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Workforce Ageing in the Territory: The costs of doing nothing

This research study discusses the causes and consequences of population ageing in the Northern Territory, with a focus on workforce ageing. It explores the importance of retaining older workers and the benefits of inclusion and diversity in the workforce. The study also addresses the challenges of adjusting to an ageing workforce.

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Workforce Ageing in the Territory: The costs of doing nothing

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  1. Workforce Ageing in the Territory: The costs of doing nothing Dr. Andrew Taylor, Senior Research Fellow

  2. Demography & Growth Planning:Northern Institute, CDU Through applied research we strive to understand the causes & consequences of population change in northern sparsely populated areas of developed nations, with emphasis on the Northern Territory & north of Australia. Through our research we aim to make a positive difference to policy, communities & society.

  3. Today’s discussion… Part 1 The context of & key data for workforce ageing in the NTPS Part 2 The importance & benefits of retaining older workers & keeping seniors in the Territory: Inclusion & diversity Part 3 Adjusting to an ageing NTPS workforce: How & why?

  4. Part 1The context of & key data for workforce ageing in the NT & NTPS

  5. What is population ageing? • A rise in the median age of the population • Median age - the age that divides a population into two numerically equal groups: half the people are younger than this age & half are older • Median age & ageing varies by gender and ethnic groups

  6. Recorded Sources: 3105.0.65.001 Australian Historical Population Statistics; 2014, 3222.0 Population Projections, Australia, 2012

  7. Our unique ageing circumstance(s) n Projected proportion of NT population aged 65 years & over, 2011 to 2041 242% increase 340% increase

  8. What about workforce ageing? • A global, developed world phenomenon • Similarly, a rise in the median age of the workforce • Most literature suggests we look at workers aged 45+ years (gulp!) as the cohort for the design & implementation of transition policies & programs

  9. How does the NTPS workforce compare? Source: Author calculations extrapolated from ABS Table Builder software , 2011 Census

  10. Much older than the overall population Source: Author calculations extrapolated from ABS Table Builder software , 2011 Census

  11. We are ageing differently across regions Index of projected population aged 65+, 2011 to 2041 686% increase Source: Northern Territory Department of Treasury and Finance, 2014

  12. Gender balance Source: Author calculations extrapolated from ABS Table Builder software , 2011 Census

  13. Driven by NTPS industry sector profile Source: Author calculations extrapolated from ABS Table Builder software , 2011 Census

  14. Why gendered workforce ageing is important • Differences in the transitional needs of women & men: • Women live longer & stay healthy longer • May prefer different work, challenges and transition programs to men • NTPS employment profile is evening out the male bias in our population – this is good! • So, we need to keep older women (especially) in the NTPS workforce

  15. The summary so far • Both population & workforce ageing are in progress in the NT, & we are catching up to the rest of Australia • The NTPS is much older than the overall NT population, but younger than other State/ Territory workforces • NTPS has many more women per 100 men than other States • Workforce ageing in the NTPS is and will be influenced by its spatial distribution & industry profile

  16. Part 2Workforce ageing: Inclusion & diversity

  17. Mind your language Ageing – a condition or infliction. The discourse of ageing is focussed on loss, especially economic loss. “Collectively, it is projected that Australian governments will face additional pressures on their budgets equivalent to around 6 per cent of national GDP by 2060, principally reflecting the growth of expenditure on health, aged care and the Age Pension.” Source: Productivity Commission (2013). An Ageing Australia: Preparing for the Future, pg. 2.

