The Asia Pacific region is experiencing rapid ageing, putting it at the forefront of one of the most significant global demographic trends. In this article, we consider the drivers behind ageing workforces across several countries in the Asia Pacific region and how government policy in this area is evolving. These shifts present a range of opportunities and challenges for employers, and we identify a range of steps organisations can take now to respond and adapt to these shifts.
The world of work is changing continuously and at an unprecedented pace. Advances in technology, evolving social values, migration and globalisation are dramatically reshaping work, workplaces and workforces. One significant driver of change is the long-term, predictable trend of ageing populations and ageing workforces across the globe. This trend is driven by two powerful and persistent shifts – longer life expectancy and falling birth rates. Taking steps now to respond presents a huge opportunity for employers, bringing competitive advantage by solving skills gaps, improving retention and boosting productivity.
The landscape of ageing populations in the Asia Pacific region
Asia is at the forefront of this trend, with Hong Kong, Japan and South Korea projected to have the highest share of people aged 65 and above by 2050. The International Labour Organisation has described the rate of population ageing in Asia as "alarming", and writes that the region's population will age as much over the next 27 years as the populations in high-income countries in the rest of the world have aged over the past 60. Its overall labour force participation rate is also predicted to fall from 61 percent in 2023 to 55 percent in 2050, owing to the rapidly increasing number of people aged 65 years and above as a share of the total population.
In response, we have seen a shift of government focus in recent years away from policies promoting early retirement, towards an emphasis on extending working lives in order to address the risk of societies growing old before they are able to amass sufficient resources to adequately support their ageing populations.
Below we explore the ways in which government policy across China, Hong Kong, Japan, South Korea and Singapore is evolving to tackle this demographic challenge before considering what opportunities and challenges that presents for employers.
What measures are governments introducing to respond to changing demographics?
Older workers are vital to economic health, as shown by various government interventions across the Asia Pacific region. Click below to see specific measures taken by each country.
China and Hong Kong
China has one of the fastest growing ageing populations in the world. Due to longer life expectancy and low fertility rates, the World Health Organisation estimates that by 2040, 402 million people or 28% of China's population will be over the age of 60.
Changing attitudes to finding jobs, particularly among the youth, also presents particular challenges for governments against the backdrop of an already shrinking labour market and rapidly ageing population. Hong Kong and China's governments have introduced a range of measures to address the problem of 'too many old people and too few young workers to support them'.
Drivers of shrinking and ageing populations
Like many economies around the world, China faces the problem of having more people set to retire than people entering the workforce to replace them. However, unlike other developed western economies, it is growing old before it has gotten rich thanks to decades of birth restrictions under the former one-child policy (1980-2015). By 1991, China's replacement rate had already fallen below the level needed to maintain a stable population.
With less people getting married and fewer births, labour pools are shrinking as current workforces approach retirement. There are fewer workers to support more retirees, and concerns about labour and skill shortages remain high on the agenda of policy makers and employers.
Apart from the residual impact of the One Child Policy, China's looming demographic crisis is also being driven by an increasing aversion among young Chinese to having kids. Increasingly high costs of living, the rising popularity of the 'dual income, no kids' lifestyle, uncertainty about the future, and record-levels of youth employment are all contributors to why many young Chinese are opting out of having children.
Another growing lifestyle choice among young Chinese born in the late 1990s and 2000s is 'lying flat' or 'tang ping' in Chinese - a social movement that came about as a means of protest against demanding work culture and excessive societal expectations. The 'Lie-Flat Movement' has been described by academics as "a deliberate renunciation of the conventional pursuit of wealth, marriage, and consumption, (to) instead adopt a minimalist, simplified attitude to life". Similar to the trend of 'quiet quitting' in the United States, to 'lie flat' is to do the bare minimum at work or choose not to work at all. It stems from increasing dissatisfaction among the younger population, frustrated by limited social mobility and broken promises of reward and 'success' for running the rat race.
Overall, we are seeing the effects of economic slowdown, together with an oversupply of university graduates and limited roles in the desired (skilled) sectors to absorb them, leading to record high youth unemployment rates in China. The jobless rate for people ages 16 to 24 rose to its highest recorded level (since the National Bureau of Statistics adjusted its reporting metrics to exclude students in December 2023) of 18.8% in August 2024, but since dipping to just below 17% in March 2025.
