Longer working lives could boost economy by €15bn
Ireland’s economy could be boosted by around €15bn over the next 20 years or so if more people over the age of 55 were working, according to a new study by PwC.
The survey of OECD members ranks Ireland in the bottom half — and well below the likes of Britain, the US, and Germany — in terms of employment rate for its citizens in the 50-plus age bracket.
Although it has steadily been rising over recent years, Ireland’s score in the index stood at 60.1 points at the end of 2015; the most recent year for which data is available. Putting that into perspective, Iceland tops the latest table, with a score of 98.8. PwC said that in the long-term — roughly
meaning
the next 20 years — combined GDP of OECD members could grow by $20tn if workforce ages increased.
“Between 2015 and 2035 the number of people aged 55 and above in high-income countries will grow by almost 50% to around 538m,” according to John Hawksworth, chief economist at PwC.
“Rapid population ageing is putting significant financial pressure on healthcare and pension systems. To offset these higher costs, we think older workers should be encouraged and enabled to remain working for longer. This would increase GDP, consumer spending power and tax revenues,” he added.
PwC Ireland’s Gerard McDonough said: “Flexible working policies can incentivise women to remain in work longer, so having the right policies in place will increase the employment rate of those over 55 and may help to reduce the gender pay gap which is shown to increase with age. The life experience of older workers and the skills they have acquired throughout their career make them hugely valuable to the modern workforce.”
