Ageing and Employment Policies

The digital revolution, the green transition and rising longevity are giving rise to more fluid, fragmented and diverse career paths spread out over a longer lifespan.Consequently, workers across the globe are rethinking their career ambitions and increasingly face the prospect of having to seek new job opportunities and switch careers at middle and older ages.The rate of job changes has increased in recent decades and according to the 2022 AARP Global Employee Survey, almost one in two workers aged 45 and above hopes to or expects to change jobs within the next three years.The green and digital transitions will no doubt create new job opportunities with prospects for good pay, benefits and career progression.Yet, the evidence presented in this report suggests that the likelihood of workers switching to new occupations declines substantially with age.Moreover, unwanted job loss as a result of economic restructuring carries a substantial penalty for many older workers through lower wages in new jobs or long periods of unemployment, hurting overall economic productivity and worker well-being.Older workers with low skills are the most likely to be left behind by the transition into better-paying jobs with better working conditions that do not undermine their health and quality of life.Therefore, business and policy makers will need to do more to support positive and inclusive career transitions that give more experienced workers better opportunities to grow their skills, pay and talent.Such increased opportunities will yield benefits for all, helping businesses, as many continue to see vacancies go unfilled, as well as workers desiring to fulfil their career goals.This report adds to the evidence base on how often and what type of career transitions workers make as they age and on the quality of these job changes.It identifies the benefits and risks associated with mobility for mid-career and older workers in OECD economies.The report also provides recommendations and good policy practices and solutions from around the world on overcoming barriers to career mobility.Ensuring that workers have greater choices and opportunities for career mobility throughout their working lives so that they can work in jobs that meet their needs as they age is an essential requirement of the modern labour market. PROMOTING BETTER CAREER CHOICES FOR LONGER WORKING LIVES © OECD 2024 Key messagesCareer mobility, or the fact of changing jobs or occupations, within or between firms, is essential for the functioning of labour markets and sustaining productivity.At the worker level, it is a wellestablished driver of wage growth, especially for younger workers.Several megatrends such as rising longevity and the digital revolution are moving workers of all ages towards greater career mobility.• Workers 45 to 64 already constituted 41% of the OECD workforce in 2022, up from 29% in 1990.With people staying in the labour force longer, an increasing number of workers want to change or rethink their career ambitions, and therefore planning for a career later in life is becoming increasingly important.• The 2022 AARP Global Employee Survey reveals that one in two workers over 45 is hoping to change jobs within the next three years.On average across OECD countries the rate of job-to-job transitions increased by 1.5% between 2012 and 2020.More people may actually want to change job than currently do because of various structural or personal constraints.Barriers to work due to health problems and disabilities increase with age, alongside demands for providing informal caregiving.These barriers can make it more difficult for older workers to continue working the same way they used to resulting in an increased need for career mobility.For women, childbirth imposes a penalty in terms of wages and career progression.Childbirth can disrupt women's career trajectories through breaks in employment, part-time work and employment in jobs with greater flexibility but lower wages and fewer benefits.Technological change has profound implications for older workers (aged over 55), who may need support in transitioning towards growing sectors and occupations.• Older workers are 14% more likely to work in routine manual occupations than younger workers, thus facing a higher risk of losing their job due to automation. PROMOTING BETTER CAREER CHOICES FOR LONGER WORKING LIVES © OECD 2024Box 1.1.What is career mobility?In this report, we refer to the term career mobility to encompass different types of job changes:• Job-to-job changes measured as people transitioning from one job to another.The definition will vary depending on the survey data used.In EU-SILC, the longitudinal survey is used and those experiencing a job change are identified as those responding "yes" to the question "Have you changed job since last year?".When using linked employer-employee data, a job-to-job change is defined when someone switches firms between two consecutive years.In the United States-CPS, a job-to-job change refers to those who: (1) Had two or more employers in one year, (2) Had one employed but reported a change in 2-digit ISCO code, or (3) Had one employer but two or more spells of employment (although this accounts for only a small number of observations).When using the Korean Labor and Income Panel Study (KLIPS) longitudinal data, a job-to-job change refers to observations where an individual is employed in two consecutive years, but their job tenure is less than one year.In the United States Health and Retirement Study (HRS), a longitudinal survey, a job-to-job change refers to those who responded "no" to working in the same job as the previous wave.• Occupational changes measured as job-to-job changes that also involve a change in occupation.In the European Union Statistics of Income and Living Conditions (EU-SILC), the US Current Population Survey (CPS), and KLIPS, an occupational change is coded as a change in the 2-digit ISCO code conditional on a job change.• Within firm job changes, or promotions, are defined using linked employer-employee data, for individual wage growth of more than 10% relative to co-workers´ wage growth in the same firm.This report also differentiates, whenever possible, between voluntary and involuntary mobility.• Voluntary mobility captures the fact that workers change jobs in order to find better employment.In EU-SILC, voluntary mobility is measured as those workers who when asked why they have changed jobs, responded "to seek better employment".In the US-CPS and KLIPS longitudinal data, voluntary mobility is measured as workers who changed jobs in the past year and had an unemployment spell of one month or less.The US HRS defines voluntary mobility as workers who reported that they "started next job" after leaving their previous job.• Involuntary mobility captures those workers who are laid off, but also who are forced to make job moves.In EU-SILC it includes all workers who did not change jobs in order to find better employment.They could have changed jobs because they were laid off, forced to by their employer, their business closed, or due to family and other reasons, such as caregiving or a partner's job move.In the US-CPS and KLIPS longitudinal data, involuntary mobility captures workers who changed jobs in the past year but experienced an unemployment spell of greater than one month.The US-HRS Life History Module defines involuntary mobility as workers who reported that they were "unemployed" after leaving their previous job.The US-HRS Longitudinal Survey defines involuntary mobility as workers who were laid off or left their jobs for health or family reasons. Increased longevity and population ageing can have profound implications on workers' careers and aspirationsAgeing populations are leading to an ever-larger workforce of midcareer and older workers.Life expectancy at birth averages 81 years across OECD countries up from 72 years in 1980 (Figure 1.1), while How to narrow down job options How to figure out if I need to do training or study to get the job I want Jobs or industries that are in demand now (have lots of jobs available) How to prepare for a job interview How to look for or apply for jobs How to manage the stress of making a job change How to negotiate job offers Jobs or industries that would be in demand in the future How to build my self-confidence to make a job change How to update my resume How to find contacts or networks to help me 'break in' to the job I want How to fight age discrimination How to find jobs available in my local area List of occupations that would be a good fit for my skills/experience/qualifications Assessment of my skills and competencies Information on type of jobs I would enjoy I didn't need any help / nothing was challenging about making my job change %