Give us a bit more analysis, and don't make us quite so dependent upon the photos.
Older needles dropping off can usually be diagnosed by counting the nodes on the branches. Pretty much all the needles on a node of the same age will be yellowing and falling off.
Apart from that, get close to some of the dying needles, and tell us if they are showing some green needles on the same twig as the yellowing. Follow the yellowing needles outward to the tip, and tell us what you are seeing as to where the green starts going yellow. Are there more yellow needles on one side of the tree than the other? If so, which side looks worse, with respect to the compass and to any possible irrigation heads.
Take a twig that is showing some yellowing (but still has green present), then get a sharp knife and dissect the wood. Split the twig lengthwise and make a couple of cross sections; send us pictures of that, too. Systemic diseases generally can be observed in the wood. Damage from mites seldom does. Some insects dine upon or lay eggs in the wood, and when they begin dwelling in the wood, they kill off the twig. This usually shows in a very clear demarcation on the needles, though: green... then dead.
There is lots of stuff to look for, and we just aren't likely to guess correctly without all the information available, unless your problem is one of the easy to diagnose problems.
Now all of that stuff being said, I have some general observations. It is October, and most of the fungal diseases will be doing their spreading and infecting in the spring rains. It's kinda late in the season to be an acute fungal problem. Almost the same story for mites, especially since they flourish best and show the most damage in warm weather. White pines are infamous for losing their 2 year old needles, but that too is generally a spring event. I am not aware of any predictable age for spruce needles to drop, but spruce trees are not my strong point for diagnosis, either.
I'd look real hard for a specific branch-related problem, rather than anything systemic. Even a kid climbing your tree can damage a few twigs and make it look like death has descended on your favorite tree.
That green stuff on your branches looked like lichens to me; probably nothing to be concerned about. If you can pair that observation to where the damaged needles are, then send some better pictures.
Don't be afraid to prune out a branch section that shows some damage. Sometimes a pattern is easiest to spot when it is isolated from all the other branches.