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SUBJECTS › GOVERNANCE › Demographic Change and Local Government: Workforce Issues
Updated 10/09

Demographic Change and Local Government: Workforce Issues

Contents

About Predicted Changes in the Workforce

The demographic make up of the American population is undergoing a profound change.   For the first time in  history, there will be four generations in the work force.   In the next 20 years women and minorities will make up over two-thirds of the workforce.   Currently in the public sector, the baby boom generation makes up  the largest segment of the workforce.  In the next decade  the boomers will be retiring.  Some analysts believe that will create possible skilled labor shortages.   Some of the predictions made about changes in the work force are:

  • The workforce will be more culturally diverse as the population of the ethnic groups increase
  • More women  will be represented in the workforce
  • Some believe that by 2010 average worker retirement age will be delayed well into their 70's
  • By 2011 the first of the 77 million boomers will reach age 65
  • The median age of the  labor force is rising, even though the youth labor force  is expected to grow more rapidly than the overall labor  force
  • Older workers may be rehired to meet shortages of labor and expertise
  • Generational conflict may occur  with age diversification of the labor force  
  • Employers will need to find new ways to motivate the new work generation and  provide opportunities for training to improve skills and knowledge base  
  • The new workforce will want a more flexible workplace and may prefer flexibility over higher salary
  • Some analysts feel there will be an erosion of  old work ethics.  
  • The new generation of workers must be nurtured, paid well, and made to feel appreciated.
  • Stress related problems affecting employees morale and wellness will continue to grow.  
  • Companies must help employees balance their time at work with their family lives and need for leisure.
  • Upper management will no longer give detailed orders to subordinates.  Instead, it will set performance expectations for the organization, its parts and its specialists and supply the feedback necessary to determine whether results have met expectations.

Multigenerational - Multicultural  Workforce

As members of the next age groups, often labeled Generation X and Y,  move into the workforce,  the work culture  is expected to change significantly. The new workforce will be multigenerational and culturally diverse.  Workforce consultants recommend  that employers start assessing  the impact of demographic change now and plan for the new workforce.  Issues such as methods of attracting and retaining  employees, training, and  benefit administration need to be addressed.    Demographic changes  may force employers  to adjust virtually all of their policies and practices to the values of the new generations.

Retirement of Baby Boom Generation

Currently in the public sector, the baby boom generation makes up  the largest segment of the workforce.  In the next decade  the boomers will be retiring.  Some analysts believe that will create possible skilled labor shortages.    A component of demographic change is  the expected retirement of the baby boom generation which some feel will bring about a skilled labor shortage, particularly  in areas such as administration and management. 

 Possible Public Sector Labor Shortage

Public Sector Personnel Recruitment and Management

Workforce Development and Job Training

Further  Reading