1 Issue Brief 13 Figure 1: Labor Force Participation Rate of Persons Age 55 and Over 1980 1985 1990 1995 2000 2005 2007 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% Men Women Introduction During the last half of the 20th century, the labor force participation rates of people aged 55 and older dropped. However, beginning in the mid 1990s, there was a “turning of the tide,” and these rates started to rise, particularly among women (see Figure 1). 1 Several factors have contributed to the new trends in later retirement. The increase in the labor force participation of older workers reflects both societal Quality of Employment and Life Satisfaction: A Relationship that Matters for Older Workers by Jessica K. M. Johnson, Marcie Pitt-Catsouphes, Elyssa Besen, Michael Smyer, and Christina Matz-Costa Issue Brief 13 February, 2008 shifts as well as changes in the lives of older workers. Economic conditions, occupation-specific labor force shortages, and new attitudes about aging and work have affected older workers’ decisions about continued labor force participation. There have also been changes in the experience of older workers themselves that affect their decisions about work and retirement. The improved health status of older adults has increased life expectancy of both men and women. 3 As a result, a greater percentage of older workers are physically able to continue to work. The assessments that older workers make about the adequacy of their financial resources affects their decisions as well. In fact, a minority of Baby Boomers (approximately one-quarter) report that they are very confident that they will have enough money to live comfortably in retirement. 4 In summary, older people are increasingly finding that they either want to work and/or they have work. 5 Recent studies suggest that employment—particularly having a job that is a quality job and one that fits with the employees’ priorities and preferences—contributes to the quality of life and life satisfaction of older workers. 6 Life satisfaction has also been linked to employee’s work behaviors, including job performance; therefore, life satisfaction is a topic of interest for organizations striving to be employers-of-choice. This Issue Brief offers insights about how employment experiences affect the life satisfaction of older workers. We explore the following questions: Why does employee well-being and ρ life satisfaction matter to employers? What factors affect life satisfaction? ρ Is there a connection between working ρ and life satisfaction? What factors explain variation in the ρ life satisfaction of older workers? Source: Bureau of Labor Statistics (2007) 2