The following article is an extract from McCrindle Research Information. (2010, August 18, Sydney)
In tandem with an ageing population, Australia is experiencing an ageing workforce. While Australia’s median age now exceeds 37, the median age of an employed person exceeds 40 in almost every industry sector, and in some sectors like ‘education’ and ‘health’, it exceeds 45.
With the Baby Boomers approaching retirement in record numbers, with Generation Y staying in education longer, and with almost 1 in 3 workers employed on a part-time basis, it is estimated that next year Australia will hit peak labour, when there will be more people exiting full-time roles than there will be people entering them.
McCrindle Research has conducted a national study analysing this issue.
Mark McCrindle, Director of McCrindle Research said, “Every organization, every product and every brand is just one generation away from extinction. Unless companies can recruit and retain the new generation of staff, and engage with the emerging customers, they will struggle to survive.” The labour shortages are produced by demographic factors not just economic ones. Regardless of labour demand fluctuations – the long-term supply is in decline relative to Australia’s needs.
Here are some of the top trends and statistics which will redefine Australia’s workforce as we approach 2020, according to McCrindle and, reportedly, other experts:
There are currently 4.65 million Australians in GEN Y, comprising 21% of our workforce. In 2020 this number will nearly double to 35% while over this same period of time, Baby Boomers will decline from 36% of the workforce to just 15%.
There are 4.22 million Australians in GEN Z and although not currently working, by 2020 they will comprise 12 % of the workforce.
It has never been harder to attract, recruit and retain staff. Those aged 20-24 are three times more likely to change jobs in a year than those aged 45-54. Currently, more than 1 in 4 workers change jobs in any given year.
Treasury’s Intergenerational Report (February 2010) states that today for each person of retirement age there are 5 people in the working age population but by mid-century this ratio will almost halve – to just 2.7 people of working age per retiree.
86% of Generation Y’s expect a promotion within 2 years compared to 70% of Baby Boomers.
89.6% of Generation Y agrees regular training from their employer would motivate them to stay longer.
The Top 5 attraction and retention factors for Gen Y are: work-life balance, workplace community, management style, broad job description and training and development opportunities.
For further information concerning ageing workforce issues, please contact Kristine Gatt on 03 9815 6604.
Disclaimer
This publication is intended as a source of information only. No reader should act on any matter without first obtaining professional advice.