In Hong Kong, a 2024 survey conducted by the Employees Retraining Board revealed a lack of incentive among youths to engage in employment, with over a third of the younger respondents who were not working or studying having no future plans to find a job. Lack of financial urgency and being unable to face work pressures were cited as influencing factors for not wanting to work. The prospect of competitive remuneration, flexible working hours and remote work options were only incentives for some to take up work.
What measures are governments taking?
Rising retirement ages and revisiting retirement policies
China is raising its retirement age amid a shrinking labour market and a cash-strapped pension system, which the Chinese Academy of Social Sciences has predicted will dry up by 2035 if drastic measures are not taken.
From 1 January 2025, China will start gradually raising the retirement age over the next 15 years. For men, the retirement age will be increased from 60 to 63. For women, the retirement age will also go up: women in blue-collar jobs will see their retirement age rise from 50 to 55, while women in white collar jobs will see it increase from 55 to 58.
In addition, from 1 January 2030, the minimum number of years an employee must contribute to the pension system before they can receive pension benefits will gradually increase from 15 to 20 years. This increase will take place incrementally every 6 months.
If an employee completes the required years of pension contributions before reaching the new retirement age, they may be allowed to begin receiving pension benefits —up to three years before the new retirement age—but not before the original retirement age.
China's current retirement ages are currently among the lowest in the world, and have not changed since they were first implemented in the 1950s. The Chinese minister of human resources and social security has said that the reform was necessary (and long overdue) in circumstances where China's economic, social and demographic situations, as well as societal values have changed enormously over the past 70 years.
In Hong Kong, while there is no statutory retirement age, some employers require their staff to retire between the ages of 60 to 65. Given Hong Kong's ageing population problem, governments and employers are being urged to rethink their retirement policies in order to leverage older workers to boost productivity and narrow employment gaps.
Introducing pronatalist measures
In 2016, the Chinese Government raised the birth cap to two children, and again to three children in 2021 as part of its pro-birth drive to quell the looming demographic crisis. However, fertility rates continue to plummet, and China's population continues to decline, a trend which some observers say is getting close to "irreversible". A prominent gender imbalance and changing attitudes among young people - a sex ratio skewed towards males, fewer women of childbearing age, and people choosing to get married and have children later in life (if at all) – have led to China's population shrinking for the first time in 60 years in 2022, and again in 2023 and 2024 for three consecutive years as the number of deaths rose and birth rates hit an all-time low.
The United Nations anticipates that China will likely experience the largest absolute population decline of any country in the world, shrinking by 204 million people between 2024 and 2054, and 760 million people through the end of the century. By 2100, China is projected to have lost more than half of its current population of around 1.4 billion, returning to recorded 1950s population levels.
Similarly, in Hong Kong, the fertility rate is at an all-time low prompting the Government to roll out a series of pronatalist measures including a cash bonus of HK$20,000 for each newborn. The number of unmarried persons in Hong Kong has also increased following the general trend of marriage postponement or non-marriage over the past few years. Further, the proportion of elderly persons aged 65 and over is projected to increase from 20.5% in 2021 to 36% in 2046. By 2050, Hong Kong is projected to have one of the oldest populations in the world with the highest share of people aged 65 and above.
Extending working lives
In Hong Kong and China, we are starting to see a shift towards extending working lives. This is reflected in a recent report published by The Hong Kong Labour and Welfare Bureau, which predicts a manpower shortage of 180,000 people by 2028 with labour-intensive sectors including construction, city operations, health services, accommodation, food, retail, tourism as well as innovation and technology expected to be the hardest hit. To address the prevailing manpower shortages, the Hong Kong Labour Department recently launched a three-year Re-employment Allowance Pilot Scheme to incentivise 'elderly and middle-aged' people to rejoin the workforce. By expanding the potential labour force to meet the immediate needs of employers, and encouraging experienced workers to return to the workforce, the scheme is expected to enhance overall workforce productivity and provide economic benefits through increased employment and consumer spending.
Regional governments across China are actively promoting old(er)-age labour force participation, including the Shanghai Government, which recently proposed measures to strengthen the training system for reemployment, increase resources to facilitate labour force participation of older talent, and protect the rights and interests of older persons in the labour force.
