Study Finds 150 Million Jobs to Shift to Older Workers by 2030
A new global study conducted by Bain & Company reveals that a staggering 150 million jobs will transition to workers over the age of 55 by 2030. The study highlights a significant shift in the workforce composition and predicts that older and experienced individuals will make up more than a quarter of the workforce in the Group of Seven countries by 2031.
Andrew Schwedel, a partner at Bain & Company, describes this as a “massive shift” and points out that Japan is already leading the way with nearly 40% of its workforce being over the age of 55. Europe and the United States are not far behind, with a range of 25 to 30% of their workforce falling within this age group.
However, the aging workforce trend is not limited to developed markets alone. The study also reveals that China’s elderly population aged 65 and older is expected to double by 2050. This shift is attributed to factors such as lower fertility rates, longer education periods, and a reversal of the long-term trend toward earlier retirement.
Interestingly, the study also notes the recent “unretirement” trend, where retirees are rejoining the labor force due to a hot job market, rising inflation, and reduced COVID-19-related health risks. The spike in retirements observed during the early stages of the pandemic is now being referred to as a “Great Sabbatical” by Bain.
To address the talent shortage reported by many companies, Schwedel advises businesses to take proactive measures rather than waiting for government policies to be implemented. He emphasizes the importance of implementing targeted interventions that support older workers. However, the study highlights that only about 4% of companies globally have committed to programs that aid in integrating older workers or supporting a multigenerational workforce.
Understanding the motivations of older workers is crucial in attracting and retaining them. The study reveals that younger workers are primarily motivated by good compensation, while older workers prioritize doing interesting work and having autonomy and flexibility. Some older workers focus on mastering their craft, while others find reward in making a positive social impact.
According to Schwedel, these differing motivations call for tailored approaches when appealing to younger and older workers. It is essential for companies to design workplace experiences that align with the motivations of older workers and equip them with the necessary skills for the future. The study found that 22% of respondents aged 55 to 64 expressed a need for more tech skills.
“To take advantage of training programs, companies need to design programs that appeal to older workers’ pursuit of interesting work and encourage supervisors to motivate participation across all age groups,” the press release states.
As the demographics of the workforce continue to evolve, companies that invest in recruiting, retaining, reskilling, and respecting the strengths of older workers will position themselves for success. By understanding the motivations and needs of this group, organizations can create inclusive work environments that harness the experience and expertise of older workers while ensuring their ongoing growth and development.