{"id":10393,"date":"2017-11-15T14:51:12","date_gmt":"2017-11-15T19:51:12","guid":{"rendered":"https:\/\/www.hiringlab.org\/auau\/?p=10393"},"modified":"2022-08-13T03:01:33","modified_gmt":"2022-08-12T17:01:33","slug":"older-australian-workers","status":"publish","type":"post","link":"https:\/\/www.hiringlab.org\/au\/blog\/2017\/11\/15\/older-australian-workers\/","title":{"rendered":"Australia&#8217;s Workforce is Older Than It&#8217;s Ever Been, Creating New Challenges"},"content":{"rendered":"\n<p><b>Key points: <\/b><\/p>\n\n\n\n<ol class=\"wp-block-list\"><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Australia is getting older, putting downward pressure on the share of people in the labor force. But that trend is partly offset by rising numbers of older Australians who continue to work.<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">People are continuing to work for a number of reasons, including improved health, more service sector jobs, and a need to boost superannuation. <\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Older workers are concentrated in management and professional roles, but are also overrepresented in traditional blue collar occupations. <\/span><\/li><\/ol>\n\n\n\n<hr class=\"wp-block-separator has-css-opacity\" \/>\n\n\n\n<p><span style=\"font-weight: 400\">Australia&#8217;s population is getting older, putting downward pressure on economic growth and labour force participation\u2014the proportion of the civilian adult population holding jobs or looking for work. But the drag on growth is moderated by the fact that older Australians are remaining in the workforce longer than previous generations.<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">In fact, labour force participation by people 55 and older has never been higher. And that\u2019s helping offset the economic impact of an ageing population. What is more, older worker participation is expected to rise further in coming decades because of a gradual rise in the retirement age from 65\u00bd currently to 67 by 2023. <\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">For Australian businesses, the ageing labour force represents a challenge. Employers are responding by stepping up their hiring of older workers and keeping them on the job longer. &nbsp;<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">Among our findings:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Improved health, more jobs in the service sector, favourable tax treatment of superannuation contributions and a rise in flexible work options have helped push the labour force participation rate of older Australians from 47% in early 2000 to 67% today.<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">The lingering effect of the global financial crisis on superannuation savings has forced some older employees to work longer than they planned. <\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Older Australians work in a two-tier economy: They are more likely to hold management jobs than their 25\u201354 year-old counterparts, but they\u2019re also disproportionately working in labourer, clerical or driver roles.<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Economies around the world are confronting the burden of an ageing population, however, the impact both in Australia and across other advanced economies has been partially offset by the readiness of older workers to stay in the labour force. <\/span><\/li><\/ul>\n\n\n\n<h5 class=\"wp-block-heading\"><b>Changing demographics drive economic growth<\/b><\/h5>\n\n\n\n<p><span style=\"font-weight: 400\">Australians are having fewer children and living longer. And, when we do have kids, we\u2019re having them at an older age. In other words, the average worker in Australia today is different from his or her counterpart a generation ago. And that\u2019s before you consider shifts in female labour force participation, immigration or changes in skill sets.<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">Almost 27% of Australia\u2019s population is 55 or older, up from 24% in 2006 and 20% in 1996. The median age in Australia is currently 37, an increase of three years since 1996 and eight years since 1980. At the same time, the share of the population between 25 and 54\u2014the years of greatest economic productivity\u2014has fallen to its lowest level since 1987.