Australia: Boosting Older Workers Important Feature of Third Intergenerational Report

The Australian Government had issued the Third InterGenerational Report addressing many issues as it looks towards 2050, by which time the number of people aged 65 to 84 years will have more than doubled and the number of people aged 85 and over will have more than quadrupled.

In his speech introducing the report, Wayne Swan, the Treasurer of the Commonwealth, focused on areas with respect to the aging workforce: increasing productivity and increasing participation. Responding to declining productivity, Swan said "And the best way to grow the economy is to maintain our focus on productivity, on investing in skills and infrastructure--nation building, the Education Revolution and regulatory and tax reform to underpin productivity growth in the decades to come." However, acknowledging that this is not enough, Swan said that "we need to keep encouraging workforce participation."

There has been a tendency in previous reports to present the ageing of the population only as a problem to be solved.

I prefer to focus on how we can best harness the life experiences and intellectual capital of older Australians. These are Australians who have already made a massive contribution to our nation. Their experience is invaluable.

Many will choose to leave the workforce, and enjoy a well-earned retirement, for a variety of reasons. But if they want to work they should be welcomed into the workforce.

Australia has a lower rate of mature age participation than other comparable countries – like the US, UK, Canada and New Zealand. There is considerable room for improvement in this area.

Groups like National Seniors Australia – and it's good to see Everald Compton here today – have identified a range of issues that we need to consider – including raising community awareness, encouraging skills development and promoting healthy workplaces.

If we can remove the obstacles for older Australians who want to work, we not only improve the quality of their life but we also strengthen the economy. That's what our Budget changes to the work bonus were all about.

The choice for older Australians to stay in or leave the workforce should be just that – a choice, not something forced on them by prejudice or bad policy.

Sources: Treasurer of the Commonwealth of Australia Speech (February 1, 2010); The Australian "Inconvenient truth on ageing" (February 4, 2010)

Australia: Government Contemplating Tax Changes to Encourage Older Workers To Remain Employed

According to The Australian, one result of a government review of taxes could be a lower marginal rate for older workers as an incentive to stay in their jobs. Speaking at a tax conference in Sydney, Ken Henry, chairman of the tax review, told attendees that "[o]lder people are less likely to be in the workforce, due to retirement or working less hours. . . . Marginal tax rates might need to be adjusted over time to ensure they reflect the changing abilities and propensities to work of different cohorts at different times in their lives."

The government's thinking is that taxes would make a bigger difference to the number of older workers deciding to remain in the workforce than it would for people of prime working age, who were likely to stay employed in any case.

Source: The Australian "Tax breaks for older workers" (January 22, 2010)

Australia: Study Suggests Blue Collar Workers More Likely To Delay Retiremement

According to news reports, researchers report that Australian baby boomers' expected retirement age is now reaching 64.3 years and that it is blue-collar boomers--more likely to struggle with the physical demands of working into their late 60s than white-collar workers--who are bumping up the expected retirement age. According to a paper "Which of Australia’s Baby boomers expect to delay their retirement? An occupational overview" by University of Tasmania social researchers Natalie Jackson and Maggie Walter to be presented on July 9, "Professionals and Associate Professionals--many of whom hold so-called "critical skills" which are central to the functioning of many businesses, organisations and departments--have the youngest expected retirement ages, while Labourers and Production/Transport Workers have the oldest."

In comparing expected and preferred retirement ages, Jackson and Walter find that the gap between the two is generally bigger for blue-collar than office workers, with "insufficient financial resources to support retirement" cited as the main reason. For example, tradespeople in the automotive sector expect to retire at a median age of 66.1 years, but their preferred age of retirement is 58.3.

Overall, the study shows a rapid rate of change in the expectations of Australian workers towards retirement. "As recently as 1997, average age of retirement was 58 for males and 41 for females," it notes. "Our overall finding is of a median expected retirement age of 64.3 years for workers aged 40-59 in 2006."

Source: The Australian "Baby boomers ready to work longer" (June 1, 2009)

Australia: Economic Conditions Forcing Older Workers to Defer Retirement

According to news reports, research conducted by Rice Warner indicates that deteriorating financial conditions will force 40,000 retirees in Australia to defer retirement and move into part-time work and others who retired since 2007 will return to the workforce.

Writing in The Australian, Adele Ferguson also says that "seniors groups believe the deterioration in retirement savings over the past year will force the Rudd Government to scale back the way it calculates earnings on retirees' investments."

