A Guide to Managing an Ageing Workforce - Public Sector ...

1. The Facts of Workforce Ageing
The age at which people choose to retire has increased over the last decade. This will increase further with
the Federal Government’s announcement in the 2009/10 budget to increase the pension age to 67 years from
2023. Life-expectancy has increased and people will live and work for longer. In contrast, the lower rates of
fertility indicate the number of younger workers who enter the labour market will continue to fall.
Figure 1 ii iii shows the trend of an increasing concentration of the 45 plus age group in the Australian work
force. A corresponding stagnation in the under 25 category indicates that participation rates amongst mature
age groups will become critical as labour supply declines. Unless mature age groups are encouraged to stay
in the work force for longer there may be an insufficient labour supply to meet demand.
Figure 1: Labour force growth, 1982–2012
1982-1992
1992-2002
2002-2012
15%
Source: Australian Bureau Statistics, Labour
Force Australia, 2002, 1999
Under 45
45 and over
32%
28%
68%
72%
85%
Implications of an ageing workforce
The Western Australian Government submission to the Productivity Commission Study, Economic Implications
of an Ageing Australia (2004) iv , projected:
• the Western Australian population over the age of 65 would grow from 11.9% in 2009 to 20.6% in 2045
• a shortfall in the public sector workforce between 4% and 23% by 2022
• that health and education are the public sector industries most likely to be affected by an ageing population
• competition for skilled staff between agencies, and with the private sector will intensify
• future shortages in other States for particular skills could result in a significant skill drain from Western
Australia
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A Guide to Managing an Ageing Workforce
www.publicsector.wa.gov.au