Japan and South Korea
Low birthrates in Japan and Korea have been declared "quiet" and "national" emergencies respectively by the country's leaders. In a policy speech in October 2024, Prime Minister Shigeru said that Japan's low birth rate and resulting population decline was a "challenge to the very foundations of the country"; while earlier in May 2024, former President Yoon Suk Yeol said he would dedicate his term to improving the Korea economy by "mobilising all of the nation's capabilities to overcome the low birth rate".
Social infrastructures such as pension and health care systems in Japan and South Korea will be difficult to maintain as a result of their shrinking populations and workforces. While some of their policies have made positive strides, current measures have not been sufficient to reverse the trend of population decline – something experts say will require ongoing and more radical solutions, including policies more focused on gender equality and providing longer-term financial assistance beyond pregnancy and early childhood.
In any event, reversing the ageing trend in Japan and South Korea will require long-term commitment, and may even take decades. However, the future may not be as bleak as governments fear with some experts offering a more optimistic view – one where population decline and economic prosperity can coexist or where fewer people could mean less competition for university admission and jobs. While shrinking populations are typically associated with less economic growth, some experts say it is not the size of the population but the quality of societal contributions that drive sustained economic advancement. Investing in education, innovation and expanding workforces to include more elderly, women, migrants and even robots could very well form the foundations of the emergency response plans Japan and South Korea need to mitigate the long-term effects of their shrinking populations. According to the International Monetary Fund, the combined effects from a higher labour force participation rate, more efficient allocation of resources, and expanded AI adoption "can more than fully offset the economic drag from ageing."
Drivers of shrinking and ageing populations
South Korea currently has one of the lowest fertility rates in the world, dropping to a record low of 0.72 in 2023 from 0.78 in 2022. In 2024, the birth rate rose for the first time in nearly a decade to 0.75 but experts warn that the uptick in births is likely to be short-lived with the long-term outlook remaining bleak.
The fertility rate in Japan has also reached a record low falling for the ninth consecutive year from 1.20 in 2023. In 2024, Japan logged 720,988 births down 5 percent from the previous year.
In general, countries need a fertility rate of 2.1 children per woman to maintain a stable population. However, urbanisation, rising costs of living, changing attitudes towards marriage, gender inequality, youth disillusionment, high costs of education, and limited access to childcare have all contributed to plummeting fertility rates in Japan and South Korea – both amongst the top three most expensive nations in the world to raise kids.
Population decline as a result of low birth rates and ageing has become one of the countries' most pressing issues, with governments grappling to avert catastrophic consequences on their respective economies, social security systems and workforces.
By 2050, it is projected that Japan's current population of around 122 million will decline to 100 million, while South Korea's population is expected to decrease from 51.6 million to 46 million. Domestic labour forces are projected to decline even faster than the overall populations.
While both nations have introduced new measures and legislation to try and reverse their respective population crises, it could very well be a case of 'too little too late' with some experts describing the situation as 'not reversible'.
What measures are governments taking?
Introducing pronatalist policies
Governments in Asia have reportedly spent hundreds of billions of dollars trying to address low birth rates, but numbers continue to plummet in Japan and South Korea.
Japan has implemented several pronatalist measures including financial incentives and subsidies to families for childbirth and child-rearing. New legislation was recently introduced to boost childcare support through the scrapping of an income threshold to be eligible for child allowance and other incentives. Additionally, in May 2024, a new law aimed at providing flexible work options for employees with young children was passed. Since April 2025, companies are now required to offer at least two flexible working options for employees with preschoolers aged three and above. These options may include remote work, shorter hours, or staggered hours. Efforts must be made by employers to allow parents with children under three to work from home, with the revised law also extending exemptions from overtime and childcare leave for sick children. In order to assist the government in evaluating the efficacy of its pronatalist policies, employers are now subject to parental leave utilisation reporting. Employers with over 300 employees are required to disclose the percentage of male employees taking childcare leave, and those with over 100 employees to establish targets for such leave.