Sources: Smart Company "40,000 retirees to shelve retirement plans – here’s how you can benefit" (January 5, 2009); The Australian "40,000 retirees forced to keep working because of economic downturn" (January 3, 2009)

Australia: Government Acts To Encourage Small Businesses To Retain Older Workers

Australia's Department of Consumer and Employment Protection and the Small Business Development Corporation have engaged in a process to encourage Western Australian business to employ mature age workers as a way to improve performance and boost the bottom line. Through publication of "Don’t rule out mature age workers," will help small employers struggling to compete with large enterprises for skilled labor.

See also the Department of Commerce site Mature age employment for other information for employers and employees.

Source: Department of Consumer Media Statement (December 16, 2008)

Australia: Businesses Told to End Ageist Practices, Build Skills Training for Older Workers

According to Fran Ferrier, a researcher at Monash University's Centre for the Economics of Education and Training (CEET), if the Australian economy as a whole is to avoid a mass exodus of valuable human capital, businesses will need to be flexible and provide effective skills development for older workers. "There are now few programs specifically for this group and older workers face barriers to participation including ageist employer attitudes."

While the number of people aged 45 to 64 in the workforce has grown substantially, more than 40% of Australians still leave the workforce by age 55 and 80% by age 65, and only 5% are still working at the age of 70. Ferrer says that a key issue is skills: "helping existing workers to update and extend their skills encourages them to keep working."

Ferrer cited research she conducted at CEET with Gerald Burke and Chris Selby Smith to point out that businesses that take action have much to gain. Seven case studies discussed in the study--"Skills development for a diverse older workforce"--of at-work and community-run skills development programs run for, or with a high participation rate, of older people, identified benefits to both the businesses and the individuals involved.

Source: My Small Business"New tricks, not harder ones" (August 14, 2008)

Australia: Older Workers Healthier than Non-working Peers

According to an analysis of the 2004–05 National Health Survey by the Australian Bureau of Statistics, older workers had lower rates of heart disease, diabetes, obesity and arthritis than their non working peers. "Health of Mature Age Workers in Australia: A Snapshot, 2004-05" shows that 8 in 10 workers between 45-74 years had a chronic health condition such as cardiovascular disease, diabetes or obesity, compared with 9 in 10 of the non-working population.

Other findings included that mature age workers in capital cities (77%) were less likely to have a chronic condition than those outside of the capitals (83%), and that even with a major health condition, 56% of mature age workers assessed their health as very good or excellent, compared with 31% of those who were not working.

Source: Australian Bureau of Statistics Media Release (July 29, 2008)

Australia: "Mature Workers Mean Business" Campaign Launched

Australia's Human Rights and Equal Opportunity Commission (HREOC) has launched a new community education campaign aimed at busting the myths and stereotypes about mature age workers. Under the rubric of "Mature workers mean business," the HREOC will use a range of print advertisements and web-based material to highlight the benefits of mature age workers and to address discrimination in this area.

According to Federal Commissioner responsible for Age Discrimination Elizabeth Broderick, many older participants in a recent national tour raised age discrimination as a barrier to full and equal participation in the workplace and many other aspects of life.

"Some people told me that ageist assumptions and attitudes heavily impacted on their ability to find meaningful work, including misconceptions about being able adapt to change or wanting work at senior levels," said Ms Broderick. "Others recounted the barriers they faced in other areas of life, such as accessing public spaces or being awarded driver’s licences."

HREOC has created a Mature Workers Mean Business website, which, among other things, showcases stories from the workplace featuring older workers and their employers, debunks common myths about older workers, and offers strategies to attract and retain mature workers.

Source: Human Rights and Equal Opportunity Commission Media Release (July 7, 2008)

Australia: Minister Discusses Proposals to Raise Retirement Age

Premier Morris Iemma of New South Wales, in the runup to the 2020 Future Summit in Canberra hoped to raise the issue of the potential for lifting the official retirement age. The state of New South Wales is pushing for the retirement age to be lifted because of fears of a massive financial burden. While NSW Minister for Aging, Kristina Keneally has denied that there will be an increase in the age at which one is entitled to the age pension, currently 60 for women and 65 for men, Iemma said that the 30-year-olds of today are looking to have a retirement that will last 20 to 30 years, and it is due to this that a plan must be looked at to deal with the demographic challenge as well as the financial impact.

Source: Post Macquarie News "Keep working, says govt" (April 21, 2008); Scopical "Retirement age could be lifted says Iemma" (April 18, 2008)

Research: Aging Workforce Requires Business to Rethink Working Lives

Early research into the effects of an extended working life and the challenges and opportunities that an older workforce will generate suggests that--in terms of job performance, wellbeing and skills--older workers are a much less homogenous group than younger workers. According to Professor Philip Taylor, director of the Business, Work and Ageing Centre for Research at Swinburne University of Technology, there is an increasing variation in people’s abilities as they get older and management may need to hink in terms of preparing workers when they are younger, for a longer working life.

