The report titled ‘The Midcareer Opportunity: Addressing the Challenges of an Aging Workforce’ presents insights gleaned from OECD data and an extensive survey conducted across eight countries involving thousands of employers, job seekers, and employees in Europe and the United States. Google.org funded the research in Europe, while Clayton, Dubilier & Rice supported the initiative in the United States.

Hiring trends amongst older and midcareer workers in OECD COUNTRIES

As of 2020, individuals aged 45-64 constituted 40% of the OECD workforce, marking a substantial increase from the 28% recorded in 1990. This demographic shift highlights the growing prominence of midcareer and older individuals within the available talent pool.

Stefano Scarpetta, Director of the Directorate of Employment, Labour, and Social Affairs at the OECD, emphasises the value of aging workers due to their skill sets, experience, and dedication. He underscores the importance of retaining them in the workforce to sustain robust living standards and address the recruitment challenges faced by businesses. Scarpetta asserts that all stakeholders must collaboratively strive to create longer and more fulfilling career opportunities for workers, irrespective of their age.

However, the report's findings reveal that employers are not capitalising on this demographic shift. A significant 40% of employers express a preference for hiring individuals aged 20-29, while almost half (47%) indicate a preference for the 30-44 age group. In contrast, only 35% express a willingness to hire individuals aged 45-54, and this percentage drops to a mere 13% for those aged 55-65.

Consequently, individuals aged 45-64 represent a substantial and growing segment of the long-term unemployed population. Across the surveyed countries, which include the Czech Republic, France, Germany, Romania, Spain, Sweden, the United Kingdom, and the United States, this group accounted for 44% of the long-term unemployed in 2020, up from 36% in 2000.

The age-experience dilemma and valuing senior talent

Although employers value experience, its advantage diminishes with time. In the survey, hiring managers indicated that they would be equally likely to interview candidates with five years of experience as those with 25 years.

This phenomenon is largely driven by concerns that individuals aged 45 and above may struggle to adapt to rapidly evolving technology. Over half (52%) of employers generally believe that individuals aged 30-44 possess the requisite tech skills for work, while only 30% hold the same view for workers over the age of 45. Additionally, employers perceive midcareer and older job applicants as less willing than their younger counterparts to embrace new technologies or acquire new skills.

Paradoxically, an age-performance paradox exists, as employers highly value employees aged 45 and above who are already part of their workforce. An overwhelming 89% of employers reported that midcareer and older workers they had hired performed equally or better than their younger counterparts. Furthermore, they noted that these employees learned as quickly, if not more so, with an impressive 83% affirming this.

Mona Mourshed, Global CEO of Generation, underscores the missed potential of talented candidates aged 45 and older. She points out that ample evidence exists to demonstrate that workers in this age group can excel in the workplace. Mourshed urges employers to revise their hiring practices to embrace candidates of all age groups, thereby filling essential roles and enhancing organisational performance.

Challenges in recruitment and training for older workers

Midcareer and older job seekers encounter age biases during their job searches. Regardless of their level of educational attainment, more than half of job seekers (53-54%) find the job search process challenging, with age being the most commonly cited obstacle.

The findings also reveal a disconnect between what employers value most and how midcareer and older individuals present themselves in the workplace. Employers emphasise the importance of continuous training and upskilling, but individuals in this demographic often believe that their work experience alone is sufficient proof of job readiness. Regrettably, fewer than one in four have engaged in training over the past three years, and training participation decreases with age, irrespective of educational background.

Access to training opportunities remains a concern, with only 53% of employers offering training, leaving workers to explore alternative avenues independently.

Furthermore, individuals aged 45 and above tend not to seek jobs in the places where employers typically look, such as recruiting firms, referrals, and LinkedIn. While 50% of employers utilise LinkedIn for talent acquisition, only 24% of older workers consider LinkedIn one of their "preferred" job search channels.