Older people will fill over 150 million jobs globally

As many as 1[ads1]50 million jobs will shift to workers over 55 by 2030, according to a new global study from Bain & Company.

In the Group of Seven countries, Bain predicts, older and experienced workers will make up more than a quarter of the workforce by 2031.

“It’s a huge shift,” Andrew Schwedel, a partner at Bain & Company, told CNBC’s “Squawk Box Asia” on Tuesday.

“Japan is already at the forefront of this with almost 40% of the workforce over 55. Europe and the US are not far behind, [with] anywhere from 25 to 30%.”

But an aging workforce is not unique to developed markets — China’s elderly population (65 and older), for example, will double by 2050, according to the study.

“Fewer young people are entering the workforce, partly because of lower fertility rates, partly because of longer education,” Bain added.

“According to OECD data, a long-term trend towards earlier retirement is slowly reversing.”

It can also be seen in the recent “unretirement” trend – where retirees re-enter the workforce – driven by a hot labor market, rising inflation and reduced Covid-related health risks.

The surge in retirements during the first months of the pandemic now looks more like “a big sabbatical,” Bain said.

In recent years, countries around the world have increased the retirement age – but not without setbacks.

In France, for example, an increase in the retirement age to 64 from 62 sparked protests earlier this year.

“One thing I hear consistently when I talk to companies is that they don’t have the talent they want in the quantities they wanted,” Schwedel added.

Therefore, he advised companies not to wait for policies to be implemented in countries, but to “put in place targeted interventions”.

According to a 2020 Global Employer Survey, only about 4% of companies were committed to programs that help integrate older workers or support a multigenerational workforce.

“Companies that invest in recruiting, retaining, training and respecting the strengths of this group will set themselves up for success as the demographics of the workforce continue to change,” Schwedel added in a news release.

The key to that is understanding what motivates older workers – Bain’s survey of 40,000 workers in 19 countries found that priorities evolve with age.

The study found that the average worker under the age of 60 is primarily motivated by good compensation. However, the elderly are most focused on doing “interesting work” in a job where they have autonomy and flexibility.

“Many are focused on mastering their craft, while others feel rewarded by seeing their actions have a positive social impact,” the report said.

Schwedel added, “Motivations differ from individual to individual, and they change throughout one’s career.”

“It speaks to some of the different things that companies have to do if they’re trying to appeal to younger workers versus older workers.”

It’s also critical for companies to design workplace experiences that resonate with the motivations of older workers, Schwedel said.

That can be done by equipping them with the skills needed in the next 10 years, according to Bain. For example, 22% of respondents aged 55 to 64 said they need more technical skills.

“For older workers to benefit from training programs, companies must design programs that appeal to their pursuit of interesting work and encourage supervisors to motivate participation across all age groups,” the press release added.