As the world’s population continues to age at an unprecedented rate, the so-called “Silver Tsunami” is becoming one of the most critical demographic shifts of the 21st century. This term refers to the global surge in the number of older adults, particularly those aged 65 and older, as baby boomers enter retirement. The impacts of this demographic shift are far-reaching, affecting everything including our workforce and economic growth.

What is the Silver Tsunami?

The Silver Tsunami is not a literal wave, but a metaphor describing the dramatic increase in the proportion of elderly people within a population. This phenomenon is primarily driven by the aging of the Baby Boomer generation—the 78 million people born between 1946 and 1964—along with significant improvements in healthcare that have led to longer life expectancies. According to the World Health Organization, by 2050, the global population of people aged 60 years or older is expected to reach 2.1 billion, a sharp increase from 1 billion in 2020.

In the United States, the Silver Tsunami is already underway. The U.S. Census Bureau reports that in 2020, approximately 16.5% of the population was 65 or older, and by 2030, that percentage is expected to rise to 21.6%, meaning that one in every five Americans will be of retirement age. In fact, the baby boomer generation has already started to retire in large numbers, creating ripple effects across the workforce.

Economic Impacts: A Shrinking Workforce and Rising Costs

The aging population has significant economic implications. As more people retire and fewer young people enter the workforce, the labor market faces potential shortages in key sectors. Interestingly, the U.S. Bureau of Labor Statistics (BLS) notes that, between 2022 and 2032, the labor force participation rate for individuals aged 65 and older is expected to continue rising as older workers remain in the workforce longer than previous generations. However, this increase is not expected to fully offset the labor gap left by retiring baby boomers. A January 2023 report from the Federal Reserve Bank of Atlanta noted that there were, at that point, 1.7 job openings in the U.S. for every available worker.

The shortage of workers in certain industries, especially in manufacturing and skilled trades, could lead to labor cost inflation and lower productivity, unless businesses adapt through automation or the increased participation of underrepresented groups in the workforce.

How to Weather the Silver Tsunami

Addressing the challenges of the Silver Tsunami requires a multi-faceted approach. Automation technologies will continue to advance in the manufacturing sector, but they will never supplant the need for a large, skilled, competent workforce. Thus, proven solutions focused on your workforce are essential to ensure the stability of our industry and supply chain.

Some potential solutions include:

1. Increasing Workforce Participation Among Older Adults: Encouraging older individuals to stay in the workforce for longer can help mitigate labor shortages. This may include offering more flexible work options, reducing age discrimination, offering new training content on emerging equipment automation/technology, and providing incentives for older workers to continue their careers.
   
2. Capturing Your Knowledge Repository: Senior members of our workforce often have the most in-depth knowledge of our processes, equipment and procedures. It is critical to invest in training technology that captures these valuable best practices and operational knowledge to ensure continuity in training our future new employees.  
   
3. Promoting Lifelong Learning: Encouraging lifelong learning and retraining opportunities for older adults can help them stay competitive and relevant in the evolving workforce, adapting to new industries and technology while we optimize the shrinking labor pool.
   
4. Streamlining Your Workforce Development Programs: The solutions above, and others, call for more workforce engagement, more interaction, more activity. The problem is the learning and development teams at many manufacturers are already stretched thin; adding more seems out of the realm. But not if they’re using a modern learning management system (LMS) built specifically for manufacturing. While technology in every other aspect of the manufacturing industry has advanced, training is often still done with pen, paper, and a spreadsheet. This simply cannot be the path forward. Tapping into the power of a manufacturing-focused LMS will drastically reduce the admin time for training, opening up the window for these enhanced engagement initiatives.

Looking Towards the Future

The Silver Tsunami is not just a passing wave; it represents a profound transformation that will shape the future of our workforce. While the challenges are significant, they also present an opportunity for innovation and growth. By adapting to the needs of an aging population, we can create a more inclusive, resilient, and sustainable future for all generations. Addressing the Silver Tsunami with thoughtful workforce learning and development planning will be essential in ensuring that aging populations can continue to contribute to society while we maintain a productive and educated workforce.