Michael Gallerani, Brockton 21st Century Corp.

The “Silver Tsunami” is a controversial term used to define the phenomenon of the aging American workforce (Baby Boomers) and how the median age has, not since the Social Security Act of 1935, reached an the unprecedented level of today.

According to the U.S. Department of Labor, the Baby Boom generation (born post WWII /1946-1964) will completely be in the age fifty-five population sector by 2020. The so-called older population in America will make up more than twenty-eight percent of the total population.

What does that mean for economic development?

The most obvious is the impact on the workforce. Just under 17% of  older Americans are continuing to work beyond the typical retirement age (62-65), while many look forward to their retirement years with hopes for health and active lifestyles never experienced before.

The loss of skills and institutional knowledge will dramatically affect businesses that have failed to prepare for the newly created gaps with training programs and recruitment of young workers. For example young people are widely unaware of the opportunities that available in the manufacturing sector. Entry into the mid-level and higher positions will require education and training. Some on-the-job-training will be available and part of the strategy, most employers will be looking for and need people that are job ready to fill key positions.

It is not rare to find a person now reaching retirement age that has worked for the same company most if not all of his or her career. Unlike the retiring generation, the millennials or echo-boomers, which are and will continue to be relied on to fill positions will be more mobile in their careers. Today’s companies will try to ensure key business processes are passed to younger employees, but the reality is they are going to be at the mercy of today’s young workers who change jobs frequently,  taking their newly acquired knowledge with them. The alternative strategy will require employers to take greater and more frequent risks and provide young workers with clear and rewarding career paths, and accelerate the promotion of workers. Cities and towns will have a key role in the sea change that will occur. Communities that have an attractive quality of life, nearby educational institutions, and are willing to make genuine investment in making their workforce the best it can be will weather the change. Communities that do not invest in their employers may find that they lose companies, because like the young workers, today’s companies are mobile.

Brockton  and other Gateway Cities offer a comparatively younger workforce due to immigration.  The future direction of immigration will affect the age demographics of the U.S. population. According to the Census Bureau’s demographic estimates in a “high immigration” scenario projects to be nearly twenty-two million more working-age residents in 2050 than in the “low immigration” scenario. The new Americans will be a source for entry-level workers that are vital for companies large and small.

As consumers the Baby Boom generation has unprecedented retirement age wealth due to being a generation that benefited from a post war housing boom and the value of the properties that has been passed on from their parents. Financial planning also has created a support system that will make people less reliant on Social Security alone. On the other hand, retirees do not contribute as much to the economy as the people who work do. Even with the increased wealth – compared to earlier generations - these retirees will spend less on average. For many the financial crisis of several years ago wiped away billions in retirement savings, though the recovery of the stock market has given more baby boomers the confidence to move forward with their retirement plans, albeit without the second home or luxury car. Many are down-sizing from their long-time family homes, some even moving back to cities where they can have access to an array of restaurants, activities, healthcare, and public transportation. In Brockton we are developing strategies to create more dining and entertainment in our Main St. corridor. The development of new housing, as well as easy access to the commuter rail, healthcare facilities (three hospitals), colleges (Massasoit Community College, Bridgewater State University, Stonehill College) and activities (Fuller Craft Museum, Campanelli Stadium) will make Brockton attractive to Baby Boomers as well as Millennials that when combined would form a robust and diverse 21st Century city.

Because of good planning and strong leadership Brockton will weather the “Silver Tsunami” and be prepared to meet the needs of new employers.

Michael Gallerani, is the executive director at Brockton 21st Century Corp., Brockton, Mass.