Working Longer Is the Growing Trend for Americans

WASHINGTON - On Labor Day 2008, the American worker's holiday carries a wry edge: more Americans are working later into life than at any point in a generation, driven by battered nest eggs, shrinking pensions and a sense that retirement is becoming a luxury.

The share of Americans 65 and older who hold jobs has climbed steadily since the late 1990s and now stands at about 16 percent, the Bureau of Labor Statistics reports — the highest level since the early 1970s.

Economists trace the shift to the decline of the traditional pension, the rise of the 401(k) — whose balances have been mauled this year by the stock market — and longer, healthier lives.

The housing bust has added a new twist: older workers who counted on home equity for retirement are watching it evaporate. In hard-hit states, AARP counselors report surging demand from seniors re-entering the workforce.

"I was going to retire at 62. Now I'm thinking 70, maybe," said a 61-year-old auto-parts manager in Detroit. "The house isn't worth what it was, and neither is the market."

There is an upside, researchers say: older workers stay more socially connected and mentally sharp, and employers facing retirements among baby boomers are slowly warming to flexible arrangements.

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Associated Press writers contributed to this report.

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