Ageing populations across Organisation for Economic Co-operation and Development (OECD) economies are emerging as one of the biggest workforce challenges over the next two decades, with age-related discrimination threatening to wipe out nearly $500 billion in productivity by 2040, according to a report by the World Economic Forum (WEF) and Marsh.The OECD is a grouping of 38 mostly high-income countries that work together on economic policy, trade and development.The report warned that labour markets are entering a period where the number of older adults is growing far faster than the pool of working-age people, making it increasingly costly for economies to sideline experienced workers. “OECD countries, it is estimated, will suffer nearly $500 billion in productivity losses by 2040, due to under- and unemployment of adults aged 55+ relative to younger workers,” it stated, as quoted by ANI.Globally, the population aged 65 years and above is expected to jump from 856 million to 1.3 billion by 2040, an increase of more than 50 per cent. Over the same period, the population between 25 and 64 years, considered the core working-age group, is projected to expand by only 13 per cent.Against this backdrop, the report estimates that OECD countries could collectively forgo almost $500 billion in productivity by 2040 because workers aged 55 and above are more likely to remain unemployed for longer or leave the labour market altogether than their younger counterparts.The economic burden is expected to be particularly pronounced in major economies. Between 2025 and 2040, prolonged unemployment among older workers could reduce GDP by $113 billion in the United States and $106 billion in France. Estimated losses are also pegged at $105.8 billion in Brazil, $26.3 billion in the Netherlands, $25.6 billion in the United Kingdom, $7.5 billion in Canada and $5.9 billion in Japan.The WEF said the true impact is likely to be even greater because many older adults stop looking for work altogether after facing repeated barriers to employment, meaning they disappear from official unemployment statistics.Beyond economic losses, the report said ageism also carries significant health and social costs. In the United States alone, age-based discrimination has been linked to around 17 million cases of disease and added at least $63 billion to healthcare spending in 2018. Research has also associated workplace ageism with depression, poorer physical health and reduced access to medical care.The report further argued that businesses have much to gain by retaining older employees instead of viewing ageing as a workforce risk. Organisations with multigenerational teams tend to benefit from stronger innovation and knowledge sharing, with experienced employees mentoring younger workers while also acquiring new digital skills.Several countries have already adopted policies to extend working lives. South Korea has achieved a record 70 per cent employment rate among people aged 55-64, Japan has recorded rising employment among those over 65 for two decades, while Sweden allows people to draw part of their pension without leaving the workforce.According to the report, tackling age discrimination is no longer just a social objective but an economic necessity. Making workplaces more age-inclusive could help ease labour shortages, improve productivity and reduce pressure on public finances as populations continue to age.
