Ageism as a problem of labour markets in advanced economies

Contrasts are very normal aspects in our societies. People are of different income, gender or
age. A problem arises when such contrasts are too pronounced and thus contribute to a
creation of inequalities and discrimination. One specific example can be found in the context
of advanced economies. Due to their stagnating population, there is a building pressure on
labour markets and its actors. To tame this pressure, governing bodies are finding ways how
to keep them stable by identifying potential risks and opportunities stemming from
inequalities. One of those potentials is ageism which can be defined as the stereotyping,
prejudice about and discrimination against people on the basis of their age1.
Ageism is a palpable problem needing more attention from policy makers, general public
employers and other stakeholders. The best way how to solve it is to accept a new normal and
stop stereotyping.

As the fertility rate in most advanced economies is getting lower (G7 countries accounted for
1.61 births in 20202), employers are bound to see less young people entering labour markets,
which is going to create imbalances that can have far-reaching effects on the whole economy.
Priorities of work force in advanced economies have shifted significantly and the need to
establish families is not anymore seen as a main goal for a majority of new generation, thus
policy makers cannot rely on increases in fertility. There are of course means how to combat
such a problem, the most natural one appears to be foreign workers. However, this shows to
be in conflict with national interests, meaning protecting the market from a sudden influx of
cheaper labour force could have a negative impact on domestic workers, as well as in conflict
with interests of populistic politicians whose proclamations are giving birth to xenophobic
attitude in the society – a raise in populistic movement can be seen across Europe, including
the Czech Republic. There is yet another solution to this which would exclude any foreign
element and that is the potential of aging workers.

1 UNECE. Combating ageism in the workplace is key for the sustainable future of work. UNECE [online]. [vid.
2021-10-29]. Dostupné z: https://unece.org/population/news/combating-ageism-workplace-key-sustainable-
future-work.
2 Pew Reaserch Center. G7 nations stand out for their low birth rates, aging populations. Pew Reaserch Center

[online]. [vid. 2021-10-29]. Dostupné z: https://www.pewresearch.org/fact-tank/2019/08/23/g7-nations-stand-

out-for-their-low-birth-rates-aging-populations/.
Stronger participation of older workers would remedy the stagnating state of labour markets
and offer new opportunities which were hidden behind ideas we have about aging due to
stereotypes. It is estimated that if member countries of OECD increased the employment rate
of those aged over 55 to match that of New Zealand (where it is highest), this could boost total
OECD GDP by around USD 3.5 trillion in the long run. 3 While it was normal for older workers
to leave the labour market in the previous decades as their health worsened, the work
spectrum and working conditions are very different now. The quality of life in advanced
economies is raising and so is the life expectancy.4 People are not only living longer lives, but
also more comfortable ones, calmer and less impacted by disease. The vitality and „inner
age“ is not the same as chronological age – this is what the society needs to realize. Judging
one’s abilities solely by age has become an obsolete point of view that prevents people from
prolonging careers and from offering valuable insight which the younger workers might lack.
There are voices arguing that if employing older workers was that effective, companies would
already start doing it in the pursuit of productivity and profits. Although it appears to be a
good argument, it is still important to have on mind the weight stereotypes have on people
and on the way of their thinking. Job participation of women reflects this perfectly – centuries
ago, it was unthinkable to hire women for jobs, yet it is indisputable that their presence in the
market was and is beneficial. Diversity in workplaces brings fruits, people need to accept that
and experience another paradigm shift. Changes indeed fuel evolution.

Ageism is a real problem and should not be omitted by policy makers as it is an effective tool
how to combat imbalances in labour markets of advanced economies. The pace of change in
advanced economies is rapid – demographical trends suggest a lack of future work force, but
longevity and better health dispositions are present. Older workers live different lives than
their ancestors, therefore their working capacity exceeds the one expected by major society.
To correct this misconception, we need to end stereotypes, accept the new normal and find
positive potentials within it.

3 UNECE. Combating ageism in the workplace is key for the sustainable future of work. UNECE [online]. [vid.
2021-10-29]. Dostupné z: https://unece.org/population/news/combating-ageism-workplace-key-sustainable-
future-work.
4 World Health Organization. Ageism is a global challenge: UN. World Health Organization [online]. [vid. 2021-

10-29]. Dostupné z: https://www.who.int/news/item/18-03-2021-ageism-is-a-global-challenge-un.