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 business 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. 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, this will reduce participation amongst 35 – 50-year-olds by 8.4% and increase participation amongst 50 – 59-year-olds by 15%.
If Australian businesses don’t address age discrimination sooner rather than later, then both recruitment and retention will continue to suffer.
53% of 50 – 54 years old respondents to the Voice of Experience 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%.
The Australian HR Institute (AHRI) suggests that businesses fall into one of 3 categories of maturity when it comes to managing diversity, including reduced age discrimination. These are:
- Level One organisations – those that ensure they at least comply with current Australian legislation, in context, the Age Discrimination Act, 2004.
- Level Two organisations – those that have established DE&I policies and frameworks and have established organisation wide buy in to combat discrimination.
- Level Three organisation – those that have become leaders in diversity and inclusion and are benefitting from the improved culture that follows their commitment to inclusion.