7 Economic and social costs of employment discrimination against older Australians
An ageing population presents many opportunities. However, research shows that the low labour force participation of older Australians also has significant economic and social costs.
7.1 Economic costs
There are considerable economic costs associated with low labour force participation of older Australians. According to Deloitte Access Economics, an extra 3 percentage points of labour force participation among workers aged 55 and over would result in a $33 billion boost to GDP – or around 1.6% of national income.[21]
A 5% lift in paid employment among this group would result in a $48 billion in extra GDP – or 2.4% of national income.[22] These gains are on top of an expected $55 billion or 2.7% boost from participation among the over 55s already factored into the latest Intergenerational Report.[23]
At the individual workplace level, lower participation rates and experiences of employment discrimination impact in a variety of ways, including:
- Loss of knowledge and highly experienced and skilled staff
- High costs of recruitment and training
- Loss of productivity in workplaces
- Levels of job satisfaction
- Limiting diversity and its associated benefits in the workplace.
7.2 Social costs and impacts on individuals
The Australian Human Rights Commission’s research indicates that 60% of people who experienced age discrimination found that it affected their self-esteem or mental health, or caused them stress.[24] Others also reported that it had a negative impact on their family or career or made them consider changing their occupation or retraining.[25]
The research found that many people who experience age discrimination in the workplace subsequently give up looking for work or think about retiring or accessing their superannuation.[26]
Other impacts include:
- Involuntary early retirement
- Unemployment and long-term unemployment
- Social exclusion
- Outdating of skills
- Barriers to accessing benefits and the age pension
- Housing stress.
[21] Deloitte Access Economics, Increasing participation among older workers: The grey army advances’ (2012), p i. At https://www.humanrights.gov.au/increasing-participation-among-older-workers-grey-army-advances2012 (viewed 22 May 2015).
[22] Deloitte Access Economics, Increasing participation among older workers: The grey army advances’ (2012), p i. At https://www.humanrights.gov.au/increasing-participation-among-older-workers-grey-army-advances2012 (viewed 22 May 2015).
[23] Deloitte Access Economics, Increasing participation among older workers: The grey army advances’ (2012), p i. At https://www.humanrights.gov.au/increasing-participation-among-older-workers-grey-army-advances2012 (viewed 22 May 2015).
[24] Australian Human Rights Commission, National prevalence survey of age discrimination in the workplace (2015), p 45. At https://www.humanrights.gov.au/our-work/age-discrimination/publications/national-prevalence-survey-age-discrimination-workplace (viewed 22 May 2015).
[25] Australian Human Rights Commission, National prevalence survey of age discrimination in the workplace (2015), p 45. At https://www.humanrights.gov.au/our-work/age-discrimination/publications/national-prevalence-survey-age-discrimination-workplace (viewed 22 May 2015).
[26] Australian Human Rights Commission, National prevalence survey of age discrimination in the workplace (2015), p 67. At https://www.humanrights.gov.au/our-work/age-discrimination/publications/national-prevalence-survey-age-discrimination-workplace (viewed 22 May 2015).
