As global demographics shift, one undeniable trend is the ageing population.
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.
From an employment perspective, the biggest issue facing organisations is arguably the last socially acceptable form of prejudice in Australian workplaces – age discrimination.
According to AgeInc’s Voice of Experience research, undertaken amongst 1,150 Australians aged 50+, just over 53% of Australians over the age of 50 have experienced discrimination, solely based of their age, when applying for a new job and the vast majority of those were in their early 50s.
This demographic change presents both challenge and opportunity for the recruitment industry and understanding and adapting to these trends will be essential for recruiters and employers alike.
‘Age discrimination inherently reduces the available talent pool, but when combined with the issue of an ageing population, it becomes a real business risk for the recruitment industry’, says Lesley Horsburgh, CEO of APSCo. ‘As the population ages, so the percentage of the population aged 35 – 50 falls, putting more pressure on recruiters to fill shortlists.’
So how can recruiters maximise the benefit of this changing landscape?
As people live longer and healthier lives, many people are choosing to work beyond the traditional retirement age. For the recruitment industry, this should mean an increased pool of experienced candidates with valuable knowledge, wisdom and leadership skills. Recruiters who can work with their clients to help them embrace older workers will benefit from their expertise, mentorship, and reliability.
In addition, as the economy improves and the labour market tightens, Australia is likely to see a resurgence in skill gaps, particularly in sectors requiring specialised expertise. People aged 50+, who are really only mid-career, can help bridge these gaps, providing continuity and reducing the cost and time required to train new employees.
However, to maximise these opportunities there are a few challenges for both recruiters and their clients, not least overcoming age bias.
Despite the benefits of hiring older workers, ageism remains a significant barrier in the recruitment process. Recruiters must actively combat stereotypes, such as assumptions about older workers’ adaptability or technological skills. Inclusive hiring practices and helping to educate clients on the potential of people aged 50+, will help shift these perceptions.
Many job descriptions are inadvertently biased toward younger candidates, emphasising traits like ‘fast-paced’ or ‘tech-savvy’ without considering how these terms might exclude older applicants. Recruiters should audit job postings and advise employers on inclusive language and criteria that focus on skills rather than age.
With the change in the traditional concept of retirement comes opportunity. Many older workers seek flexible work arrangements, such as part-time roles, consultancy positions, or full-time remote work. Recruiters can fill more roles by helping clients to adapt and by promoting roles that cater to these preferences whilst educating both their teams and their clients, on the benefits of flexible work arrangements.
Finally, helping employers position themselves as age-friendly can attract top talent from all age groups. This might involve advising on workplace adaptations, such as ergonomic improvements or flexible scheduling, to ensure older employees thrive.
The ageing population is reshaping the workforce and, consequently, the recruitment industry. While challenges like ageism and skills mismatches exist, the opportunities for agencies to innovate and lead the way in inclusive hiring are immense. By embracing this shift, recruiters can not only support older workers but also help employers build stronger, more diverse teams that are better prepared for the future.
‘The recruitment industry has an important role to play in dismantling age-related barriers and fostering a workplace culture that values contributions from all generations,’ said Horsburgh. ‘Adaptation isn’t just an opportunity, or something altruistic, it’s a business necessity which will become more and more apparent as our population ages.’
First published by APSCo at: https://au.apsco.org/resources/the-impact-of-our-ageing-population-on-the-recruitment-industry-92238195913