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Section head
Age and gender
The Talent Pool
Older workers are part of the talent pool now…
- There are currently 7.5 million men and 9 million women over the age of 55 in the UK. That is 26% and 29% of the total male and female population respectively.
- In the European Union between 2010 and 2030 there will be a 16% drop in people aged 25 and 39, and a 16% rise in people over 55.
This is because we are all living longer…
- Life expectancy increases by one year approximately every four years
- In future, it will not be uncommon for there to be four surviving generations of the same family
And having fewer children…
- In almost all EU countries, fertility is below the population replacement level. In some southern and eastern European countries, it is less than 1.3 children per woman.
And this trend will change the age profile of the workforce…
- One in five people in the world will be over 60 by 2050, compared to one in 12 in 1950
- By 2010, the pool of workers aged 35-44 is expected to shrink by 27% in Germany, by 19% in the UK, and by 9% in Italy.
- The expected drop in the working age population means the demographic “dependency ratio” (the ratio those over and under working age to the working age population) will increase from 49% in 2005 to 66% in 2030.
But employers are still under utilising older workers, particularly women…
- The employment rate of men in the UK aged 50 and over was 44% in 2004, for women it was 31%. The European objective is to raise this to 50%.
- For those aged 50-65 the employment rate was 72% for men and 68% for women%.
- If older workers lose their job they find it harder to get back into work :[1]
- Nearly a third of people in Britain are happy to work until they are 70. More people in their 60s are happy to work until they are 70 than any other group[2]
The Market
Older people are a significant market…
- In the UK, over-50s account for 80% of personal wealth, 60% of its savings and 40% of its disposable income. (Older Richer Wiser conference 2006).
- By 2020, over half the population will be 50+. More than 80% of mature consumers feel that most advertising is irrelevant to them.2
- In Germany, over-50s have disposable incomes per head that are about a tenth above the national average. They book 55% of winter holidays. There are at least 230 travel companies providing holidays explicitly for mature holidaymakers.
Sources:
Office for National Statistics,
United Nations,
European Commission,
The Conference Board,
Employers Forum on Age,
Financial Times
Some facts about older workers
Old and grumpy…or loyal and wise?
- Older workers are less likely to change jobs than younger ones.
- Laboratory-based research suggests that between the ages of 20 and 70 there is a negligible decline in people’s physical and mental ability to perform everyday tasks, and that variations within age groups far exceed those between age groups. [3]
- Research has shown that staff turnover among 50-59 year olds is half that of the overall average.[4]
- Australian research had found that the net benefit of employing someone over 45 compared to someone younger is nearly A$2,000 a year. Longer job tenure in this age group increases the return on recruitment and training costs. The benefits outweigh higher absence and work injury costs. [5]
- Planning and verbal abilities peak in people's 50s and 60s; only in their 70s do selective abilities decline. [6]
- Physical capacity deteriorates with age, but psychological capacity does not. "Social skills get better - getting on with people, understanding people, working together and accepting differences." [7]
[1] Social Trends 36 Office of National Statistics
[2] Employers Forum on Age survey 2005, www.efa.org.uk
[3] HSBC global forum on ageing and retirement
[4] HSBC global forum on ageing and retirement
[5] Business, Work and Ageing, 2001: www.businessworkageing.org
[6] Louise Rolland, professor of ageing and work at Australia's Swinburne University, quoted in Financial Times, July 5, 2006.
[7] (Prof Juhani Ilmarinen of the Finnish Institute of Occupational Health, quoted in Financial Times July 5, 2005).
