Workforce Demographic Shifts in the Mid-Valley: Challenges and Opportunities
April 23, 2025With shifts in employee age distribution reshaping labor patterns across various industries, workforce demographics in the Mid-Valley region are changing. As older workers near retirement and younger individuals join the workforce, these developments create both challenges and opportunities for regional industries. Examining these demographic trends is essential to understanding their implications for economic stability and labor availability in the future.
Mining and Natural Resources: The Sector with the Most Workers Nearing Retirement
The above graph illustrates the distribution of workers aged 65 and older across industries in the Mid-Valley region in the first quarter of 2024. Natural resources and mining has the highest concentration of older employees across the Mid-Valley counties. In the Salem Metropolitan Statistical Area (MSA), approximately 18% of workers in this sector are 65 and older. Similarly, 15% in Linn County and 17% in Yamhill County are at or near retirement. The professional and business services sector also has a notable proportion of older employees ranging from 9% to 10%. In contrast, manufacturing has the lowest share of workers 65 years and over.
In Linn County, only 6% of employees in manufacturing are around retirement age, followed by 7% in the leisure and hospitality sector. In the Salem MSA, 6% of employees in the information sector are 65 or older. Financial activities and other services in the Salem MSA are also likely to face losses due to retirements. In Yamhill County, 8% of employees in both the leisure and hospitality and manufacturing sectors are approaching over 65.
Leisure and Hospitality: A Hub for Rising Young Talent
At the younger end of the workforce, in the first quarter of 2024, leisure and hospitality is a key industry for nurturing new talent. In Linn County, 36% of employees in this sector are aged 14 to 24, compared to 30% in the Salem MSA and 32% in Yamhill County. Similarly, the trade, transportation, and utilities industry employs a significant proportion of younger workers, with individuals aged 14 to 24 comprising 15% to 16% of the workforce. Many younger workers are also concentrated in the retail trade industry. While leisure and hospitality benefits from a youthful labor pool, it also experiences higher turnover rates due to the seasonal nature of some roles and lower than average wages.
In contrast, the Mid-Valley's financial activities and public administration industries have less than 9% of their workforce in the younger age group, while 7% to 14% of the workforce in these industries consists of individuals aged 65 and older. This highlights a potential challenge in attracting and retaining emerging talent.
Bridging Retirement Gaps and Youth Shortages in Natural Resources and Mining is Important
Despite a concentration of younger workers in certain sectors, others face significant challenges in workforce replenishment. For instance, approximately 16% of employees in the mining and natural resources industry are nearing retirement, while only 8% to 9% of employees are under the age of 25. Similarly, the education and health services sectors could lose 8% to 9% of their workforce to retirement soon, but they have a slightly stronger representation of younger workers, at 9% to 13%. The information industry sees 6% to 11% of its workforce nearing retirement, while 8% to 10% consists of younger employees prepared to fill these roles.
In conclusion, the shifting workforce demographics in the Mid-Valley region underscore the critical need for strategic workforce planning. Industries such as mining and natural resources must address talent shortages through succession planning, targeted training, and recruitment efforts. Similarly, sectors like education, health services, and the information industry should prioritize attracting and retaining younger workers to sustain operations. Proactive measures across all industries will be essential for maintaining long-term economic stability and adapting to the region’s evolving workforce needs.