Of course, the report’s warning that an ageing population threatens lower rates of growth, increased welfare costs and lower productivity must be taken seriously. But, as Stephen Lunn reported in The Australian yesterday, there may be little difference between the productivity of older and younger workers. Australia’s historically short supply of labour has encouraged the employment of older workers as the economy has expanded. The policy-making challenge is to ensure that as the population grows the participation of older people in employment remains high, and that the labour market has the flexibility to adapt to changing circumstances. Allowing businesses room to move is the best help governments can give.

The government’s appointment of Susan Ryan as Age Discrimination Commissioner is well intentioned, and a sign that it understands the value of older Australians. We strongly reject, however, the subliminal message that prejudice against older workers is widespread. On the contrary, the evidence from the real world is that the contribution older Australians make in the workplace and the community is respected and appreciated.

OECD research shows that the Australian economy is a leader in the participation of workers aged 60-64. The unemployment rate for mature-age workers is 3.3 per cent, which is much lower than the nation’s employment rate at 5.2 per cent. It suggests most employers already realise that older workers are one of their greatest assets. Some employers may baulk at hiring an older worker because they are more likely to seek higher wages than younger workers. But older workers are also more likely to be highly skilled, knowledgeable, experienced and offer greater stability in their tenure than younger workers. And, as the evidence now suggests, they are just as productive as their younger colleagues.

Flexibility cuts both ways, however, and mature-age workers must be prepared to adapt to changing work practices and to develop their skills. A curmudgeon-like reluctance to change helps neither employer nor employee. That is why Reserve Bank of Australia board member Roger Corbett’s call for “better balance” in our workplaces should not be ignored. Corbett says “there’s a real payback for investment that produces greater efficiency and therefore greater productivity”. Removing barriers that limit opportunities for older Australians to take up and remain in employment is the right approach, rather than reverting to ill-defined human rights in response to perceived discrimination. Nor do we need European-style social polices that encourage early retirement. Former treasurer Peter Costello’s reforms that allowed retirees to re-enter the workforce by trading salary and drawing-down on their superannuation is the preferred way. We must continue to recognise the qualities in older workers and pursue polices that provide for flexibility to encourage their ongoing and valued employment

Source: The Australian

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