Valuing Australias Older Workers

Slides 1, 2, 3, 4, 5, 6, 7, 8

Demographic information

The shift in age structures over the next fifty years means that the number of people aged 65 years and over relative to the population aged 15 - 64 will alter significantly as the baby boomer generation (those born between 1946 and 1965) age and fewer people are born.

In the early 1960s the average number of children born to each woman in the population was 3.4. Today that rate is around 1.7. There are predictions that that number will decline further in Australia. In some countries in Europe it is now 1.3.

Today's average 50 year old can expect to live another:
. 30 years (males)
. 34 years (females)

Currently -
there are 5.25 people in the workforce for every person aged 65 or more,

but -
towards the middle of this century, after the baby boomers have retired, there is likely to be only 2 people of working age or every person aged 65 years and over.
(Access Economics, ABS)

At the moment there are around 290,000 people aged 85 or more in Australia - roughly the size of a small city like Canberra. By 2050 -51, the metropolis of the very old will have grown to 1.6 million, or 6 percent of the population.

There will be 4 million baby boomers potentially leaving the workforce in the next 20 years.

The supply of working age people in Australia (15 - 64 years) currently grows at approximately 180,000 per year.

Estimates indicate that this growth will have dropped to an average of approximately 19,000 a year in the decade of the 2020s.
(Access Economics, ABS 2005

When and if workers retire can be influenced by Australia's employers.

An employer who can attract and retain competent experienced people in the workforce for longer will be able to cope with these dramatic shortages much better.

It is difficult to predict when the decline in numbers of young people will impact in Australia as the impact will vary from industry to industry and State to State.

In some industries (nurses, teachers, some trades, farmers) this is evident already.

Links to websites supporting this brochure can be found in the RTO Kit.

Slide 9, 10, 11, 12

Potential implications of the decline in the growth of younger workers

A shortage of skilled workers could have a far reaching impact on the economy.

Employers may not be able to hire the people needed to maintain production or services, for example

Young people may be more mobile as businesses compete for the reducing number of them.

Businesses may be forced into a "bidding war" to attract them.

Slides 13, 14, 15, 16

Implications for RTOs and Employers

As the numbers of young people reduce from previous levels employers will necessarily look for their workers in areas where participation has not been high.

Two areas of participation tend to be highlighted. Those on support arrangements, and older workers. Women used to be heavily under-represented in the workplace. There may still be scope to increase female participation.

This project is addressing particularly older workers although participation from all areas is important.

Older workers present an immediate benefit to employers. They are knowledgeable, skilled, adaptive, have a positive attitude to work.

If employers look to their older workers in a positive light they will have the capacity to address problems with labour supply.

However, whilst many older workers wish to stay in the labour force, some will wish to depart against the best interests of the business and employers may have to change work practices to encourage their continued participation.

Slides 17, 18, 19, 20

Integrating business and training

As the workforce composition changes, there are opportunities for even more integrated business/training partnerships.

At present, few people engage in formal skilling beyond age 45, although many engage in informal, enterprise level skilling.

As workers extend their work lives, the potential for them to go for 15 or 20 years without skilling must be considered by employers and training professionals alike and greater efforts made to integrate people of all ages.

However, it is unlikely that employers or older workers will wish to approach skilling in the same way as, for example, people in their 20s or 30s who often have fewer demands on their time.

Older workers, and their employers, will be looking for short modules, on the job skilling, recognition of prior learning, methodologies that respect the time needs and possible anxieties of the older client group. They may or may not be keen to take part in accredited courses.

The depth of experience and prior training are likely to render Certificates 1 and 2 less important to this client group.

There is much that RTOs can do in their preparation for this demographic.

Slides 21, 22, 23, 24

RTOs Role

Mature age learners bring a wealth of knowledge and skill and a capacity for further development that is at least equal to all other workers. They also bring loyalty, accuracy a strong work ethic and less absenteeism. (See "Population Ageing and the Economy" Access Economics January 2001 for a summary of these aspects of the mature age workers' attributes).

However, greater training expertise will be required for trainers to assist employers create an "ageless" workforce, where there is mutual respect amongst employees regardless of age and where managers and supervisors are assisted in developing the skills of managing the ageless workforce.

Slide 25

Where to begin?

At this stage training providers have the opportunity to anticipate and plan for the requirements of an older client group.

Understanding the needs of both employers and the older learners, upskilling their professional capabilities and revising the way they promote learning to their clients.

Older workers may also bring anxieties about their IT and other learning abilities, less time available to take part in off the job learning and a greater need for encouragement by training providers.

Extensive demands for RPL are likely to be experienced and changes to some current learning packages are likely to be required. The application of quality standards will be of critical importance.

Training professionals may find themselves advocating for the needs of the older learner, and may need to adapt to their learning requirements in ways not yet practised.

Conducting this preparation for the new demographic within a framework of good practice will ensure the success of this adaptation.

Slides 26, 27, 28

Principles of Good Practice is essential in guiding planning and practice for a significantly increased population of learners.

Slides 26 & 27 are provided as a template. Individual RTOs may wish to customise this template, others may adopt it as it is.

Either way, the Principles should be visible and used as a measuring tool against which practices are assessed.

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