Comment
Support needed to keep older workers in employment
VERONICA SHEEN, COTA Australia’s deputy director, argues that governments need to work harder to ensure that older people have the opportunity to participate in the workforce.
The Federal Government is now grappling with the problem of a growing, ageing population putting pressure on health, pharmaceuticals, pension and aged care expenditures. The only ‘solution’ announced so far is a call by both the Prime Minister and Minister for Aged Care for older Australians to keep working so as to keep paying taxes and not drawing on a pension.
But this ignores the fact that many older Australians who want to work, don’t have the opportunity to do so. Specific policies are needed by the Government to ensure meaningful workforce participation by older workers.
Instead of talking about the broad group of 55 to 70-year-olds staying at work, the Government needs to concentrate on those under 65 who still have to work or want to work, but can’t find jobs. Forty-six per cent of people in the 50 to 64 age group do not have paid employment, and one in three 50 to 64-year-olds rely on some form of social security payment.
Most Australians cannot afford to retire in their 50s. They have little superannuation, as it became compulsory only in the 1980s. Many have families requiring ongoing education and financial support.
There is also evidence of significant health and well-being effects on individuals from continued working and economic participation. This in turn reduces the call on Government for health and welfare services and outlays.
An age balanced workforce will ensure that there is a good blend of skills and the transmission of desirable work traits from older to younger workers, such as loyalty to the organisation, work ethic and stability as well as well-honed skills and abilities.
The Prime Minister has talked of the need for a flexible labour market to respond to older workers’ needs and choices. But this is not the real problem. Government action is needed against widespread discrimination against older workers. A survey by Drake International of 500 employers has shown that none would employ an older worker.
Over 50s are discouraged from seeking employment, are discriminated in the workforce and are forced into involuntary early retirement, which is neither planned for nor desired.
The immediate reforms needed are:
• education of employers about the ageing workforce combined with a strengthening of age discrimination legislation;
• government investment in relevant training and provision of high level assistance to those seeking employment.
There is a need for longer term planning for the ageing population and ageing workforce. This means:
• individuals, employers and governments must make a commitment to life-long learning which will involve time and resources to ensure ongoing relevance of skills for the changing needs of the workforce, and to encourage flexibility and adaptability;
• employers must evolve policies and practices for age diversity in the workforce. This will include exploring options for flexible employment and phased retirement, and fostering the skills of the mature worker;
• governments must provide appropriate income support for those seeking work and those unable to find work.
