Future of an Ageing Population

Box 2.1: Special circumstances relating to Small and
Medium Enterprises (SMEs) and older people
Certain types of employment may be accompanied by specific challenges
when addressing barriers to working longer. 41% of workers aged 65
and over are self-employed, compared to 15% across the whole working
population 49 . A third of workers in SMEs are over 50 50 . Both are becoming
more common types of employment across the whole population 51 . SMEs
may lack the resources or scale needed to provide training 52 or support
the changing needs of older workers, for example to implement major
health initiatives and provide occupational health support 50 . Similarly the
self-employed, particularly sole-traders, may face difficulties due to a lack
of support services 32 .
2.4 The importance of skills to the ageing workforce
There are broader shifts in the labour market which are vital to understanding
the implications of an ageing population for work and productivity. Important
trends include the growth of the service sector, computerisation, globalisation,
and increasing workforce diversity. Perhaps the most significant driver of
changes to the future world of work will be advances in technology, such as
automation, machine learning, big data, the internet of things and the digital
economy 53 . These changes may affect how people work, where they work and,
in cases where functions become fully automated, whether they work at all.
Some analysts suggest 35% of jobs in the UK are at risk from automation 54 ,
with certain sectors particularly vulnerable (see Figure 2.7). The rates of
change, the types of jobs that are replaced and the extent of job creation
through new technologies are all uncertain. However, evidence suggests that
lower paid jobs are five times more likely to be replaced than those with higher
pay. In a study of future employment in the USA, jobs requiring high levels of
creative or social intelligence were at much lower risk 54 .
As working lives get longer and the pace of change increases, it is likely that
individuals will have to adapt to more frequent and significant changes during
their working lives. One of the key determinants of older workers’ employment
and productivity will be their ability to adapt to these changes, including retraining
and re-skilling H , particularly as early life education may not provide the
skills to sustain longer and fuller working lives.
H For example, the Department for Work and Pensions Fuller Working Lives strategy describes the
importance of three Rs - Retain, Retrain, Recruit.
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