Speeches by Secretary Elaine L. Chao

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Secretary of Labor Elaine L. Chao
AARP’s Best Companies Awards Dinner
Helmsley Park Lane Hotel
New York, New York
Tuesday, September 24, 2002

Thank you, Dawn.

What a pleasure it is to be here tonight with so many distinguished guests such as Bill Novelli, one of the pioneers in public service communications, and Jane Bryant Quinn. Through her Newsweek column she has probably done more to de-mystify pensions than any other journalist today!

We’re here tonight to recognize fifteen companies that are leaders in recognizing the value of older workers to the U.S. workforce.

These companies are “ahead of the curve” in developing policies that promote, encourage, recruit and retain older workers.

I can’t think of a more appropriate time to recognize them for their work than the last week in September, which is National Employ Older Americans Week. The theme of promoting employment opportunities for older Americans is as timely today—in fact, more so—than it was in 1958 when this designation was first made.

Today, our country faces profound demographic and workplace changes that make it imperative—and easier than ever before—to tap the skills and experience that older workers offer.

These changes:

• a skills gap in the workforce
• a high tech revolution in the workplace, and
• a vibrant generation of Baby boomers who are poised for retirement but many of whom prefer to keep working.

add up to a golden opportunity to turn a challenge—the approaching retirement of an unprecedented number of Americans—into a win-win scenario for our economy and our workforce.

Nowhere is the case stronger for tapping the strengths of older workers than with employers facing the skills gap. Everywhere I go, employers tell me they are having difficulty finding workers with the right skill sets for the jobs they have to offer.

That’s quite a change from the past.

Throughout most of our lifetimes, the chief economic challenge for the workforce has been unemployment. But despite the blows our economy suffered after September 11^th, 2001, that is no longer true. Nationally, unemployment is hovering around 5.7%. That is about the average unemployment rate in the 1990s.

It’s a tribute to the strength and resilience of our economy that we are on the road to recovery. We are still producing thousands of service, technology and health care jobs that go unfilled because workers lack the skills that are needed.

Just last week, I visited UCLA Medical Center in Los Angeles to learn firsthand from administrators and staff what statistics already reveal: there is a critical national shortage of nurses and health care workers.

The Bureau of Labor Statistics projects there will be more than one million job openings for registered nurses alone by 2010. Yet health care companies everywhere are having a difficult time finding workers qualified for these jobs today. That’s why the Labor Department is partnering with private companies to create scholarships and other opportunities to train health care workers.

I’m pleased to see that several of the companies you are honoring tonight recognize the need to retain older workers with critical health care skills. By 2010, 40% of today’s registered nurses will be 50 years or older. Their skills must not be allowed to retire with them.

Nursing is just one example of the disconnect between the new jobs that are being created and the current skill sets of many people in the workforce.

There are many others sectors where older workers can help to close the skills gap we are facing in the 21^st century workforce.

To hold onto their mature workers, however, employers must be willing to adapt to their special needs. Key options that attract older workers are flexibility and training opportunities.

Surveys show that many mature workers who want to stay in the workforce prefer flexible work arrangements.

Fortunately, we are living during a technological revolution that makes it easier than ever before to accommodate this preference.

The nine to five workday is giving way to flexible arrangements in which workers can take the office with them. They can work anywhere, at anytime, at their own pace.

This new freedom requires more than just skill in manipulating digital devices. It requires a certain self-discipline and maturity to work to its fullest advantage. What better place to look for these qualities than in the older, seasoned workforce.

Some companies mistakenly believe that technology presents a challenge to mature workers. They haven’t read the latest studies.

The May 2002 publication of Professional Safety magazine reported that chronological age is a poor predictor of a worker’s physical and mental ability.

Mature workers scored high on job skills, loyalty, and reliability. They had lower absenteeism and job turnover. They demonstrated the capacity to change and adjust on the job. They were also more safety conscious and experienced fewer job injuries than their younger counterparts.

And the Conference Board just recently completed a comprehensive study of mature workers that explodes many of the myths surrounding training. Training mature workers turns out to be a good investment. Companies that invest in training older workers will find that tenure increases with age. Learning new skills makes mature workers less likely to leave an organization.

The idea that mature workers are difficult to train is also a misconception. baby boomers—the generation of Americans born between 1948 and 1964—have a higher level of education than the general workforce. Nearly 60% of baby boomers have a bachelor’s degree or more, making them excellent prospects for advanced training. They fit perfectly into an economy in which professional and service related sectors comprise the largest occupational groups.

Let me finish by pointing out that we are fast approaching the milestones that will mark a profound transition for our workforce and our economy.

Last year, the first members of the baby boomer generation turned 55.

By 2011, the baby boomer generation will begin to turn 65.

By 2030, some projections show that as many as one in five Americans will be 65 or older.

It’s not too early to issue a wake-up call about the need to prepare for this major demographic change.

We must work together to ensure that older workers who want to continue working have the opportunity to do so.

And we must also ensure that the public understands clearly that older workers represent a win-win scenario for everyone. By giving them the option to remain in the workforce, older workers add value not only to employers’ bottom line, but to the long-term health of our workforce and our economy.

I salute all of the companies honored tonight for their leadership in promoting opportunities for older workers. And I look forward to working with you and the AARP on other initiatives that call attention to this national treasure trove of experience and talent.

Thank you.

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