Is Age just a number? - Thriving in the boom of aged workforce
Is Age just a number? The Benefits of an Aging Workforce
A Newsletter from Aura Workforce Analytics
💡 Propelled by increased human longevity and technological advancements, individuals over 50 are shaking up labor markets and redefining typical career trajectories. Their rising prominence brings invaluable knowledge, seasoned judgment, and a wealth of opportunities for both the employers and the employees. 💡 Recognizing their resilient and persistent relevance, employers are now realizing the benefit of this treasure trove of expertise and reliability in fostering innovative business strategies. As the workforce continues to age, tapping into the potential of older employees becomes the game changer for corporate success.
10.6% Surge in Demand for AI Professionals over Mainstream Software jobs in H1 2023
The demographics of the global workforce are changing at a brisk pace—propelled in good measure by increased human longevity and rapid technological advancements. The aging white-collar workforce domain, traditionally over-looked, has emerged as a distinct, dynamic segment. People aged over 50 are embracing the longevity economy, shaking up labor markets worldwide and demanding a reformulation of traditional career trajectories.
The reasons for this shift are multifaceted, ranging from better healthcare which aids longer, productive lives to economic compulsion that necessitates older citizens to remain active earners. Independent of the reasons, the rising prominence of these experienced professionals brings a wealth of knowledge and seasoned-judgment into the job market - providing a range of opportunities for both employees and employers alike.
Over the past two decades, the global white-collar workforce aged over 50 has shown remarkable growth with more than 45% increase from 2003 to 2023, debunking the notion of a less dynamic aging workforce.
The country-wise examination gives us a more nuanced understanding of this upswing. Australia and India have witnessed a near-parallel growth of 64%+, with countries like the UK, France, Italy, and Germany showing uptake upwards of 49%. North American countries of the US and Canada recorded a growth of 39% and 46% respectively.
For a workforce that was seen somewhat on the periphery, this rise is a testament to the older employees’ persistent relevance. They bring hard-to-replace professional competence and wisdom, a value duly recognized by employers. This aligns with a recent Bain & Company report, which emphasizes the critical role of the older workforce and the strategic need to retain them for enhanced productivity at the workplace.
Diverse Industries Show Increasing Acceptance of Older Workers
Altered as the landscape is, the change is not uniform across all sectors. Certain industries are far more receptive to older workers, while in some the trend is just beginning to take root. As per our analysis, the Higher Education, Hospital & Health Care, and IT & Services seemingly lead the pack in highest white-collar workforce over 50 years.
However, this growth is not confined to these sectors alone. Real Estate, Management Consulting and Non-Profit Organization Management have shown a significant surge in last 2 decades.
Emerging Sectors Recognize Untapped Potential in Older Workforce
The rising industries in the future continue to transform. In the last two decades, sectors like Venture Capital & Private Equity, Renewables & Environment, and Think Tanks have emerged as some of the fastest-growing industries for the white-collar workforce aged over 50, with growth rates of 261%, 246%, and 241%, respectively. This suggests a significant shift and broadening of opportunities in the labor market for older workers.
The steady increase in the older workforce across diverse sectors points towards an increased recognition of the wealth of knowledge, experience, and stability they bring to the table. Not only are businesses becoming more inclusive, they are also realizing the potential of unlocking valuable growth avenues by leveraging the wisdom of their older employees.
The numbers unequivocally distinguish the older white-collar workforce as more than just a demographic cohort—they symbolize resilience and lifelong learning. The significant growth in their presence across countries and industries signals to companies the importance of strategies to engage, inspire and retain older employees. As workplaces become multi-generational, businesses can harness the unique inter-generational dynamics for competitive growth.
Today’s older workforce is a rich repository of expertise and reliability that can lead to innovative solutions and business strategies. Recognizing older employees' untapped potential and creating an environment conducive to utilizing their skills will be the key to corporate success in an aging world.
In today’s rapidly evolving business landscape, understanding the impact of new technologies and trends on talent is essential to harness the full potential of the workforce. At Aura, we support this effort by making workforce data & analytics readily available, enabling comparison of relevant metrics against industry peer benchmarks and exemplars to drive meaningful change.
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Dishanth Umamaheshwara Data & Product, Aura
Note: All information mentioned in this report comes from publicly available data; if you believe the information on your company is incorrect, please reach out to us at: email@example.com
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