Baby Boomer Retirements May Soften the Blow of AI Job Loss

By Al Bonner - The Boomer Report

The headlines of mass job loss due to artificial intelligence and automation appear to be getting louder and louder. Some categories are already being impacted, such as customer service, retail, administrative support and of course tech jobs, specifically coders. However, there is one demographic factor that is rarely part of the conversation: The retirement wave of the baby Boomer generation, born 1946 to 1964.

According to the U.S. Bureau of Labor Statistics (BLS), workers aged 65 and older are projected to make up 8.6% of the labor force by 2032, up from 6.6% from 2022. Yet, millions of Boomers have already or will be exiting the workforce in the next five years. Much of this exodus will be from roles that are more subject to automation: office clerks, cashiers, bookkeepers, and other routine or clerical positions.

This demographic shift could redefine the true impact of AI. Instead of mass layoffs, many companies will choose not to replace retiring employees instead of actively terminating workers. In sectors like retail and banking, for example, AI-driven self-checkout, chatbots, and teller automation are reducing the need for backfills.

The data really backs this up. BLS projections show significant declines by 2033 in roles like cashiers (-353,000 jobs), customer service representatives (-149,000), and office clerks (-148,000). Historically, such declines might trigger layoffs; in the next five years, they’re more likely to be offset through normal retirement turnover.

If this projection holds true, a more moderate AI job impact might be possible, but that doesn’t lessen the disruption. Hiring freezes will be common in at-risk categories, and younger workers may find fewer entry-level openings in traditional clerical or support roles.

For policymakers, educators, and businesses, this is an opportunity to prepare for AI adoption and look at staff redeployment into areas where human abilities remain essential.