Federal Personnel

A major demographic swing is under way in the government workforce. The "baby boomers" are approaching retirement eligibility, and a much smaller pool of workers is expected to follow. The federal government may have a hard time hiring the people it needs if, as expected, older workers start leaving the government in unprecedented numbers. Like most other employers, the federal government has not developed a strategy to deal with the effects of its aging workforce. Yet older-worker programs could hold great promise: many older federal workers have indicated that they might extend their careers if appropriate incentives were available. Not all older persons are willing, able, or qualified to remain in the workforce, however, and younger people will continue to need employment and advancement opportunities. Thus, care must be exercised in determining whether federal employment policies should be revised to make more effective use of older workers.

GAO found that: (1) the federal government and private-sector employers could face difficulties in meeting their future employment needs because the large aging baby boom generation is approaching retirement eligibility and the next generation of workers is considerably smaller; (2) the federal government has not developed a sufficient strategy to address its aging workforce; (3) although employers do not value older workers as much as younger workers, older workers often can be as productive, have better work attitudes, and are more reliable than younger workers; (4) although few private sector employers have initiated older-worker programs, several employers have successfully employed older workers; (5) older worker employment programs vary in industrialized countries; (6) Canada and Japan have enacted legislation and initiated programs to encourage employers to retain older workers; (7) the full effects of downsizing on older workers are not known, but many private sector employers offer early retirement incentives; (8) the federal government could meet its future employment needs by making greater use of qualified older workers; and (9) the federal government needs to balance the desires of older employees who wish to remain employed with the employment, mobility, and advancement of younger workers.