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Changing demographics could force Australia to rethink its workforce

  • June 11 2021
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Changing demographics could force Australia to rethink its workforce

By Cameron Micallef
June 11 2021

Australia’s ageing population is continuing to put pressure on the workforce, with the country needing to rethink its strategies, new research has revealed.

Changing demographics could force Australia to rethink its workforce

Changing demographics could force Australia to rethink its workforce

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  • June 11 2021
  • Share

Australia’s ageing population is continuing to put pressure on the workforce, with the country needing to rethink its strategies, new research has revealed.

Changing demographics could force Australia to rethink its workforce

Australia’s workforce is ageing, with data revealing the number of workers aged 55+ has more than doubled from 9 per cent in 1991 to 19 per cent in 2021.

This trend is likely to continue with older workers now predicted to make up 40 per cent of the national workforce by 2050.

This changing demographic is putting pressure on notion of hiring younger workers. 

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In fact, a study released by ARC Centre of Excellence in Population Ageing Research (CEPAR) said the demographic change is delivering a large talent pool of older people who will be healthier and more educated than ever before.

“Older Australians are a critical part of the workforce and economy. More mature workers could increase economic prosperity,” lead author and economist Rafal Chomik said.

The economist opined that given the right opportunities, older workers could offset the adverse economic impacts of population ageing.

“If they are to thrive and prosper in the labour market, then Australia – compared to other countries – needs to do better to dismantle remaining barriers related to health, care, training, discrimination and work conditions, and also to ensure that employers have the right strategies to recruit, deploy and retain them.

"There’s now good research pointing the way forward,” Mr Chomik continued.

How employers can respond

According to the study, employers can do a better job managing a multigenerational workforce through better recruitment, deployment and retention policies of key personal.

“For organisations, managing mature workers well brings productivity benefits. For individuals, high-quality work fosters successful ageing and the fulfilment of caring responsibilities. It’s a win-win,” said Sharon Parker, a John Curtin Distinguished Professor in Organisational Behaviour.

Changing demographics could force Australia to rethink its workforce
Changing demographics could force Australia to rethink its workforce
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About the author

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Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

About the author

author image
Cameron Micallef

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

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