  18. Alternative theories Active Ageing (1960s): An Active Ageing policy will promote healthy & active ageing by enabling everyone to age as well as they can, rather than disengage from social roles. Productive Ageing (1980s): Policies that that maintain the participation of older people in the workforce for as long as possible, partly to minimise economic costs of support. Successful Ageing (1960s onwards): Promoting life satisfaction by continued social engagement, physiological functioning, avoidance of disease or disability & adapting to age-related changes. Source: Asghar Zaidi 1 & Kenneth Howse (2017) From The Policy Discourse of Active Ageing: Some Reflections. Population Ageing (2017) 10:1–10. DOI 10.1007/s12062-017-9174-6

  19. “What all these ideas have in common is a shift of focus away from a condition that requires support and assistance to a process that we can evaluate as going more or less well.” Source: Asghar Zaidi 1 & Kenneth Howse (2017) From The Policy Discourse of Active Ageing: Some Reflections. Population Ageing (2017) 10:1–10. DOI 10.1007/s12062-017-9174-6

  20. Another important trend to consider Selected health expectancies at birth, by sex, 2003 to 2015 Source: Australian Institute of Health and Welfare, (2016) Life expectancy and disability in Australia: expected years living with and without disability, pg. 2.

  21. Extended ‘healthy years’ • Years living without a disability is increasing • Australia has the 4th highest ‘healthy life expectancy’ (after Spain, South Korea & Switzerland) • Healthy living years has outstripped life expectancy improvements during 1998 to 2012 • An important point in the discourse on the negative economic burden of seniors

  22. Why (we) older workers are important: Economics • Workforce contributions & tacit knowledge • Loss of capital & demand - currently around 3,000 in the NTPS who could ‘take the super & run’ • Volunteering, saving taxpayers $b’s • Population growth (read GST share) • Attract other older workers (PLUs) • Grandparents attract/ help retain women, esp. with children

  23. Why us older workers are important: Social & community • Caring for & financial support of family & others • Volunteering • Reducing crime • Community cohesion • Population balance

  24. As the NTPS Discussion Paper says… • NTPS older workers provide a big stock of tacit know how (not least dealing with Canberra!) • They fill critical capability gaps across the NTPS • A transition process is needed to lessen the impact of potential mass retirements

  25. Part 3Adjusting to an ageing NTPS workforce: How & why?

  26. Are we Territory older workforce ready? • Somewhat, very few jurisdictions were/ are truly ‘ready’ & the discussion paper is a good start • Our ageing population is getting more recognition & our growing numbers of seniors more ‘voice’ • But many competing priorities & issues (job losses & redundancies, sluggish economy, low population growth) • But the costs of not doing more will be extensive

  27. Not just another internal policy! Active & tangible older workforce policies & programs are an investment: • Saving on recruitment & training • Preventing capital outflows – super & housing capital • Bringing in money via GST revenues • Saving on government outlays via volunteers in the community

  28. Perhaps some ideas for the NT/ NTPS • Bring back a Minister for older Territorians & make sure they are old(er) !? • Make understanding an older workforce & policies around it part of the induction to the NTPS? • Accommodate the diverse workforce needs (eg by gender & place) • A central budget for older workforce initiatives? • Onus is on the whole organisation (per OCPE document) • Interchange ideas about the rollout, changes & ongoing improvements with key organisations – e.g. COTA, Office of Senior Territorians & NTCOSS

  29. And steal other’s ideas! We don’t have to re-invent things: • Finland’s comprehensive initiatives focused on retirement reforms, education, projects and good practices to retain 55+ years, & research. These have been evaluated as very successful • Westpac (Australia) enterprise agreement retirement provisions for 50+ years including flexible working arrangements, three days leave to pursue retirement related activities & taking one day at a time long service leave • Australian Human Rights Commission (2016) “Willing to Work” report has some good ideas

  30. For seniors and the NT more broadly • Work with relevant organisations to develop & implement an active ageing strategy (eg Tasmania) • Liveable & inclusive communities • Opportunities to participate meaningfully in communities • Safety & security • Health & physical education access • Ongoing education opportunities (free CDU enrolment?) • Provide incentives for seniors to stay in or move to the NT from interstate (population growth benefits) • Ongoing research on how seniors are faring & how other jurisdictions are transitioning – adjust policies & programs accordingly

  31. Thank you:andrew.taylor@cdu.edu.au “If we knew what it was we were doing, it would not be called research, would it?” (Albert Einstein)

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