Late-career layoffs leave older workers jobless or earning less
A WSJ analysis found 24% of laid-off Americans ages 50 to 65 did not find another job, while 11% of those rehired took lower pay.
By Sofia Marchetti · World Affairs Correspondent
3 min read
Late-career layoffs are leaving many older Americans without a path back into work, according to a 2025 Wall Street Journal analysis of Boston College retirement data. The findings point to a hard labor-market reality for workers near retirement age: losing a job after 50 can carry lasting financial damage.
The Wall Street Journal analysis, based on Boston College’s 2012 to 2022 Retirement Study, found that 14% of U.S. citizens ages 50 to 65 had been laid off once during the previous decade. Another 4% had been laid off more than once, according to the analysis.
Among workers in that age group who had been laid off at least once, 24% had not found another job, the Journal reported. For those who did return to work, 11% accepted lower pay, according to the same analysis.
Older job seekers face longer searches
The data adds to concerns about Gen X workers and younger baby boomers who expect, or need, to stay employed longer. Fortune reported that many older workers are trying to remain in the labor force as living costs rise and retirement security becomes harder to reach.
The Journal analysis found that older workers tend to spend more time unemployed than younger workers. People ages 25 to 34 were unemployed for an average of 19 weeks, while workers ages 55 to 64 were unemployed for an average of 26 weeks, according to the analysis.
Fortune reported that the affected group is heavily represented by Gen X workers, who are now in the later stretch of their careers and often hold senior roles. Those jobs can be harder to replace because senior openings are more limited, and employers may view older candidates as closer to retirement than younger applicants, according to Fortune.
More Americans remaining at work later in life may also increase competition for higher-level positions, Fortune reported. That pressure can leave displaced older workers choosing between a long job search, a lower-paying role or retirement before they planned.
Financial pressure is high for Gen X
Separate workplace data cited by Fortune shows why many Gen X workers may have little room to absorb a job loss. A 2024 Deputy data set analyzed by Fortune found that 81% of Gen X workers said their current job did not pay enough to make them feel financially secure.
That share was higher than the figures for other generations in the Deputy data. Fortune reported that 75% of Gen Z workers, 73% of millennials and 71% of baby boomers said the same.
Deputy CEO Silvija Martincevic told Fortune that Gen X workers are dealing with rising costs, caregiving demands for both children and aging relatives, and the highest average debt of any U.S. generation.
Other studies cited by Fortune show a broader workplace problem for older employees. Achievers reported in 2024 that Gen X workers were 18% less likely than other generations to say they felt a strong sense of belonging at their organization and 30% less likely to say they received meaningful recognition at work.
A 2024 Resume Now study cited by Fortune found that nearly half of workers over 40 said they earned less than younger colleagues. About 49% said they made less than Gen Z and younger millennial coworkers for doing the same job, according to the study.
Resume Now also found that 22% of employees age 40 and older said their workplaces passed over older staff for challenging assignments. Another 16% said they had seen older employees passed over for promotions in favor of younger workers, according to the study.
This story draws on original reporting from Fortune.