AI's Impact on Older Workers: A Shift in the Job Market

A recent study from the Center for Retirement Research has shed light on the evolving job market for older employees since the introduction of ChatGPT, revealing some concerning trends.

Historically, discussions around the effects of AI on employment have predominantly focused on Generation Z, with various studies indicating that entry-level jobs are particularly vulnerable to automation. In Germany, the unemployment rate among recent graduates under 30 is at its highest in decades. However, the analysis from Boston College suggests that another demographic—workers nearing retirement—may also be significantly affected by these changes.

Office Jobs at Greater Risk

Geoffrey Sanzenbacher, an economics professor at Boston College, analyzed U.S. employment data in conjunction with an AI exposure index, which measures how susceptible certain professions are to automation. His research specifically looked at the employment patterns of individuals aged 55 and older before and after the launch of ChatGPT in 2022.

While Sanzenbacher acknowledges that the full impact of AI on workers is still not completely understood, his findings indicate a notable shift. Prior to the release of ChatGPT, older employees in high AI-exposure jobs tended to remain in the workforce longer than those in manual positions. This included highly skilled professions such as programming and accounting. "The occupations affected by AI previously had a relative advantage in terms of career longevity," Sanzenbacher explains. However, this advantage has diminished significantly since the introduction of the AI technology.

Many Workers Want to Stay Employed

Sanzenbacher points out that the percentage of workers over 55 leaving their jobs has increased markedly in recent years. Many of these individuals are being pushed out of their positions due to current market trends rather than choosing early retirement. Additionally, a significant number of these seasoned professionals are actively seeking new employment opportunities. Office jobs, once considered stable and well-compensated, are particularly affected. Between 2014 and 2025, the number of workers leaving manual jobs rose by only about two percent, while the figures for accountants and computer programmers were significantly higher—22 percent and 25 percent, respectively.

Compounding the issue, many older Americans remain reliant on their jobs. An increasing number of retirees are returning to the workforce, often due to financial pressures. According to a survey by Resume Builder involving over 3,500 seniors, 54 percent indicated that they either want to return to work or need to continue working because of rising living costs. Sanzenbacher notes that even a significant health issue could force seniors back into the workforce, especially those who may have had lower earnings throughout their careers and thus accumulated less savings. This current trend could place even more strain on older employees, making their situation increasingly precarious.