Aging Workforce: Over 150 Million Jobs to Shift to Workers over 55 by 2030

A new global study from Bain & Company reveals that by 2030, a staggering 150 million jobs will be taken up by workers over the age of 55. This shift is expected to occur in developed countries, where older and experienced workers will make up more than a quarter of the workforce by 2031.

“That’s a massive shift,” says Andrew Schwedel, a partner at Bain & Company. “Japan is already leading the way with nearly 40% of its workforce aged 55 and above. Europe and the U.S. are not far behind, with anywhere from 25 to 30%.”

However, the phenomenon of an aging workforce is not limited to developed markets. China, for example, is projected to see its elderly population (aged 65 and older) double by 2050 due to factors such as lower fertility rates and longer education.

Retirement trends are also shifting. According to OECD data, the long-term trend toward earlier retirement is slowly reversing. This can be seen in the recent “unretirement” trend, where retirees rejoin the labor force due to a hot job market, rising inflation, and reduced Covid-related health risks. The spike in retirements during the early months of the pandemic now appears to be more of a “Great Sabbatical,” according to Bain.

In recent years, countries worldwide have been increasing retirement ages, but this has faced resistance. For instance, France saw protests earlier this year in response to an increase in the pension retirement age from 62 to 64.

“One thing I hear consistently when I talk to companies is they don’t have the talent they want in the quantities they need,” adds Schwedel. He advises businesses to take proactive measures rather than waiting for policies to be implemented in countries, suggesting the implementation of targeted interventions.

A 2020 global employer survey showed that only about 4% of firms were committed to programs that support the integration of older workers or foster a multigenerational workforce. Schwedel emphasizes that companies that invest in recruiting, retaining, reskilling, and respecting the strengths of older workers will position themselves for success as the workforce demographics continue to shift.

Understanding what motivates older workers is key. Bain’s survey of 40,000 workers across 19 countries found that priorities evolve with age. While younger workers prioritize good compensation, older workers are focused on doing “interesting work” with autonomy and flexibility.

Companies must design workplace experiences that align with the motivations of older workers, says Schwedel. This includes equipping them with the necessary skills for the next decade. For example, 22% of respondents aged 55 to 64 expressed the need for more tech skills.

“To encourage older workers to take advantage of training programs, companies need to design initiatives that cater to their pursuit of interesting work and motivate supervisors to promote participation across all age groups,” the press release states.