate for older workers -- while lower than that of younger workers -- has barely moved since hitting a record high of 7.2% in December. It's currently 7.1%.

"All the gains we've seen from the peak last fall to now, they've gone to people less than 55 years old," said Heidi Shierholz, labor economist with the Economic Policy Institute.

Experts also said the unemployment rate for older workers may be artificially low. Older workers are more likely to become discouraged and stop looking, thus no longer being counted as unemployed in the government figures.

The divergence in job prospects for older and younger workers is new. In past recessions, the unemployment rate for the different age groups generally moved in tandem, said Shierholz.

But the problem for older job seekers could get even worse. That's because they are much more likely to be among the long-term unemployed, which will make it more difficult for them to eventually find a job.

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