Policy Brief: Older Workers in California

California's workforce is being reshaped by the unprecedented aging of the state's population. By 2040, roughly 23 percent of Californians will be 65 or older-up from 14 percent in 2020-while the working-age population will remain virtually unchanged.

Our new report examines trends in labor force participation among older Californians and projects how the size and composition of the older workforce will evolve through 2040.

California's workforce is aging

Older workers are a critical and growing share of California's labor force. In 2024, 754,000 more Californians age 65 and over were working than in 2006, accounting for 30 percent of the state's labor force growth.

Our projections show the older labor force increasing from approximately 1.3 million in 2024 to 1.8 million by 2040. The overall labor force participation rate (LFPR) for older Californians will remain level during that period. This is due to fast population growth among adults 75 and older, who have very low labor force participation; higher participation among those 65 to 74 will partly offset this effect.