Older workers to fill 150M more jobs around world by 2030
NEW YORK >> A global study from Bain & Company has found that 150 million jobs will shift to workers over the age of 55 by 2030. That figure is nearly equal to the entire working population of the US. In the Group of Seven (G7) countries, Bain predicts these experienced workers will comprise a quarter of the workforce by the end of the decade — nearly 10 percentage points higher than in 2011.
This trend is most pronounced in high-income countries. In Japan, for example, workers 55 and older will approach 40% of the workforce by the end of the decade. In Italy and Germany, the number is around 30%. This shift is playing out in low- and middle-income countries as well. China’s population of individuals 65 and older is set to double by 2050, and Brazil’s proportion of workers over age 55 is creeping up to the midteens.
Over the last two decades, fewer young people are entering the workforce, and a long-term trend toward earlier retirement is slowly going into reverse. Fortyone percent of American workers now expect to work beyond age 65. Thirty years ago, it was 12%.
“There was an increase in retirements in some countries during the peakCOVID Great Resignation, but that moment is now looking more like the Great Sabbatical as those workers increasingly return to work,” said James Root, partner at Bain & Company and co-chair of the firm’s think tank, Bain Futures. “People work longer into their lives, yet we’ve found it rare to see organizations put programs in place to fully integrate older workers into their talent system.”
In Bain’s continuing research into worker motivation, the firm surveyed 40,000 workers across 19 countries about what motivates them to go to work and what helps them thrive when they get there. This research shows that as workers age, their priorities evolve. The average worker over the age of 60 is most focused on doing interesting work in a job where they have autonomy and flexibility. Many are focused on mastering their craft, while others feel rewarded by seeing their actions make a positive social impact.
The share of part-time and self-employed workers increases as they approach retirement. But this doesn’t translate to a lack of commitment. Bain’s research shows that older workers feel more loyal to their companies and are more satisfied in work and life. However, few firms are recognizing these changing needs of experienced workers.
Bain’s research shows that older workers in the US are offered training less often than their younger counterparts. And globally, multigenerational workforce programs — such as reverse mentoring and re-entry programs — are rare, according to the AARP.
“With the right tool kit, aging workers can help employers get ahead of their talent gaps and create high-quality jobs that turn older workers’ skills and experience into a competitive advantage,” said Andrew Schwedel, partner at Bain & Company and co-chair of Bain Futures. “Companies that invest in recruiting, retaining, reskilling, and respecting the strengths of this group will set themselves up for success as the demographics of the workforce continue to shift.”