<\/span><\/p>\n\n\n\n<figure class=\"wp-block-image\"><img loading=\"lazy\" decoding=\"async\" width=\"1495\" height=\"1115\" src=\"https:\/\/www.hiringlab.org\/wp-content\/uploads\/sites\/6\/2017\/10\/Ageing-Australia-Graph-01.png\" alt=\"\" class=\"wp-image-10394\" srcset=\"https:\/\/d341ezm4iqaae0.cloudfront.net\/hiringlaborg\/sites\/6\/2017\/10\/03044305\/Ageing-Australia-Graph-01.png 1495w, https:\/\/d341ezm4iqaae0.cloudfront.net\/hiringlaborg\/sites\/6\/2017\/10\/03044305\/Ageing-Australia-Graph-01-300x224.png 300w, https:\/\/d341ezm4iqaae0.cloudfront.net\/hiringlaborg\/sites\/6\/2017\/10\/03044305\/Ageing-Australia-Graph-01-1024x764.png 1024w, https:\/\/d341ezm4iqaae0.cloudfront.net\/hiringlaborg\/sites\/6\/2017\/10\/03044305\/Ageing-Australia-Graph-01-768x573.png 768w\" sizes=\"auto, (max-width: 1495px) 100vw, 1495px\" \/><figcaption>Line chart titled &#8220;Australia&#8217;s population is getting older.&#8221; With a vertical axis ranging from 0% to 50%, Indeed tracked Australia&#8217;s population by age group as a share of population along a horizontal axis ranging from 1980 to 2015 with lines representing 25-54 year olds and 55 years or older. Almost 27% of Australia\u2019s population was 55 or older, up from 24% in 2006 and 20% in 1996. Caption added post-publication.<\/figcaption><\/figure>\n\n\n\n<p><span style=\"font-weight: 400\">Changes this pronounced have strong effects on growth, income, and productivity, and they play a big role in determining how successful a nation\u2019s economy may be. Australia is no exception. <\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">Throughout the 1980s and 1990s, Australia enjoyed what Reserve Bank governor Philip Lowe has called a \u201c<\/span><a href=\"http:\/\/www.rba.gov.au\/speeches\/2014\/sp-dg-120314.html\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400\">demographic dividend<\/span><\/a><span style=\"font-weight: 400\">.<\/span><span style=\"font-weight: 400\">\u201d It was a period when baby boomers were in their prime, and social and technological change encouraged many women to enter the workforce.<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">Employment growth was strong, the unemployment rate fell and labour force participation rose to historically high levels. <\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">Over the past 15 years though, demographics have not been so kind to Australia. Since 2002, per capita real gross domestic product, a key measure of the economy\u2019s overall performance, has grown at a tepid 1.2% annual pace, compared with average growth of 2.0% throughout the 1980s and 1990s. There are a number of reasons for the growth slowdown, including the global financial crisis that began about a decade ago. But one likely contributing factor has been Australia\u2019s ageing population. <\/span><\/p>\n\n\n\n<h5 class=\"wp-block-heading\"><b>The hardest working generation of older Australians <\/b><\/h5>\n\n\n\n<p><span style=\"font-weight: 400\">Older workers are less likely to be in the labour force than younger workers due to retirement and other factors. As Australia\u2019s population has aged, the economic effects have been noticeable, subtracting around 1.3 percentage points from Australia\u2019s labour force participation rate since the 2007\u201308 financial year.<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">But the impact of an ageing population has been partially offset by the greater willingness of today\u2019s older Australians to keep working compared with their counterparts in the past. For people between 55 and 64, participation has increased to 67%, from 47% in early 2000. And the trend is even more dramatic among those who have reached traditional retirement age\u2014labour force participation by people 65 and over has more than doubled since 2000. The larger share of older workers remaining in the labour force has added around 1.1 percentage points to Australia\u2019s participation rate.