Australia’s Aging Workforce
The ageing of Australia’s workforce is one of businesses’ major emerging challenges. By 2044-45 it is estimated that 25% of Australians will be aged 65 years or over, which is approximately double the present population.
Additionally, over the last decade the average age of the Australian workforce (especially the full-time workforce) has been increasing faster than the average age of the general population (Department of Parliamentary Services, 2005).
In September 2010 there were approximately 5.8 million adults not in the labour force. Over 3.3 million, or 57% of these people were aged 55 years and over (The Australian Institute for Social Research, 2008). As more people move into older age groups, overall workforce participation rates are predicted to substantially drop. Some estimates project that there will be a loss of one third of the workforce over the next two decades to retirement, redundancy and illness/disability (The Australian Institute for Social Research, 2008).
By early next decade labour demand is expected to exceed supply (Productivity Commission, 2005).