Aging populations pose a potential drag on labor force growth, yet older people are working for longer in many advanced economies. Analysis by Olivia White, a senior partner and a director of the McKinsey Global Institute, and colleagues shows that some countries are projecting as much as a 15 percent rise over the next decade in labor force participation among workers aged 55 to 64. Increased participation in some of these economies may reflect shifting pension policies and attitudes toward retirement.
Image description:
Eight sets of vertical bar charts, 1 for each of the highlighted countries, plot the labor force participation rate of 4 age cohorts: 15–24, 25–54, 55–64, and 65+. Each cohort has 3 bars, showing the rate across 3 years: 2010, 2023, and a 2030 scenario assuming continued growth at historical rates. The bars increase in height for the 2 older age cohorts across all countries. The bars mostly increase for the younger age cohorts, with some decreasing in 4 of the countries.
Source: International Labour Organization; UK Office for National Statistics; McKinsey Global Institute analysis.
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To read the article, see “Help wanted: Charting the challenge of tight labor markets in advanced economies,” June 26, 2024.