<\/span><\/p>\n\n\n\n<figure class=\"wp-block-image\"><img loading=\"lazy\" decoding=\"async\" width=\"1495\" height=\"1115\" src=\"https:\/\/www.hiringlab.org\/wp-content\/uploads\/sites\/6\/2017\/10\/Ageing-Australia-Graph-02.png\" alt=\"\" class=\"wp-image-10395\" srcset=\"https:\/\/d341ezm4iqaae0.cloudfront.net\/hiringlaborg\/sites\/6\/2017\/10\/03044305\/Ageing-Australia-Graph-02.png 1495w, https:\/\/d341ezm4iqaae0.cloudfront.net\/hiringlaborg\/sites\/6\/2017\/10\/03044305\/Ageing-Australia-Graph-02-300x224.png 300w, https:\/\/d341ezm4iqaae0.cloudfront.net\/hiringlaborg\/sites\/6\/2017\/10\/03044305\/Ageing-Australia-Graph-02-1024x764.png 1024w, https:\/\/d341ezm4iqaae0.cloudfront.net\/hiringlaborg\/sites\/6\/2017\/10\/03044305\/Ageing-Australia-Graph-02-768x573.png 768w\" sizes=\"auto, (max-width: 1495px) 100vw, 1495px\" \/><figcaption>Line chart titled &#8220;Participation by older Australians has never been higher.&#8221; With a vertical axis ranging from 0% to 70%, Indeed tracked Australian labour force participation rate as a share of age group population with lines representing 55-64 years and 65+ years along a horizontal axis ranging from 2000 to 2016. For people between 55 and 64, participation increased to 67%, from 47% in early 2000. Caption added post-publication.<\/figcaption><\/figure>\n\n\n\n<p><span style=\"font-weight: 400\">Since the beginning of the global financial crisis, workers 55 and over have accounted for around half the increase in total hours worked in the Australian economy. They are working slightly fewer hours per person than previous generations of older workers but collectively, today\u2019s older Australians are working harder than any previous generation in their age group.<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">Older Australians are staying on the job for a variety of reasons: <\/span><\/p>\n\n\n\n<ol class=\"wp-block-list\"><li><span style=\"font-weight: 400\">Older Australians are healthier. We are living and staying healthy longer, and that has translated into longer, more productive careers.&nbsp;<\/span><\/li><li><span style=\"font-weight: 400\">Changes in the type of work performed in Australia\u2014including smaller shares of workers in construction, manufacturing and agriculture\u2014have created more opportunities for older workers. The service sector, which now accounts for around 80% of Australian jobs, tends to be less physically intensive. <\/span><\/li><li><span style=\"font-weight: 400\">Workplaces have become more open to flexible working arrangements. <\/span><a href=\"http:\/\/blog.au.indeed.com\/2016\/02\/18\/high-skill-job-seekers-want-flexibility\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400\">Workers are demanding greater flexibility<\/span><\/a> <span style=\"font-weight: 400\">&nbsp;and employers are obliging. Older workers are well placed to take advantage of these arrangements as they move toward retirement. <\/span><\/li><li><span style=\"font-weight: 400\">The global financial crisis took a bite out of the superannuation savings of many Australians, forcing some older employees to work longer than they had planned. Australia\u2019s baby boomers tend to be asset-rich, typically in residential property. But many are income-poor and their superannuation balances tend to be modest, limiting their retirement income.<\/span><\/li><li><span style=\"font-weight: 400\">The superannuation system\u2019s tax incentives encourage people to keep working. Salary sacrifice and voluntary contributions allow households to reduce their tax liability and prolong their superannuation payments. <\/span><\/li><\/ol>\n\n\n\n<p><span style=\"font-weight: 400\">One factor that hasn\u2019t yet had an impact, but will push labour force participation higher in the future, is a rise in the age at which workers can access their superannuation, known as the preservation age. People born before July 1, 1960 can tap into their superannuation when they are 55. But those born after July 1, 1964 have to wait until they turn 60. With the retirement age also rising, it is probable that the preservation age will rise further in coming decades. <\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">Finally, we don\u2019t believe that businesses are employing older workers because there aren\u2019t &nbsp;alternatives. While some skill shortages exist, which could create job opportunities for older workers, Australia doesn\u2019t have an overall labour shortage. The nation\u2019s population rose 1.5% in 2016\u2014almost twice the growth rate in the US and the OECD, the organisation representing many of the world\u2019s leading economies. And Australia\u2019s measures of labour underutilisation remain elevated. <\/span><\/p>\n\n\n\n<h5 class=\"wp-block-heading\"><b>Older workers are concentrated in professional and management occupations<\/b><\/h5>\n\n\n\n<p><span style=\"font-weight: 400\">Older workers are most likely to be in professional occupations, with around 23% holding such jobs. Another 17% are in management positions, while almost 16% are in clerical or administrative roles. <\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">At the same time, older workers disproportionately work as machinery operators and labourers, which are among the occupations that have experienced the weakest growth over the past decade. This overrepresentation may be because younger workers are better placed to change occupations or develop new skills. &nbsp;<\/span><\/p>\n\n\n\n<figure class=\"wp-block-image\"><img loading=\"lazy\" decoding=\"async\" width=\"1495\" height=\"1115\" src=\"https:\/\/www.hiringlab.org\/wp-content\/uploads\/sites\/6\/2017\/10\/Ageing-Australia-Graph-03.png\" alt=\"\" class=\"wp-image-10396\" srcset=\"https:\/\/d341ezm4iqaae0.cloudfront.net\/hiringlaborg\/sites\/6\/2017\/10\/03044304\/Ageing-Australia-Graph-03.png 1495w, https:\/\/d341ezm4iqaae0.cloudfront.net\/hiringlaborg\/sites\/6\/2017\/10\/03044304\/Ageing-Australia-Graph-03-300x224.png 300w, https:\/\/d341ezm4iqaae0.cloudfront.net\/hiringlaborg\/sites\/6\/2017\/10\/03044304\/Ageing-Australia-Graph-03-1024x764.png 1024w, https:\/\/d341ezm4iqaae0.cloudfront.net\/hiringlaborg\/sites\/6\/2017\/10\/03044304\/Ageing-Australia-Graph-03-768x573.png 768w\" sizes=\"auto, (max-width: 1495px) 100vw, 1495px\" \/><figcaption>Bar chart titled &#8220;Older workers more likely to be managers &amp; professionals.&#8221; With a horizontal axis ranging from 0% to 30%, Indeed compared the Australian employment by various industries and age groups as a share of employment during 2016-2017. Older workers were most likely to be in professional occupations, with around 23% holding such jobs. Caption added post-publication.<\/figcaption><\/figure>\n\n\n\n<p><span style=\"font-weight: 400\">Employment for older workers is also growing rapidly in nontraditional occupations. We wouldn\u2019t necessarily expect ICT professional or hospitality to be growth opportunities for older workers, but their numbers in these occupations have increased 9% and 8% respectively since the 2007\u201308 financial year.<\/span><\/p>\n\n\n\n<figure class=\"wp-block-image\"><img loading=\"lazy\" decoding=\"async\" width=\"1495\" height=\"1333\" src=\"https:\/\/www.hiringlab.org\/wp-content\/uploads\/sites\/6\/2017\/10\/Ageing-Australia-Table-01.png\" alt=\"\" class=\"wp-image-10398\" srcset=\"https:\/\/d341ezm4iqaae0.cloudfront.net\/hiringlaborg\/sites\/6\/2017\/10\/03044303\/Ageing-Australia-Table-01.png 1495w, https:\/\/d341ezm4iqaae0.cloudfront.net\/hiringlaborg\/sites\/6\/2017\/10\/03044303\/Ageing-Australia-Table-01-300x267.png 300w, https:\/\/d341ezm4iqaae0.cloudfront.net\/hiringlaborg\/sites\/6\/2017\/10\/03044303\/Ageing-Australia-Table-01-1024x913.png 1024w, https:\/\/d341ezm4iqaae0.cloudfront.net\/hiringlaborg\/sites\/6\/2017\/10\/03044303\/Ageing-Australia-Table-01-768x685.png 768w\" sizes=\"auto, (max-width: 1495px) 100vw, 1495px\" \/><figcaption>Table titled &#8220;Australian employment among workers 55 years and older.&#8221; Indeed listed occupations comparing the average 2016-2017 employment in the thousands and the average annual growth since 2007-2008. ICT professional or hospitality opportunities increased 9% and 8% respectively since the 2007\u201308 financial year. Caption added post-publication.