A fifth of all Australian’s are too old for their current employer
Australia’s population is ageing. By 2030 there will be more people aged over 50 than under 10.
Globally, that trend is even more pronounced, with the US National Institute on Ageing predicting that by 2030 there will be more than 1 billion people aged over 65 years – effectively 1 in 8 of the world’s population.
We’re living longer, many of us are living healthier lives, the birth rate is slowing, and an older population is creating challenges that we haven’t faced before, both here and around the world.
Our ageing population presents several issues for society in general, including:
- Economic pressure through increased health care and increasing aged care pension costs.
- A decline in the working age population and a consequent reduction in income tax yield.
- Greater levels of demand for aged care.
- And, according to the recent Intergenerational report from The Treasury, reduced productivity.
However, from an employment perspective, the biggest issue facing organisations is arguably the last bastion of overt prejudice in Australian workplaces – age discrimination.
According to the Voice of Experience, research undertaken by Denied to Many amongst 1,150 Australians aged 50+, just over 21% of Australians over the age of 50 have experienced discrimination, solely based of their age, in their current workplace. Of this group, 49% were aged 50 – 54 years when they first experienced ageism in the workplace.
Our ageing population will not just put pressure on the economy, but also on workforce participation. As our population ages, the proportion of workforce participation will also change.
By 2040 the proportion of the population aged 50 – 59 years will increase by over 15% while the proposition aged 25 – 50 will decrease by 9.4%. If Australian businesses don’t address age discrimination soon, then both recruitment and retention will continue to suffer.
This significant reduction in people aged 35 – 50 years will put increasing pressure on experienced hires and middle management vacancy rates. This pressure can be relieved by helping hiring managers overcome their inherent bias against midlife workers.
53% of 50 – 54 years old respondents to the Voice of Experience survey would change jobs for the right role, but amongst those who indicated that they have experienced age discrimination at their current workplace, this proportion jumps to 75%.
Despite this, PwC reports that only 8% of organisations include age as part either their DEI strategy or as a pillar in their employer brand proposition.
It seems that age remains the last socially acceptable form of prejudice in Australia, never more so than in the workplace.
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