On paper, it looks like in at this time’s financial system, there are many jobs to go round. The unemployment charge in July was 4.2%, per the Bureau of Labor Statistics, and it has been pretty constant, hovering within the 4% to 4.2% vary since Might of 2024.
That doesn’t imply the job market is robust, although. As CNN reported in July, the variety of recurring unemployment claims rose to its highest stage since November 2021. Put one other approach, it hasn’t been this tough to discover a job in virtually 4 years.
However whereas the labor market could appear uninviting to job seekers on the entire, it may be particularly tough for employees 50 and older to seek out work after a layoff. A January 2025 AARP survey of Individuals 50 and over finds that 74% suppose their age could possibly be a barrier to getting a job supply.
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When you received laid off at 52 with $620,000 in financial savings, you could be in a tricky place if the one job alternatives you’re discovering now are lower-paying roles. Whereas a $620,000 nest egg isn’t chump change — it’s greater than 5 instances the median $115,000 retirement financial savings steadiness amongst 45- to 54-year-olds as reported by the Federal Reserve. Furthermore, it additionally is probably not a sum you’re snug retiring on. And so taking a lower-paying job couldn’t solely be demoralizing, but in addition influence your long-term monetary plans.
That stated, a state of affairs like that is removed from hopeless. Chances are you’ll have to be somewhat versatile and open-minded to return out of it unscathed.
Do not write off the thought of being rehired
When you’re struggling to discover a position that’s corresponding to your most up-to-date one in at this time’s job market, it is probably not a matter of age discrimination a lot as an absence of obtainable alternatives. Nevertheless, Dr. Kyle Elliott, a tech profession coach and psychological well being knowledgeable, does acknowledge that being over 50 could result in some challenges.
“In truth, these of their early 50s are going to have a bit extra of a tough time navigating the job search. Age discrimination is each actual and rampant,” he says.
Nevertheless, Elliott says, that doesn’t imply it’s going to be unattainable to land a job. It simply means you could must method your search extra strategically.
“When you’re fearful about age discrimination, use LinkedIn to analysis present workers in comparable roles on the firm. You will get a way of the corporate, tradition, and vibe,” he says.
“When you discover that the complete group is of their early 20s, it could be an indication that they have an inclination to solely rent individuals who appear like them. If it is a extra various group, you seemingly stand a greater likelihood of touchdown a task.”
Elliott additionally says that many firms do, actually, search out skilled professionals.
“Because the applicant, it is your job to point out you’re simply as agile and hardworking as anybody youthful. You are able to do this by pursuing programs and taking over particular tasks. Then, characteristic these achievements in your resume and LinkedIn profile and point out them confidently in your interview.”
Think about a low-paying job briefly
In case your makes an attempt to discover a job you’re pleased with aren’t fruitful and also you’re reaching the purpose the place you threat dipping into your financial savings, it might be time to pivot and method your job search otherwise, says Elliott.
“Accepting a briefly lower-paying job isn’t a profession dying sentence,” he says. “Whereas simpler stated than finished, strive to not be too onerous on your self when you take a task that pays much less. On the finish of the day, you have to look out for your self, and that features assembly your monetary wants.”
When you resolve to take a lower-paying job, Elliott says, then you could wish to pause your job search briefly to get settled and provides your self a little bit of a reset. However there could possibly be a profit to taking a lower-paying job for a time frame.
“If the position is not too intense, it would even mean you can seek for what’s subsequent whereas additionally taking house a paycheck and persevering with to contribute to your retirement,” Elliott says.
Attempt to keep away from tapping your financial savings
When you’re 52 years outdated, you is probably not trying to retire for an additional decade or longer. Even when you’re pressured right into a lower-paying position on a long-term foundation that makes it tough so as to add to your retirement financial savings, a $620,000 nest egg invested at an annual 7% return, which is a couple of notches beneath the inventory market’s common, might double over a 10-year interval.
The important thing, due to this fact, is to attempt to keep away from dipping into your present retirement financial savings. And doing that will require some adjustments in your half.
It might, for instance, imply having to chop spending or downsize to a smaller house ahead of you’d prefer to. It might additionally imply supplementing your wages with gig work. Nevertheless it’s essential to do your greatest to protect your nest egg in order that it may proceed producing progress. Making sacrifices through the tail finish of your profession might open the door to extra flexibility as soon as retirement arrives.