"Policy around ageing workers needs to be about maintaining the ‘work ability’ of people throughout their life-course--not just once they are older," Professor Taylor says. "It’s about life-long learning and about how factors such as job design, work environment and skills training determine the condition in which workers arrive at the age of 50."

Among other things, Taylor says that the assumption that older workers are not interested in, or capable of, further training, is baseless, but there is evidence that "older workers prefer a different style of training than younger workers. For instance, they prefer hands-on practical training rather than classroom-style training."

Professor Taylor says another major issue for older workers is a sense of exclusion from the workplace. "Our research shows that older workers often feel they are being pushed out by not being invited to take part in training, meetings or other workplace events." This will become an increasing issue as more workers take advantage of transition-to-retirement arrangements that allow them to work part-time. "Part-time work is often not seen as real work. Managers need to be re-educated to respect different kinds of working arrangements and accept that older workers have a great deal to contribute to the workplace."

Source: Swinburne Magazine "Longer work life needs management re-think" (March 2008)

Also, see Philip Taylor (Editor), Ageing Labour Forces: Promises and Prospects (2008)

Australia: More Workers Keep Working after 65

According to an analysis of recent Australian Bureau of Statistics releases, the number of older people working beyond 65 has jumped by almost half in three years, perhaps foreshadowing a landmark change in Australians' attitudes to retirement. Writing for The Age, Tim Colebatch suggests that having over 250,000 people staying in the workforce after reaching the traditional retirement age might indicate that employers battling a tight labor market are throwing retirement ages out the window.

Colebatch writes that the shift in slightly younger workers may be even more dramatic. In 2007, almost half of those in their early 60's were working, up from one in three a decade ago, and barely one in four a generation ago.

Source: The Age "Older workers turn backs on retirement" (March 26, 2008)

Australia: Survey Suggests Older Workers the Key to Growth

Workers aged 55 and older, not generation Y, appear to be the answer to the ongoing skills and labor shortage for Australian employers, according to the results of research by Econtech commissioned by Mercer Consulting. Accordingly, employers should shift their focus from young to old, and particularly older women, to maintain productivity.

Specifically, Mercer reports by 2012, workers in the labor force aged 55+ will increase by 14% while workers aged 25-54 will increase by only 5%. In addition, women aged 45+ will increase by 12% while the number of men in the same age group will increase by only 6%.

According to Head of Mercer’s retirement business, Mr Tim Jenkins, employers--particularly in industries facing increased employment demand--"have to hold onto older workers about to exit the workforce.” In addition, he said:

Australian employers have to re-define what the average daily and weekly job looks like and how it is remunerated in order to hold onto older workers, maintain productivity and keep downward pressure on wages that, according to our research, are forecast to rise at an average annual rate of 4.2% between now and 2012.

On the practical level, he posed a number of questions to employers such as "how many jobs really need to be full-time, all of the time? How many part-time workers are needed to deliver current and future productivity requirements? How do you fill entry level jobs when the available labour force is dominated by experienced 55+ workers?" Employers have to change the stigma around part-time work not equating to a career or a promotion, and "employers are going to have to create more part-time roles as career roles."

Source: Marcer Press Release (March 5, 2008)

Australian Study Identifies Industries More Likely To Employ Older Workers with Chronic Illnesses

According to a study published in Australia, increasing rates of chronic health conditions are unlikely to have an even impact across the workforce, as the rate of employment of older workers with these conditions varies between industries. The results of the study appear in the Australian Medical Association's Medical Journal of Australia ("Where are older workers with chronic conditions employed?" ; free registration).

Using data from the 2005 National Health Survey (NHS), Deborah J Schofield, Susan L Fletcher, Arul Earnest, Megan E Passey and Rupendra N Shrestha find that, compared with the reference industry of property and business services, workers in the retail trade industry were found to be more likely to suffer from musculoskeletal conditions, while those in health and community services had higher rates of cardiovascular disease. Compared with the reference occupation group of professionals, managers and administrators were less likely to suffer neoplasms.

It is important to note that a number of the industries with significantly higher rates of chronic illness are growth industries, such as retail trade and health and community services. These two industries accounted for a quarter of the employed workforce in 2005, up from around 20% in 1990. If the chronic conditions in growth industries are work-related, rates of disease may increase in the future as these industries continue to grow. However, if they are unrelated to work, it may mean that older workers with these conditions can more readily gain employment in these industries.

