Post-youth dividend: Help the silver generation aid the economy
Subscribe to enjoy similar stories. As the rich world ages and faces chronic labour shortages, even as productivity slows, the silver generation—those over the age of 50 years—can be a valuable demographic group. Not only to overcome these challenges, but also transform the way society functions.
The silver generation makes up the largest share of new business owners in the US, and its share of the workforce in many large economies has significantly expanded. Governments and firms need to work in tandem for their integration into modern workforces. Barring most of Sub-Saharan Africa and India, the world has been ageing.
China’s population peaked in 2021, the proportion of people over the age of 65 in the US is projected to increase to over a fifth by 2030, the EU’s population is expected to peak in 2026, and India’s fertility rate is falling. Thus the world’s major economies will all have the silver generation making up a significant part of their population. While migration is touted as a way to plug age gaps, the phenomenon is becoming increasingly politicized and unpopular.
In response, governments should focus on absorbing more of their silver generation into the workforce, which is already happening in developed countries. In the US, for example, the labour force participation rate of people aged 55-64 rose from 55% in 1990 to around 65% in 2020. In the EU, it went up from 36% to 60%.
But it could be given explicit policy support. A host of studies show that older adults are staying on at work after retirement age or rejoining work when given appropriate opportunities. Employers and governments need to work together to better use their expertise.
Read more on livemint.com
