Occupier_Edge_Fall 2016_A4
Our Changing Workforce
Demographic forces are exerting pressure on the world’s future labour force. Population ageing is one of the most significant of these forces, which will aect not only the future size of the workforce but also its composition. Globally, while growth in the working age population will continue, the rate of growth is projected to slow. This will present opportunities and challenges at the regional and national level.
Growth in working age population to slow
Gen Y to dominate labour force composition
Growth in the working age population will slow dramatically over the next 20 years – an increase of 18% compared to 40% 1995-2015.
By 2035, Baby Boomers will no longer be part of the workforce in OECD countries, while Gen Z will exceed Gen Y in working age population size.
ABSOLUTE WORKING AGE POPULATION GROWTH PERCENT WORKING AGE POPULATION GROWTH
BABY BOOMERS GEN X
GEN Y GEN Z
1.069 Billion
1975-1995
% of working age in
55%
31%
25%
1.217 Billion
41%
1995-2015
40%
2% 2015
757 Million
11%
2015-2035
18%
25%
41%
24%
2025
0%
13%
41%
Aged dependency to increase
46%
2035
Aged dependency will increase. As populations age, a greater number of retirees will need to be supported by a shrinking labor force.
Japan’s sharp decline in labour force
Japan is forecast to experience a 15% decline in working age population between 2015 and 2035.
2015
2035
Global Rank (2015)
Global Rank (2035)
2.3 2.9 3.1 4.8 3.1 3.4 6.2 3.6 4.0 4.5 4.4 7.9
1.8 1.8 1.8
JAPAN ITALY GERMANY HONG KONG SAR, CHINA PORTUGAL EUROPEAN UNION SINGAPORE UNITED KINGDOM
1 2 5 42 6
1 2 3 4 5
2.0 2.0 2.2 2.3 2.6 2.6 2.8 3.1 4.9
100+ 95-99 90-94 85-89 80-84 75-79 70-74 65-69 60-64 55-59 50-54 45-49 40-44 35-39 30-34 25-29 20-24
Males
Females
60 21
17 35
OECD MEMBERS UNITED STATES AUSTRALIA WORLD
36 32
49 56
Number of workers per retiree
Working
Population
15-19 10-14
5-9 0-4
6 5 4 3 2 1
0 1
2 3 4 5 6
Millions
DOMINIC BROWN Head of Australia & New Zealand Research dominic.brown@cushwake.com
2035
2015
7
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