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Photo: © Tetra Images/ age fotostock 

Older Hispanic Workers on the Rise
Demographic trends suggest that tomorrow’s employer will likely face a labor shortage—and older Hispanic workers could fill the gap.

By Bertrand M. Gutierrez
November 2009

Highlights from the Urban Institute study for AARP

Highlights from the National Council of La Raza study

Older Hispanic Workers: A Vital Resource

Steps to a New Job (Spring 2009)

More in Finance

Tom Quintana is no stranger to hard work. An Army veteran, he punches in, rarely gets sick, and spends his paycheck on his family. But Quintana, 71, didn’t know how hard it would be to find work when he decided to come out of retirement two years ago.

“I applied for everything,” says Quintana, of Mexican descent. The driver position? No call back. The restaurant position? Scratch. Golf caddy? Nothing. “I don’t know if it was the age factor, but I never got a response from any employer,” he says. He had worked the fields in rural Colorado, spent 14 years in the U.S. Army, later held blue-collar jobs, and eventually shed the comfort of retirement to scour the want ads. Yet despite his impeccable track record, he received not one call.

Quintana’s work history and desire to continue contributing as an employee reflect the findings of two new studies about Latino workers, the fastest-growing sector of the work force. A study by the Urban Institute for AARP forecasts a promising future for older Latino workers. Another study, by the National Council of La Raza (NCLR), a Latino civil rights and advocacy organization, documents today’s tremendous challenges. The bright future forecast for older Latinos could depend on whether the documented challenges are addressed—for all ages.
 
Those challenges are familiar to Quintana. In the 1950s he dropped out of school to load hay, earning a penny a bale—about $5 a day. Later he made $1.90 an hour in a potato warehouse, where he sorted, washed, bagged, and stacked potatoes. For extra hours he got paid straight time, no overtime. He’d arrive home with scraped knees and elbows. “Every penny we made, it went to Mom,” Quintana says.
 

The Studies

The Urban Institute and AARP set out to discover more about Hispanic workers ages 50 to 69, an age group referred to as “invisible Baby Boomers.” Their study found that older Hispanic workers:

Represent a fast-growing segment. Two years ago, there were 5.6 million in the United States. In ten years, the number will nearly double, to 11 million, and by 2050 it will quadruple. The number of non-Hispanic older workers, by contrast, is expected to grow by only about 50 percent.
Show up for work. From 2006-08, 15 percent of older Hispanics reported work disabilities, compared with 24 percent of black non-Hispanics and 14 percent of white non-Hispanics.
Come from good stock. At age 65, Hispanic men and women can expect to live three years longer than white non-Hispanics and four years longer than black non-Hispanics.

The National Council of La Raza’s recently released study about on-the-job challenges found that Latinos workers of all ages:

Take on dangerous jobs. In 2007, 937 Latinos died of work-related injuries, a rate about 21 percent higher than that of non-Hispanic white workers and nearly 18 percent higher than that of non-Hispanic black workers.

Work for little pay. Two out of five Hispanic workers in 2007 earned poverty-level wages—about $10.20 an hour to support a family of four.
Rarely get employer-funded nest eggs. In 2006, only 35 percent of Latinos ages 21 to 64 had access to retirement savings plans or pensions, compared to 61 percent of non-Hispanic whites and 53 percent of non-Hispanic blacks.

Present and Future
Things haven’t changed much for many of today’s 22 million Latino workers, according to NCLR. Hispanics are still taking on dangerous backbreaking jobs for low pay. The NCLR study, “Fractures in the Foundation: The Latino Worker’s Experience in an Era of Declining Job Quality,” reveals that two in five Latino workers earn poverty-level wages, and fewer than one in three have access to retirement plans.
 
Even worse: Latinos are more likely to die from a job-related injury. In 2007, 937 Latinos died from job-related injuries, a rate 21 percent higher than that of non-Hispanic white workers and 18 percent higher than that of non-Hispanic blacks. “It’s outrageous and unacceptable that a country like ours would allow people to work to death,” said NCLR President and CEO Janet Murguía during a recent teleconference with reporters.
 
Labor laws should be more aggressively enforced, said Esther Lopez, director of civil rights and community action for the United Food and Commercial Workers International Union, during the same teleconference. “Every day, workers go to work and they get cheated out of their pay. They’re discriminated against on the job; they’re injured on the job. Many times [it’s] going unreported. Having good laws on the books does no one any good if the workers they’re meant to protect don’t know about them.”

Older Latino workers may lack protections, but they don’t lack numbers. In fact, employers likely will come to rely even more on older Hispanics because of a possible labor shortage, according to research by the Urban Institute for AARP. The study, “50+ Hispanic Workers: A Growing Segment of the U.S. Workforce,” forecasts that the traditional labor pool—individuals ages 25 to 54—will hardly increase over the next ten years. Although this pool of workers shot up 71 percent from 1970 to 2000, it’s expected to inch up by only 2.6 percent from now until 2020, says Richard Johnson, a senior fellow at the Urban Institute.
 
At the same time, the population aged 50 to 69 will expand by 34 percent. As part of that Baby Boomer wave, the number of older Hispanics is projected to grow to about 11 million in ten years, nearly double the 5.6 million boomers in 2007. Moreover, older Hispanics remain active in the workforce—about seven in 10 were either working or looking for work in 2007. Quintana was one of them.
 
“I think we’re going to have a labor shortage, and employers are going to have less to choose from,” Johnson says. “Those trends are really going to increase demand for all older workers, and that will leak over to Hispanics.”

Starting Over
Hiring applicants such as Quintana is a good bet, says Ignacio Salazar, chair of the Hispanic Association on Corporate Responsibility, a coalition of 13 organizations dedicated to increasing the presence of Hispanics in corporate America. “[Companies] just need to give them an opportunity,” he says.
 
Quintana got that opportunity through the U.S. Labor Department’s Senior Community Service Employment Program (SCSEP), which provides training for low-income job seekers ages 55 and older. He came out of retirement because he wanted to contribute to the household. “I thought to myself, ‘My wife, she’s been working.’ I felt like I was taking advantage of her, you know?” he says. “I feel proud of myself, knowing I went out there at my age and made it.” Now he works 30 hours a week as a receptionist at Catholic Charities in Greeley, Colorado.

“Age is not a liability. It’s an asset,” says Paul Scheidig, director of SCSEP at the Rocky Mountain SER (Service, Employment, and Redevelopment). “We make sure employers understand that.”


Illustration: Rod Little

The traditional labor pool (workers aged 25 to 54) expanded dramatically up to the year 2000, but during the next decade it’s projected to increase by a paltry 2.6 percent—and the slowdown could lead to a labor shortage.
 
As the growth rate of the traditional labor pool slows, the number of Hispanics workers aged 50 to 69 is expected to increase rapidly—and could become a vital resource for employers.



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