OccupierEdge_Autumn2016_Workforce

Our Changing Workforce

Demographic forces are exerting pressure on the world’s future labor force. Population aging is one of the most significant of these forces, which will a†ect 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 labor 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

Aged dependency to increase

0%

13%

Aged dependency will increase. As populations age, a greater number of retirees will need to be supported by a shrinking labor force.

41%

46%

2035

Japan’s sharp decline in labor force

Japan is forecast to experience a 15% decline in working age population between 2015 and 2035.

Global Rank (2015)

Global Rank (2035)

2015

2035

JAPAN ITALY GERMANY HONG KONG SAR, CHINA PORTUGAL EUROPEAN UNION SINGAPORE UNITED KINGDOM

1 2 5 42 6

1 2 3 4 5

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

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

2.0 2.0 2.2 2.3 2.6 2.6 2.8 3.1 4.9

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

DOMINIC BROWN Head of Australia & New Zealand Research dominic.brown@cushwake.com

6 5 4 3 2 1

0 1

2 3 4 5 6

Millions

2035

2015

7