Background
One of the most important issues facing the world of work in the coming decades is demographic change. The global population is ageing. The US Department of Commerce estimated the number of people aged 60 or older today to be 605 million, and projected that to grow to almost two billion by 2050. According to the 2006 Revision of World Population Prospects, for the first time in history the number of persons over the age of 60 in the world will likely surpass the number of persons below the age of 15 by the year 2045. This has major implications for economies and markets everywhere, even in the near future. The current political debates on what to do about it are fiercest in developed countries, but the issue has already raised concern in emerging market countries as well.
The debates are mostly about measures necessary to keep welfare systems afloat while dependency ratios increase on account of the rising high-age segment (those above 65 years). As more people retire and live longer, fewer young people enter the labour market-and tend to do so at a later age than was the case in the past, effectively reducing the total length of their participation in the labour market. This puts into question the sustainability of social security systems, especially as regards health and old age benefits. However, the challenge is also about where to find adequate supplies of skills to sustain economic activities essential for the decent work agenda and prosperity for everybody.
Business has begun to consider what needs to be done to overcome the challenges of an ageing population. Employers are engaging in the public debate while taking measures within their own operations to retain older workers. The answers to the challenge have to cover both public policy and workplace practice, and they need to address acquired rights, expectations, attitudes, beliefs and behaviours. Age discrimination legislation has had mixed results, and new thinking is required to create an environment that sets the right incentives, encourages the right behaviours and allows necessary adjustment.
Responses to the demographic challenge also need to take account of a dynamic world where common perceptions based on observations made in the past no longer hold true. For instance, increasing education, better health and improving lifestyles have transformed the average older person.
The impact of ageing populations in the developed economies will have large scale impacts on the developing world and vice-versa. Increased labour migration, off-shoring of work and increased labour productivity are some of the solutions presented to this demographic challenge. Some fear the brain drain will harm the development prospects of poorer countries, while others consider that migration and productivity increases are limited measures that will not adequately meet the demographic challenge.
The event
The ILO's Bureau for Employers' Activities organized an international symposium to address these issues from a business perspective. It was held in Geneva, Switzerland, on 28 and 29 April 2009, and brought together employer representatives from a wide range of countries, both developed and developing. The expertise to inform the discussions included leading researchers and thinkers, as well as practitioners from the business community who have taken a lead in addressing the ageing of the workforce.
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