Time to change? Promoting mobility at older ages to support longer working lives

Abstract

Extending working lives has been a major priority across the OECD to mitigate the adverse effects of population ageing and declines in the working-age population. Despite significant increases in labour force participation rates of older workers aged 55–64, a key challenge facing policymakers is to promote retention and job-to-job mobility of older workers. Job stability (as measured by job tenure) is falling across many OECD countries and older workers are less likely to change jobs than their younger counterparts. While there is no optimal level of job mobility or length of job tenure – and there are costs and benefits for workers and firms to both – structural changes such as technological change will exacerbate the need for mobility and flexibility at middle and older ages. At the same time, low retention rates and persistently high-long-term unemployment rates among this group illustrate greater need for employers and governments to do more to support older workers to keep their jobs. Achieving this will require a comprehensive approach by all stakeholders including better management of age-diverse workforces in the workplace, removing institutional barriers to continued employment and improving the employability of workers throughout their working lives by, for example, promoting better opportunities for lifelong learning and improving job quality.