26 August 2008
Australian businesses need to do more to encourage older workers to stay in the workforce longer to counter the ageing population's potentially huge impact on labour supply and economic growth, according to Monash education experts.
A study from Monash's Centre for the Economics of Education and Training (CEET) found that while the number of people aged 45 to 64 in the workforce had grown substantially over the past 20 years, more than 40 per cent of Australians still leave the workforce by the age of 55.
The study also found that 80 per cent of Australians leave the workforce by the age of 65, and only five per cent of Australians are still working at the age of 70.
CEET researcher Fran Ferrier said improving training programs for older workers was crucial for arresting this trend because older workers were more likely to keep working if they had up-to-date skills and qualifications.
"Older workers are facing barriers to participation in skills development training programs, including employer attitudes, a lack of information about training options being provided to them, work and family commitments, financial difficulties, and sometimes their own doubts about their ability to succeed," Ms Ferrier said.
The CEET study, Skills development for a diverse older workforce, is published by the National Centre for Vocational Education Research (NCVER).
The study included seven case studies of in-company and community-run skills development programs that targeted older people (45 and over) or had a high participation rate of older people.
Ms Ferrier said businesses benefited from the case-study training programs through having more capable and productive workers, less need for worker supervision, an enhanced reputation as a desirable place to work, and lower insurance premiums due to fewer occupational health and safety problems.
Older workers benefited through being able to take on new roles and responsibilities, and gaining confidence, life skills and access to further study. Many unemployed older people found jobs after completing a community-based program.
In one case study, a company with a high proportion of older workers avoided a mass exodus of key skills, experience and corporate knowledge by training its older workers for new roles that were less physically demanding and by introducing retirement transition programs.
"If the Australian economy as a whole is to avoid a mass exodus of valuable human capital over the next decade, Australian businesses will need to follow this example by being flexible and committed to providing effective skills development for older workers," Ms Ferrier said.
For more information or to arrange an interview with Fran Ferrier contact Monash media officer Ryan Pedler on +61 3 9903 4842 or +61 417 568 781. | 