<\/figcaption><\/figure>\n\n\n\n<p><span style=\"font-weight: 400\">The ageing of Australia\u2019s population has itself created opportunities for older workers. The number of older people working as carers and aides has climbed by an average of 8% a year since the 2007\u201308 financial year, and presumably much of that increase involves serving seniors. Growth in health professions has also been strong. In other words, older people caring for other older people may be one of Australia\u2019s growth industries. &nbsp;&nbsp;<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key points: Australia is getting older, putting downward pressure on the share of people in the labor force. But that trend is partly offset by rising numbers of older Australians who continue to work. People are continuing to work for a number of reasons, including improved health, more service sector jobs, and a need to [&hellip;]<\/p>\n","protected":false},"author":41,"featured_media":10397,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"recruiter-hub-blocks.php","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"post_mwm_category":[224],"post_topic":[],"post_content_type":[],"post_duration":[],"post_actions":[],"post_franchise":[],"post_mwm_author":[182],"class_list":["post-10393","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized","post_mwm_category-state-of-the-labour-market","post_mwm_author-cpickering"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Australia&#039;s Workforce is Older Than It&#039;s Ever Been, Creating New Challenges - Indeed Hiring Lab Australia<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.hiringlab.org\/au\/blog\/2017\/11\/15\/older-australian-workers\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Australia&#039;s Workforce is Older Than It&#039;s Ever Been, Creating New Challenges - Indeed Hiring Lab Australia\" \/>\n<meta property=\"og:description\" content=\"Key points: Australia is getting older, putting downward pressure on the share of people in the labor force. But that trend is partly offset by rising numbers of older Australians who continue to work. People are continuing to work for a number of reasons, including improved health, more service sector jobs, and a need to [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.hiringlab.org\/au\/blog\/2017\/11\/15\/older-australian-workers\/\" \/>\n<meta property=\"og:site_name\" content=\"Indeed Hiring Lab Australia\" \/>\n<meta property=\"article:published_time\" content=\"2017-11-15T19:51:12+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-08-12T17:01:33+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.hiringlab.org\/au\/wp-content\/uploads\/sites\/6\/2017\/10\/Ageing-Australia-Header.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1495\" \/>\n\t<meta property=\"og:image:height\" content=\"737\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Callam Pickering\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.hiringlab.org\/au\/blog\/2017\/11\/15\/older-australian-workers\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.hiringlab.org\/au\/blog\/2017\/11\/15\/older-australian-workers\/\"},\"author\":{\"name\":\"Callam Pickering\",\"@id\":\"https:\/\/www.hiringlab.org\/au\/#\/schema\/person\/cf678ee0c33f8efd813e6f97d1490170\"},\"headline\":\"Australia&#8217;s Workforce is Older Than It&#8217;s Ever Been, Creating New Challenges\",\"datePublished\":\"2017-11-15T19:51:12+00:00\",\"dateModified\":\"2022-08-12T17:01:33+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.hiringlab.org\/au\/blog\/2017\/11\/15\/older-australian-workers\/\"},\"wordCount\":1597,\"image\":{\"@id\":\"https:\/\/www.hiringlab.org\/au\/blog\/2017\/11\/15\/older-australian-workers\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/d341ezm4iqaae0.cloudfront.net\/hiringlaborg\/sites\/6\/2017\/10\/03044304\/Ageing-Australia-Header.jpg\",\"articleSection\":[\"Uncategorized\"],\"inLanguage\":\"en-AU\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.hiringlab.org\/au\/blog\/2017\/11\/15\/older-australian-workers\/\",\"url\":\"https:\/\/www.hiringlab.org\/au\/blog\/2017\/11\/15\/older-australian-workers\/\",\"name\":\"Australia's Workforce is Older Than It's Ever Been, Creating New Challenges - 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But that trend is partly offset by rising numbers of older Australians who continue to work. 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