A Post-COVID World Will Be Full Of Challenges and Opportunities - Workforce Participation of Older Adults Is Just One of Them

Older workers have struggled to find work even during times of low unemployment rates. After losing their job, workers over the age of 50 take longer to find a new one. This reality created a new line of business – services that specialize in helping older job seekers find a job, or help employers find mature talent. The covid-19 pandemic has caused employment for older workers to drop significantly, the decline in employment rate for the over-50s has been twice as big as for those aged between 25 and 49, and millions were forced into early retirement. The challenges older workers face in the job market might be a contributing factor to the rise of “boomerpreneurs” – baby boomers who are starting new businesses, but starting a business is not a one-size-fits all solution.
Some might think that exiting the workforce earlier than expected is not that big of a deal, but the reality is that many baby boomers don’t have enough saved for retirement, and each year of employment is critical to their ability to sustain themselves for the rest of their lives post retirement- which could be 20 or 30 years, depending on life expectancy and age of retirement. Even for those who do have enough savings – a forced exit from the workforce before they can withdraw from their retirement funds might put them in a tough spot, not to mention the other benefits stemming from staying employed, like daily social interactions and a sense of purpose.
There’s a lost decade of employment – between the age workers are either forced to retire or forced to settle for low-paying, part-time jobs – and their actual age of retirement. If making sure that those who are able and willing to keep working until or past retirement age is good for the economy, for companies’ bottom lines, and there are clear incentives for individuals to postpone retirement, what can be done to make this a reality?
The world economic forum suggests some changes, such as “providing more flexible work options and retirement options” and “promoting lifelong learning”.
They also state that “retraining, reskilling and upskilling improves employability of all workers throughout their lives”
This falls in-line with the need to reskill many workers who will soon be replaced by automation, which is another trend that has been accelerated by the pandemic.
The industries that were hard hit like travel, hospitality, and leisure, and in which many jobs were lost in the past 15 months, are home to the occupations that were hit hardest, and also likely to be replaced by automation. In fact, automated self- check in is already replacing receptionists in hotels, and some restaurants offer 24 hour service with zero human interaction.
The reskilling of millions of older workers could be part of a bigger play of reskilling tens of millions of workers in occupations that will soon be obsolete. Not all employers invest in ongoing education for their existing employees and even those who do, might be reluctant to offer training opportunities to older workers. Oftentimes, individuals who want to keep learning
throughout their careers have to take matters into their own hands. This has become easier in recent years with the proliferation of online learning platforms like Udemy, Skillshare and Coursera (which recently went public at a $5 billion valuation). These platforms are already disrupting higher education, and have contributed to the fact that universities have been offering online courses and degrees online even before the pandemic.
But what about workers who don’t realize their skills are outdated? And those who will need to change occupations and industries altogether, in their 50s or 60s?
Can existing platforms reskill them with the structure and scale that’s required to change the trajectory of economies like Japan? Will they provide training for new jobs that haven’t existed a few years ago, like drone operators? Most importantly, when thinking of older workers or workers in occupations that don’t require digital literacy – are they inclusive to digital immigrants? How can we make sure that every older adult who is able and willing to stay in the job market has the ability to do so? This is a momentous task, and it is obvious by now that technology will have to play a big role in achieving it.
For many companies around the world who are desperate to find quality workers, a new normal in which remote work is common and geographical barriers less of an issue, provides an opportunity – to tap into the reservoir of talent that is millions older workers who were forced out of the workforce with invaluable skills, knowledge and experience.
How will this be achieved? And who will be the companies to seize this opportunity?