According to Dr. Schofield, measures to prevent chronic health conditions may be essential to increasing future labour force participation: "Given Australia's ageing population, emerging workforce shortages, and with chronic disease affecting the majority of the workforce, measures to prevent illness may be an important strategy for increasing future labour force participation."

Source: The University of Sydney News Release (February 18, 2008)

Australia: Survey Finds Older Workers Becoming Less Loyal

According to a survey of Australian workers, 82% of workers in the 41- 55 year age range and 80% of those in the $80,000 to $99,000 salary range are seeking new employment for personal reasons. Campbell Sallabank, CEO of Linkme.com.au, which conducted the survey, says that "Job loyalty is out the window for Aussies of all ages as the Generation Y ethos of quick money, quick success and fast promotion spreads across the Aussie workplace."

Gen Y has long been recognised for their job hopping ways and little concern for employer’s interests as they ruthlessly climb to the top of the corporate ladder. Now more mature workers appear to be adopting the "me too" attitude as they join the bandwagon of career success instead of job loyalty.

Source: LinkMe.com Press Release (January 14, 2008)

Australia: Employee Engagement the Key To Keeping Mature Workers Active in Workplace

According to research from the Voice Project at the Department of Psychology at Macquarie University, higher levels of engagement may lead to increased participation rates by mature-aged workers, as engagement has been shown to be associated with positive organizational outcomes such as reduced absenteeism, higher productivity, and lower turnover rates. After surveying workers in age brackets 20-30, 30-40, 40-50, 50-60 and 60 plus, Nick Vrisakis from Voice Project said researchers found there were some significant differences. While younger workers valued career opportunities, rewards and recognition, for older workers wellness was the strongest driver of engagement over and above salary and seniority.

"These results suggest that older workers are looking for less stress in their working lives and that this may be related to the nature of the role rather than the number of hours worked. Older employees may be happy to work full-time hours if it means they can be exposed to less stress or at least maintain a sense of wellbeing. If older workers could wind down whilst continuing to work it may be that many would continue to work full-time."

In addition, the research showed that overall older workers were more satisfied, committed and had a stronger intention to stay with their organizations. As Vrisakis pointed out, this is good news for employers who are seeking to attract or retain mature-aged workers and provides incentive for other employers to do so.

Source: Macquarie University Press Release (November 14, 2007

Australia: Reactions to Proposals for Grandparent Leave

Duing a debate late in the election campaign, Workplace Relations Minister Joe Hockey said the government would introduce a law that would allow new grandparents to take unpaid leave. According to a story by Michael Edwards, reaction to the proposal (which echoed some earlier suggestions) was mixed. Thus, while demographers say it is an acknowledgement of the increasing importance of older workers, "a pensioner group says it is unlikely many people will be in a position to take the leave."

Bob Birrell from the Centre for Population and Urban Research at Monash University realized that the proposal to allow 12 months' unpaid grandparental leave had wider implications: "Because in the past we would have imagined that most grandparents would've had time on their hands, they wouldn't have been working." While Pensioners and Superannuants Association spokesman Paul Versteege says he thinks the policy is well intentioned, but unlikely to make much of an impact, Edwards notes that ANZ Bank chief economist Saul Eslake sees grandparental leave as an important aspect of social policy to encourage older workers into the economy.

Although Australia's labour force participation rate has been rising over the last few years, participation by Australians in the senior age group--that is, above 55--remains well below that in other comparable countries, such as America, Britain, Canada and New Zealand, and substantially below that of Scandinavian countries as well."

Source: ABC News "Grandparents' leave plan gets mixed response" (November 8, 2007)

Australia: Survey Shows Older Workers Not Planning To Retire Soon

News reports on the results of a Nielsen survey suggest that a growing majority of Australians aged over 55 year have no plans to retire. Specifically, the Nielsen Panorama study found 55% of all workers aged 55 to 64 in 2007 had no plans to retire in the short term, up from 43% from just last year. Furthermore, among workers aged 55 to 59 who were planning a retirement, 44% intend to go for semi-retirement, up from only 32% in 2006, with a similar shift among 60 to 64 year olds.

But Philip Taylor, director of Swinburne University's Business, Work and Ageing Centre for Research, said older workers could be staying at work for longer because they had little choice.

"We may be leaving behind the era of early retirement … it may be about the boomers aspiring to work longer, but one should also ask whether these older workers are being forced to work longer," he said. "Because the Government is rolling back the welfare state that might otherwise have supported them, they're being forced back into the labour market."

