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Retirement used to create opportunity. Now it just delays it.

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When older workers stay longer, the ladder doesn’t grow. It clogs.

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The economy didn’t plan for a generation that never exits the workforce.

BRIEFING

Grant here. The American workforce has a lot working against it... H1-B imports, AI overload, and Boomers. Yep, Boomers are still hanging tight in the workforce, and quite frankly, it's leaving other generations out in the cold. Let’s break it down.

For most of modern economic history, retirement served as sort of a "recycling system." Older workers exited, younger workers moved up, and the system refreshed itself. That turnover was embedded in both our culture and structure.

But then for some reason, the system broke.

More and more Boomers are staying in the workforce longer, returning after retirement, or just never leaving at all. Some do it because they want to, while others do it simply because they have no other choice. But regardless of motive, the effect is the same: fewer exits mean fewer openings, and fewer openings mean the ladder stops moving.

SOURCE

Workers age 65 or older are putting off or returning from retirement and remaining in their job roles longer, reducing opportunities for younger workers to fill open roles.

The trend has driven up the average age of the U.S. labor force from 40.5 years in 2022 to over 42 years at the end of 2025, according to a study published earlier this month from workforce data firm Revelio Labs.

“The average age of workers starting new positions has risen sharply since 2022 as older workers re-enter or remain in the labor market and younger workers face fewer entry opportunities,” the study said. “This pattern is consistent with a labor market that is slowing, becoming more selective, and prioritizing experience over long-term potential.”

“When growth slows, hiring does not disappear; it becomes more conservative,” Revelio said. “Experience, immediate productivity, and role readiness suddenly begin to matter more, making older workers comparatively attractive.”

Then what's just as strange is the specific jobs where average ages were highest. They're mainly service related jobs that don't require a high level of adaptability when it comes to technology, such as clerical, insurance, and real estate positions.

Service-related jobs and several other occupations saw the biggest rise in average age from 2015 to 2025, according to Revelio:

  • Service operations: 2.57 years
  • Insurance claims adjuster: 2.48 years
  • Sales representative: 2.4 years
  • Real estate agent: 2.38 years
  • Commerce brand manager: 2.3 years.

Another layer of this problem is that staying in the workforce longer hasn’t actually protected older workers either.

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As career coach Brian from A Life After Layoff explains, many Baby Boomers now find themselves at the top of salary bands just as companies are cutting costs. When layoffs hit, they’re often the first to go. And once they’re pushed back into the job market late in their careers, rehiring becomes difficult due to age bias, outdated skill sets, and compensation expectations that no longer match market reality.

So, ironically, they're also left out in the cold...

DEBRIEFING

What makes this entire situation unfortunate all the way around is that it isn’t actually benefiting anyone.

Boomers staying in the workforce longer didn’t create stability, instead, it created congestion. Roles stopped turning over, promotions slowed, and younger workers found themselves stuck waiting for opportunities that never came.

Then you flip the other side of the coin and see that Boomers who stay longer are often the first to get the boot. Then they’re forced back into the job market late in their careers, where their skills are seen as outdated and compensation isn't sufficient.

So you end up with a workforce frozen at both ends.

NOW YOU KNOW

A workforce that never turns over eventually traps everyone inside it.