Older workers a large untapped resource

• 25 Jan 2017

IT MATTERS … because companies and societies benefit from having an older workforce

While people are living longer than at any other time in history, birth rates are plummeting in Asia. Unless countries across the region redefine the working age, Asia may leave a massive resource untapped – the elderly people who are physically and cognitively able to work.

It is not easy for older people to find jobs. Asia remains an “ageist” region, with a common perception that elderly people are economically unproductive. Older workers are perceived as being less accepting of new ideas, reluctant to learn new skills and inept in using new technology.

Employers consequently refuse to hire or promote older workers. They also tend to invest less in older employees by limiting job responsibilities and training, subtly encouraging them to retire.

This approach could be extremely detrimental in Asia, where the elderly population is forecasted to reach 922.7 million by 2050, according to the Asian Development Bank. The low birth rates will lead to a significant shrinkage of Asia’s working-age population.

Between 2015 and 2034, the elderly population will grow by about 22% every five years. By 2050, 36.5% of Japan’s population will be aged 65 and above, compared to 17.2% in 2000. In Hong Kong, Singapore and South Korea, more than 29% of the population will be aged 65 and above by 2050 – and in China, more than a quarter of the population.

Korea is expected to lose more than 15% of its working-age population between 2010 and 2040, while Japan, Thailand and China will lose more than 10%. In China, that means around 90 million fewer working-age adults in the workforce.

Younger employees are increasingly challenged by the need to balance work with caring for elderly parents and relatives. Combined with the long working hours and commute time in some parts of Asia, this juggling can affect a worker’s health and social life, resulting in lost productivity.

“People are stepping out of their careers to take care of their parents when they aren’t so far from retirement themselves, so it’s like they’re being penalized economically for caregiving. So we need to find a way to support women and men in the workforce who are taking care of their elderly parents,” said Nancy Morrow-Howell, director of the Harvey A. Friedman Center for Aging at Washington University in St. Louis.

Changes are gradually occurring. Employment schemes with terms and conditions that can be renegotiated as employees get older are being implemented. This could give older workers more flexibility and at the same time reduce costs for employers.

Changes in behavior and attitudes on the part of employers, workers and the society as a whole are necessary to combat the challenges of ageing populations.

“It is important to keep balanced views about ageing,” said Morrow-Howell. “Ageing also brings tremendous benefits – with age, people have greater wisdom, resources and experiences, which can benefit themselves, families, communities and societies.”