Source: The Sydney Morning Herald "Boomers ain't ready to quit workforce" (November 1, 2007); The Age "Grey is good, grey is great, grey works" (November 2, 2007)

Australia: ACT Chief Minister Exploring Grandparental Leave

As part of an effort to examine measures to attract and retain mature workers, Austrialian Capital Territory (ACT) Chief Minister Jon Stanhope has asked the ACT Commissioner for Public Administration to examine the possibility of granting public servants unpaid leave to enable grandparents to look after grandchildren up to the age of two.

Mr Stanhope said that 2005 figures from the Australian Bureau of Statistics showed that grandparents were delivering childcare services to more than 660,000 Australian children. Grandparents cared for more than half of the one-year-olds who depended on child care and almost 40% of five-year-olds.

Almost all of the childcare undertaken by grandparents was provided at no cost.

“Our ageing workforce, and our need to retain older workers for longer, means that over time we will need to provide working conditions that better suit mature-age workers,” Mr Stanhope said.

Source: ACT Chief Minister Media Release (August 27, 2007)

Other Sources: ABC News "ACT plans grandparental leave" (August 27, 2007)

Commentary: Global Economy and Early Retirement versus Working Longer

Philip Taylor, professor of employment policy at Swinburne University of Technology, offers up thoughts on why Australia has been increasing its employment of older workers, while at the same time companies in other parts of the world are continuing to offer incentives for early retirment. Thus, he contrasts positive signs that suggest that Australian business has woken up to the potential of older worker, with indications from other countries that raises the question whether "much of industry, wishing to remain globally competitive, will dare employ ageing workforces."

He concludes that a "cautious view would be that global competition will continue to reshape the contours of older workers' employment in uncertain ways. There will be some winners, but there are likely to be many losers. An adequate policy response will to encourage economic activity while recognising the need for a dignified exit."

Source: The Age "Job prospects on rise for older workers" (May 25, 2007)

Australia: Older Workers Show Flexibility, Willingness to Learn

Research conducted by Diversity Council Australia (DCA) shows that, for those mature age people not currently in the workforce, one third of all respondents--and 57% of those aged 60 years or under--would be prepared to return to work if they were offered the right job. In addition, one-third of currently employed mature age workers would relocate and more than half would consider doing further study for the right job.

DCA believes its research results are great news for employers and for Australia: “At a time of strong economic growth and labour shortages, there is an exciting pool of talent, ready, willing and able to work,” said [DCA Managing Director, Ms Rohan] Squirchuk. “This research combined with DCA’s expertise in workplace diversity gives employers valuable information about how to better attract and retain talent in a tight labour market.”

Key results of the project--"Grey Matters: Engaging Mature Age Workers"--include:

• Prior to retiring, the average hours mature-age people worked was 40 hours, while they would have preferred to work 35.
• Employed mature-age workers indicated their top two ideal employment practices approaching retirement would involve: flexibility in start and finish times, and phased retirement
• Around 80% of mature-age people not currently employed said working for an organisation that was supportive of their learning and development needs and careers was important or very important in influencing their decision to remain in the workplace.
• Some 97% of mature-age people indicated working for an organisation that was supportive of older workers was important or very important in influencing their decision to remain in the workplace.

Source: Diversity Council Australia Media Release (May 25, 2007)

Australia: ACT Launches Project To Encourage Businesses To Hire Older Workers

Australian Capital Territory (ACT) Chief Minister Jon Stanhope and Chris Peters of the ACT and Region Chamber of Commerce and Industry have launched a "Silver Lining" project to educate employers about the benefits of hiring and retaining seniors in their businesses. In particular, with the baby boomer generation nearing retirement age and the generations coming after being considerably smaller, business should not shun seniors from the workforce and they should be educated that common myths about older works are untrue.

Mr Stanhope said:

“Research shows that workers aged 55 and over are the most motivated and engaged. Older workers are known for their reliability and stability, with research showing that they stay in a job 2.4 times longer than a younger person.

“Given the high cost of staff turnover this level of stability alone represents a great opportunity for business.”

Source: Australian Capital Territory Media Release (May 8, 2007)

Australia: Second Intergenerational Report Released

The Treasurer of Australia has released Australia’s second Intergenerational Report, focusing on the implications of demographic change for economic growth and assessing the financial implications of continuing current policies and trends over the next four decades. Over the next 40 years, the ageing of the population (specifically the impact of relatively fewer people of traditional working age) is projected to slow economic growth, with real GDP per person rising more slowly than in the past 40 years, and, at the same time, spending pressures in areas such as health, age pensions, and aged care are projected to rise, due to demographic and other factors.

Among manyt other things, the report shows that the rate of mature-aged men still in the workforce rose from 60% in 1997 to more than 66% in 2005, slightly higher than the OECD average that year. The participation rate for people of traditional working age (15-64 years) is projected to rise from 76.2% in 2006-07 to 78.1% by 2046-47, mainly due to an increase in participation rates of older workers (aged 55-64 years).

