Age-related workplace barriers could cost Organisation for Economic Co-operation and Development (OECD) economies nearly $500 billion in cumulative productivity losses by 2040, the World Economic Forum and Marsh said in a new report, as ageing populations grow far faster than the working-age workforce.
OECD economies refer to the 38 member countries that are highly developed, democratic, high-income nations that operate on free-market principles.
“OECD countries, it is estimated, will suffer nearly $500 billion in productivity losses by 2040, due to under- and unemployment of adults aged 55+ relative to younger workers,” the report finds. The losses are tied to longer unemployment spells and structural barriers that push many older adults out of the labour force entirely.
The demographic pressure is intensifying. “By 2040, the global population aged 65 and over will grow by more than 50 per cent, increasing from 856 million to 1.3 billion. Meanwhile, the working age population, aged 25 to 64, will grow by just 13 per cent,” the analysis notes.
The cost is already visible country by country. Between 2025 and 2040, extended unemployment among workers aged 55+ is projected to cost the US $113 billion and France $106 billion in cumulative GDP losses.
In Canada, the estimate reaches $7,530 million. Other major impacts include the United Kingdom $25,590 million, Brazil $105,810 million, Netherlands $26,250 million, and Japan $5,870 million.
