The vital question of what constitutes a socially and economically sustainable Australia has emerged as one of the talking points of the 2010 election campaign. But there’s a problem. Our pollies are focusing on population size, when size isn’t the only thing that matters.

Ditching Kevin Rudd’s vision for a “big Australia”, Julia Gillard has instead linked rapid population growth to a decline in quality of life. And Tony Abbott has jumped on the “small Australia” bandwagon with budgie-jiggling enthusiasm, offering to turn back boatloads of refugees and reduce Australia’s net migration from nearly 300,000 people per year to just 170,000.

If implemented, these policies have the capacity to exacerbate the challenges posed by Australia’s ageing population, both in the workplace and beyond. Therefore, boys and girls in the RTW industry would do well to emulate the motto of the Scouts and Guides: “Be Prepared”.

To date, the response from business to Abbott and Gillard’s populist policy-making has ranged from lukewarm to downright feisty. In April, The Australian reported that Heather Ridout of the Australian Industry Group welcomed a national discussion about population. However, business groups have also indicated that they will “fight a cut to immigration numbers on grounds it will threaten Australia's productivity”.

Governmental research suggests that there is good reason to be concerned about the emphasis on population size, to the exclusion of other factors that influence economic and social sustainability. According to the 2010 Intergenerational Report, economic growth is a function of the “3Ps”: productivity, participation and population. The election-year focus on population size is in danger of obscuring the influence that productivity and participation have on economic growth, and therefore the Australian lifestyle.

Over the next several decades, Australia’s proportion of older workers will increase sharply. In 30 years time, it is estimated that there will be just two people of working age for every person 65 years and over. (The ratio is currently 5:1.) This means that the proportion of Australians who contribute to Gross Domestic Product (GDP) will drop. Already, the proportion of mature-age Australians who participate in the workforce is “below that of comparable countries, including the United States, United Kingdom and New Zealand”.

Migrants—both skilled and unskilled—tend to be younger on average than Australia’s current residents. Therefore, reducing migration may also reduce the rate of participation, as less young workers from overseas enter the workforce here. This puts economic growth in jeopardy; hence business disquiet about Abbott’s population policies.

Yet demographics are not the sole influence on participation. Many mature-age Australians have a choice about whether they remain in the workforce or retire from it. The Intergenerational Report identifies six key factors that influence this kind of decision making:

1. Health outcomes;
2. Educational attainment;
3. The tax-transfer system;
4. Cultural attitudes;
5. Workplace flexibility; and
6. Access to retraining and support services.

The tax-transfer system is outside the sphere of workplace influence, but arguably the workplace can have an impact on the remaining five factors.

Health outcomes can be influenced via OHS practices, RTW processes and workplace health and wellbeing programs. Employees can be encouraged to engage in lifelong learning, and have their studies accommodated in the workplace. Internal cultural attitudes—including the organisation’s level of inclusiveness and perspective on age-based discrimination—can shore-up, ameliorate or influence broader cultural attitudes. Flexible workplaces can facilitate gradual retirement, and make the most of the knowledge and skills only older employees can bring. And efforts can be made to provide support and a sense of hope about future employment prospects for those who are made redundant.  

Professionals in the field of RTW will also be well aware that many employers equate an ageing workforce with lower productivity. However, dealing with the factors that discourage mature age workers from remaining at work will also help employers get the most out of their older workers.

If Australia does opt to reduce migration, embracing the ageing workforce becomes imperative.

Over the next few months, RTWMatters will be pondering the issue of work and age. Look out for practical articles as well as opinionated musings, as we rush in where Gillard and Abbott—perhaps to Australia’s detriment—so far fear to tread.