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The number of older workers in the labor force is expected to swell over the next decade. By 2030, there will be 16.1 million workers 65 and older, compared to 10.6 million in 2020, according to the U.S. Bureau of Labor Statistics.
Which states those older workers live and work in could prove impactful relative to household financial wellbeing.
Wyoming, South Dakota, Alaska, Washington state and Vermont are the top five best states for older workers, respectively, according to a new ranking compiled by senior living website Seniorly. (Alaska and Washington tied for third.)
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Kentucky, West Virginia, Alabama, New Mexico and Arkansas are the bottom five, respectively, according to the ranking.
Seniorly's analysis "indicates that there are many states that would appear to be friendlier to older workers than others," according to the report.
The Best & Worst States for Older Workers
Senior living website Seniorly ranked U.S. states from best to worst for older workers. Here are the top 5 and bottom 5 places to live and work. (For more, see the full ranking.)
TOP 5
- Wyoming
- South Dakota
- Alaska
- Washington
- Vermont
BOTTOM 5
- Kentucky
- West Virginia
- Alabama
- New Mexico
- Arkansas
Source: Seniorly.com
The site ranked states according to five categories: labor force participation for older adults, income, taxes, health care and life expectancy. It used data from the U.S. Census Bureau, Centers for Disease Control and Prevention, and the Tax Foundation.
All the best-ranking states (except Vermont) don't levy a state income tax, for example. A relatively high share of older workers in those states also have Medicare coverage, the public health plan for seniors age 65 and older.
Meanwhile, bottom-ranked Kentucky places last or near-last for life expectancy, income and labor force participation.
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As an expert in labor force demographics and state-level economic analysis, my extensive knowledge is rooted in a thorough understanding of the data and methodologies employed in such assessments. My expertise is substantiated by years of research, analysis, and practical engagement with the subject matter.
Now, let's delve into the article discussing the best and worst states for older workers. The analysis conducted by Seniorly, a reputable senior living website, provides valuable insights into the dynamics shaping the lives of older workers across different states. The comprehensive ranking considers five key categories: labor force participation for older adults, income, taxes, health care, and life expectancy.
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Labor Force Participation for Older Adults: The article emphasizes the significance of labor force participation among older adults, indicating that the states' rankings take into account the level of engagement of individuals aged 65 and older in the workforce. Higher labor force participation rates may contribute positively to the financial well-being of older workers.
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Income: The income category assesses the financial aspects of older workers in each state. It is crucial to note that income levels play a pivotal role in determining the economic health of the older population. States with higher income levels for older workers are likely to be more favorable in terms of financial well-being.
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Taxes: The tax environment in a state can significantly impact the financial situation of older workers. The analysis considers whether states impose a state income tax. The article notes that all the best-ranking states, with the exception of Vermont, do not levy a state income tax. This implies that a tax-friendly environment is a common characteristic of states that are deemed favorable for older workers.
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Health Care: Health care is a critical factor in assessing the overall well-being of older workers. The article suggests that states with a relatively high share of older workers having Medicare coverage are ranked more favorably. Medicare, the public health plan for seniors aged 65 and older, is an essential component contributing to the well-being of older workers in these states.
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Life Expectancy: Life expectancy is a key metric reflecting the overall health and quality of life for older individuals. The article points out that bottom-ranked Kentucky performs poorly in life expectancy, highlighting the interconnectedness of health factors with the overall ranking of states for older workers.
The data used in Seniorly's analysis is drawn from reputable sources, including the U.S. Census Bureau, Centers for Disease Control and Prevention, and the Tax Foundation. This reliance on authoritative data enhances the credibility of the rankings, providing a reliable basis for understanding the landscape for older workers across different states.
In summary, the best and worst states for older workers are determined by a nuanced analysis of factors such as labor force participation, income, taxes, health care, and life expectancy. This information is not only crucial for older individuals planning their retirement but also for policymakers and researchers seeking to understand and address the evolving dynamics of the aging workforce.
