This report provides information and an evidence base to help prepare New Zealand for the labour market challenges and opportunities presented by an older workforce (defined in this study as people aged 55 plus).
Older workers currently comprise one sixth of the New Zealand labour force and are expected to represent nearly one in four of the workforce by 2020.
We focus on issues associated with the ability of older workers to move between jobs, especially in an environment where jobs may be at risk.
Our aim is to start a discussion about what older workers, employers and government could do to support the employability of older workers in the current downturn and subsequent recovery.
Methodology
The paper focuses on economic theories to determine why older workers may differ from younger and prime-age workers in terms of their employability and job mobility. It also identifies how firms may view older workers as relatively expensive compared with younger workers and as lacking up-to-date skills. We discuss the possible implications of this for the recruitment, retention and productivity of older workers.
The paper discusses and expands on a field of economic literature that has rarely been explored in a New Zealand context and adds a New Zealand dimension to the findings.
Some issues particularly associated with older workers are not covered, including the increased likelihood of disability and health limitations that employers may need to accommodate.
The theories covered are arguably narrow in their focus, but provide a framework for describing labour market issues that are going to increase in importance as the workforce ages.