Decisions by individuals to participate in the labour market are influenced by their capabilities, the incentives in government programmes and the flexibility of the labour market to match job seekers with employment opportunities and pay. Spending programmes which provide income support and the personal tax system need to have appropriate incentives to provide a return for working and to provide support, including in times of unemployment or situations of disability. The capabilities of people can be improved through better health and education. The flexibility of the labour market, the range of jobs, qualifications, hours and rates of pay also influence people’s decisions about labour force participation. Continued attention to all of these influences, as well as the maintenance of a strong macroeconomy that maximises employment opportunities, will be necessary.

Source: The Australian Government Treasury Intergenerational Report Home (April 2, 2007)

Additional Source: The Age "Retirement no option for generation of older workers" (April 3, 2007)

Global Aging and Retirement: AARP Releases Country Surveys of Opinon Leaders

In conjunction with a conference on "Reinventing Retirement Asia: Enhancing The Opportunities of Aging" held in Tokyo March 15-16, AARP released a survey of opinion leaders in Asia and Oceania, which reveals that most believe their countries are ill prepared to deal with the challenges of an aging population. Although the survey report covers several aspects of aging and society, two core focuses were on older workers and retirement.

AARP's report--"Aging in Asia and Oceania: AARP Multinational Survey of Opinion Leaders 2006"--was prepared by Princeton Survey Research Associates International thrugh a survey of opinion leaders in the United States and in seven countries in Asia and Oceania. The survey was designed to increase AARP’s knowledge of aging issues and attitudes in key Asian markets and to compare attitudes and policies towards aging in the US to attitudes and policies in Asian and Oceanian societies.

According to the overall summary, opinion leaders vary as to the age at which a worker becomes an "older" worker:

Averaging 60 years of age among all opinion leaders interviewed, the average age at which opinion leaders would consider someone an older worker varies somewhat from country to country, ranging from a high of age 66 in Japan to a low of age 55 in Australia. Half of opinion leaders say that the transition to becoming an older worker occurs some time between the ages of 60 and 69.

Other key findings show that opinion leaders perceive older workers as wise, respected, and productive, but that "businesses do not see older people as a
potential source of productive labor and employers are not well prepared for a future workforce comprised of more older workers." Opinion leaders also say that it is a responsibility to society to address older worker issues, older workers should be accommodated, the mid-60's is an appropriate time to retire, and that there should not be mandatory retirement.

In addition to the full report, AARP has issued specific country reports for the United States and for these Asian or Oceanian countries:

• Australia
• China
• India
• Japan
• New Zealand
• Singapore
• South Korea

Source: AARP News Release (March 14, 2007)

Commentary: Early Retirement Trend Reversing in Australia

Ross Gittins, commenting in the Sydney Morning Herald on the sharp increase in the number of older workers staying in employment, observes that the rise has been caused by men staying in full-time jobs--that is, it represents "men staying in employment and not retiring, rather than men who'd formerly retired being enticed back into the workforce." Women is a different story, as participation by women aged 55 to 64 has been constantly rising as part of the general trend for women to return to or stay in the workforce.

In looking at various explanations for the reversal, Gittins notes that, in earlier times, a lot of the supposed early retirement was involuntary, while more recently there's been a lot fewer involuntary departures from the workforce. In addition, he notes that "the now ageing baby boomers are healthier and better educated than the generation that preceded them" so that "they may have higher expectations for retired comfort than could be satisfied by just the proceeds of the age pension." Finally, while he believes that prejudice against older workers is dissipating rapidly, this is "less because of the sermons than because of the shortage of experienced, steady workers. Market forces strike again."

Source: Sydney Morning Herald "Another myth bites the dust" (February 7, 2007)

Australia: Researcher Looking at Improving Retention of Older Workers

According to Megan Tones--a Queensland University of Technology PhD education researcher who is researching the patterns of learning and development amongst older workers and the type of organisational support that might improve retention rates, Australia's economy cannot afford to have large numbers of older people not working. However, Australians can't wait to leave the workforce once they hit 50 causing a looming labour shortage and the dashing of government hopes that people will work into their 70s.

"It is not just the labour shortage and cost of paying pensions to people for 30 years or more, it is also the fact that people who are engaged in enjoyable work have fewer physical and mental health problems thus reducing health spending," Ms Tones said.

She suggests that the hardest-hit sectors will be education, health and community services, mining, agricultural, forestry and fishing, utilities and transport. Among the reasons for the exodus of older workers she cites are ageist and unsupportive workplaces, easy access to income support through private pensions from 55 onwards, and "quite lax" requirements for the disability support pensions.

