[ontap]

Companies routinely let older more costly workers go for younger less costly. People should be aware of this and plan accordingly. Business is business! Happened to me and I hit the ground on my feet.

[goodnesswins]

Well...yes...that CAN be true....unless the company does NOT have any younger workers to replace them (I think that’s why my husband still has his job.)

[Arguendo]

Agreed. It’s because employees expect to see their salaries increase gradually every year, whether or not the value of their work product increases correspondingly. As a result employers often paid young workers at less than they were worth but increased their pay with age until they were paying older workers more than they were worth (an implicit bargain of sorts).

In some fields this isn’t really true anymore, but it still is in many industries. The implicit bargain worked back when people stayed with the same company their entire career, but doesn’t really make sense in today’s economy. If the pattern were eliminated older people would have an easier time finding and keeping work.