Source: Queensland University of Technology Press Release (January 4, 2007)

Australia: Employers Must Address Health and Safety Issues with Aging Workers

Speaking at the 2006 Sydney Safety Show, Product Development Manager, CGU Safety and Risk Services, Angela Micic told listeners that as Australia faces a growing number of older people working and remaining in the workforce, employers must address the OHS problems this trend presents and implement risk management strategies.

A number of prevention strategies are available to employees to minimise risk associated with the ageing workforce in Australia. Risk management strategies will vary depending on jurisdictional occupational health and safety and workers compensation requirements in conjunction with workplace and workplace requirements. Employers need to ensure that work organisation and job design is suitable for all workers, with attention to older workers. The implementation of some of the preventative strategies may lead to improvements in OHS, reduction in injuries and claims and ultimately an increase in productivity and retention.

Source: Ferret.com "OHS issues facing an ageing population" (Decenber 20, 2006)

Australia: Health Research Finds Older Workers More Productive

According to research conducted by Australian Health Management, workers aged 55 or above are more productive than under-35s because they suffer less depression and headaches, and have no childcare problems. While the younger group had an average 19% reduction in productivity due to childcare responsibilities, allergies, depression, headaches, and asthma, workers aged 55 or more showed reduced productivity of only 13%.

Australian Health Management called for health funds and employers to pay greater attention to the value of reducing health risk factors such as weight, stress and smoking. As reported by Matthew Franklin:

The company produced dramatic figures showing that after it enrolled nearly 4000 of its members in a six-month health program, the average claim in the subsequent six months tumbled from $3017 to $1761.

"You can't stop people ageing," said AHM chief executive Dan Hook. "But you can get people to address their risks ... Risk factors are the sleeper in the health debate."

Source: The Australian "Older workers more productive" (November 14, 2006)

Survey: Kelly Global Workforce Index Reports on Ageism Around the World

Kelly Services has released results of the Kelly Global Workforce Index, a survey of over 70,000 workers in 28 countries about their experiences in workforce discrimination on account of age (both young and old). For example, in Australia, the Index reports that almost half of all Australians believe they have been discriminated against in applying for a job, with older Australians now facing the greatest prejudice. Specifically, 48% of workers aged 45 or older felt they had been discriminated against on the basis of their age. In India, age also was the major source of prejudice, cited by 16% of the respondents there.

According to Kelly Services Sales & Operations Director (New Zealand), Steve Kennedy,

“Ageism has overtaken ethnicity and sexism in many areas as the greatest source of discrimination in employment. At a time when we face an ageing population and skills shortages, many organisations are putting obstacles in the way of hiring older people. This can be devastating for individuals but it is also means many organisations are shutting off an important source of talent and diversity. Organisations that don’t address these issues directly can do themselves considerable damage and can suffer costs both direct and indirect. They may suffer high staff turnover, absenteeism, poor morale, low productivity, poor reputation, and also the possibility of civil claims and penalties arising from breach of anti discrimination laws.”

The Kelly Global Workforce Survey Results are available (with free registration).

Source: News Releases Australia (October 2006); Canada;
India (October 19, 2006): New Zealand (October 17, 2006); Spain (October 24, 2006); United Kingdom (October 24, 2006)

Australia: Government Announces Skills Program that Will Benefit Older Workers

According to press reports, Australian Prime Minister John Howard is announcing a skills package program that, among other things, will let less skilled older workers be eligible for a $3000 education voucher.

Source: Melbourne Herald Sun "$3000 vouchers to boost jobs" (October 12, 2006)

Australia: "Stubborn Streak" Keeps Older Workers Working?

According to an article by Cameron Stewart, as Australia gets greyer and the baby boomer generation enters its twilight years, jobs are not shifting as people once thought they would: "The grey-haired warriors are staying put in their jobs, shutting out younger wannabes and declaring that retirement is for wimps."

"The Prime Minister has set the example, he is leading the pack," says Allan McLean, director of the National Ageing Research Institute. "We now know that stopping work suddenly is bad for you. It can kill you."

Among other things, Stewart also cites the results of a survey of retirement intentions released early in 2006 by AXA Australia taht found that almost two-thirds of baby boomers are planning to have some form of paid job in their retirement years and that today's average retirement age of 59 is set to increase, with most people expecting to retire at 62 or older.

Source: The Australian"Retiring for wimps, say grey warriors" (August 21 2006)

Australia: Jobsharing Offered as Solution for Aging Workforce

A report issued by the Hudson consulting firm suggests that, with Australia’s current skills shortage and the rapid emergence of an ageing workforce, flexible working solutions such as jobsharing will be key to attracting and retaining employees. According to their research, an overwhelming 88% of employers providing a jobshare program believe it has improved their ability to attract and retain employees. Key findings from the report show that:

• Only 40% of Australian employers currently provide a jobshare program to staff;
• 52% of employers and 73% of job seekers surveyed would consider jobsharing as a work option, now or in the future;
• 72% of those employers who would not consider jobsharing believed their role wouldn’t be suitable for sharing; 20% did not know how jobsharing could be applied in their personal circumstance; 8% said they have seen jobsharing poorly implemented in the past

According to Vilma Faoro, National Practice Leader for Hudson JobShare, “[i]t is critical for employers to embrace flexible work options in order to attract and retain talent from a broader talent pool, such as return-to-work parents and mature-age workers transitioning into retirement."

Source: News Release Hudson (February 22, 2006)

Australia: Prime Minister Calls for Workers To Delay Retirement

Older Australians need to stay in the workforce, but bosses and employees may have to compromise on hours of work and pay, Prime Minister John Howard says. Addressing an employer group at "The Workforce Tomorrow Industry Breakfast," Howard said that "[t]he bad news is that we are all getting older and as a population Australia is ageing. We are living longer in a healthier fashion and we are therefore facing a significant demographic challenge" and that far too many of the people between 55 and 65 leave the workforce far too early.

Howard said mature workers might find themselves reporting to much younger bosses or having to accept a rearrangement of remuneration structures. In addition, they should be prepared to sign up to part-time work, and people currently out of the workforce on disability pensions needed to be enticed back to work.

According to the Australian Associated Press article on the speech, opposition workforce participation spokeswoman Penny Wong said Mr Howard was acknowledging his government was presiding over a major skills crisis. "But you can't just talk about getting jobs for mature workers and people with a disability--you actually need to invest in their skills so they have the skills an employer needs," she said. "The best way the Howard government can encourage employers to hire jobless Australians is by making sure jobless Australians are ready for work.

Source: "Howard says more older workers needed" Sydney Morning Herald (February 20, 2006)

Australia: Industry Not Stepping Up To Challenge of Aging Baby Boomers

A report from ABC Melbourne says that, at a recent seminar sponsored by Monash University’s Australian Centre for Research in Employment and Work, participants were told that, "despite the Federal Government pushing for greater participation of older workers in the labour market, industry is failing to develop proactive approaches for keeping Australia’s baby boomers in the workforce." Dr Glennis Hanley, from Monash University’s Department of Management, said that "[b]usinesses need to employ the broad-based business experiences of baby boomers to foster and transfer cross-generational knowledge as a means of integrating the diverse abilities of today’s heterogeneous workplace." According to Dr Tui McKeown, also from the Department of Management, by 2020 that 50 per cent of the current workforce will have retired and "[n]o action is currently being taken to recognise the skills of older workers." Drs. Hanley and McKeown are conducting research on Will You Still Need Me, Will You Still Feed Me, When I'm 64?.

Source: ABC Melbourne November, 28, 2005

Australia: Mercer Recommends Raising Pension Age

In response to the Draft Report on "Economic Implications of an Ageing Australia" of Australia's Productivity Commission, Mercer Human Resource Consulting has recommended that the following policies be considered to alleviate some of the adverse economic implications arising from Australia’s ageing population.

• Provide a framework which encourages employers to recruit and/or retain older workers;
  
• Encourage older workers to remain in the workforce through appropriate financial incentives;
  
• Review the lack of any clear integration between superannuation benefits and eligibility for the age pension by establishing a framework that provides a clear relationship between the benefits;
  
• Bring forward the funding of the existing unfunded superannuation liabilities through a program of decreasing capital injections;
  
• Gradually increase the eligibility age for the age pension from 65 to 67;
  
• Reduce the front end taxation of superannuation, with some increases to taxes on benefits over the longer term.
  

Source: "The Mercer Response to The Productivity Commission's Draft Report 'Economic Implications of an Ageing Australia'"Mercer Human Resource Consulting (February 23, 2005)

Australia: Workers over 45 will solve the labour shortage

Drake International has issued a white paper predicting that Australia will face permanent labour shortages across many industry sectors and occupations by 2010, due to the country's ageing population. Thus, knowing how to attract older employees could mean the difference between a thriving business and an ailing one in the next decade and beyond. According to a news story:

To prepare for the future, Drake's white paper encourages business owners and managers to assess their organisation's current age profile, review recruitment and induction processes for their age-friendliness and to explore new approaches to skill development that promote retention past current retirement ages.

Source: News article from Daily Telegraph (February 15, 2005)