Similarly, South Korea has introduced various measures to encourage people to have children, such as an increase in parental leave allowances, more flexible work hours, and incentives such as childcare, after-school programs, and tax subsidies to relieve the financial burden of parents and encourage shared parenting responsibilities. On 26 September 2024, amendments to the Gender Equal Employment and Work-Family Balance Act and the Labor Standards Act were passed. Amendments include enhanced maternity, paternity, and childcare leave entitlements which took effect on 23 February 2025. Of note, childcare leave has increased from one year to one and a half years for single parents, parents of a child with a severe disability, or where each parent takes more than three months of childcare leave. Reduced working hours for childcare can also be used for children up to 12 years old instead of the previous eight. Paternity leave has increased from 10 days to 20 days, and maternity leave for premature babies has now been increased to 100 days from 90, while infertility treatment leave is increased to six days from the current three days. Housing assistance programs aimed at providing more affordable housing for young families have also been introduced.
There have also been aggressive social campaigns to promote the benefits of marriage and family life in both nations alongside measures to support young people, such as education and employment opportunities to improve job security and provide better career prospects. Programs aimed at women in the workforce, including initiatives to reduce gender discrimination and enhance career progression have also been launched. However, the effectiveness of these policies have been varied with birth rates still lower than ever before. For example, although access to childcare has improved, many families still face long waiting lists; and while efforts have been made to promote work-life balance, strong cultural norms around long working hours persist, making it difficult for parents to balance work and childcare responsibilities.
For women, although there has been progress in increasing their participation in the workforce, gender inequality issues remain, with many women still facing challenges in career advancement due to culturally entrenched gender roles and expectations. The Economist's 2024 Glass Ceiling Index, which assesses which OECD nations offer women the best opportunities for equal treatment in the workplace, ranked Japan and South Korea in third last (27th) and last place (29th) respectively out of 29 countries.
Increasing support for immigration
The issue of population decline as a result of low birth rates and ageing populations is not unique to Asia, but unlike other developed economies in the US or Europe, Japan and South Korea have shunned immigration in the past as a means to grow their respective populations. In more recent times, however, Japan and South Korea have both increased support for immigrants, introducing policies to attract foreign workers to help mitigate labour and talent shortages.
Japan has traditionally been conservative in its immigration policy and ex-patriates have found it difficult to secure long-term working visas in Japan. However, in 2019 Japan introduced the Specified Skilled Worker Visa scheme, which offers a pathway for foreign workers to fill labour shortages in certain sectors including nursing, hospitality and construction. The government has also expanded eligibility for permanent residency, and increased support for foreign workers through various language and integration programs to encourage longer-term settlement and a more stable workforce. Due to these reforms and initiatives, the number of foreign nationals in Japan increased by 11 percent from 2022 to 2023 and now comprises over three million people, the highest number in its history. Still, Japan's attractiveness to skilled foreign workers remains hampered by factors such as comparatively low international wages, a stringent tax regime, and a demanding work culture.
South Korea is also focusing on attracting skilled workers through programs such as the Korea Immigration Service's points-based system, which evaluates foreign talent based on education, work experience and language proficiency. Specific visa categories, such as the Employment Permit System, which gives foreign workers a pathway to fill roles in sectors facing labour shortages such as manufacturing, agriculture and construction have also been introduced. The impact of these policies is reflected in recent immigration statistics released in December 2024, where for the first time, the number of foreign workers in South Korea exceeded 1 million. To encourage longer-term settlement, the government has also recognised the importance in providing support for integration as well as policies to allow foreign workers to bring their families with them.
Despite long-held perceptions of Japan and South Korea being ethnically homogenous and xenophobic nations, there has been a general acceptance of the governments' pro-immigration policies, though complaints from foreign nationals facing racism and discrimination are still common.
While the gradual easing of immigration restrictions has seen some success in filling labour shortages, these measures have not significantly offset the population decline. Further, many of these policies have typically centred on filling low-wage, low-skilled positions which experts warn could exacerbate labour market imbalances if not carefully managed.
According to a researcher at the Korea Small Business Institute, although foreign labour is essential to offset the country's shrinking working-age population, it is critical to direct foreign workers to unfilled positions while protecting jobs for domestic workers including young job seekers and elderly workers. Although foreign workers can help to address the talent shortage in low-wage roles, systems to enable wage progression and better working conditions will be essential in ensuring stability of the labour market over time.
Encouraging older workers
One of the ways governments are attempting to mitigate shrinking workforce numbers and skills shortages and alleviate pressure on social security systems is to enable the elderly to remain in, or re-enter, the workforce. As a result, there has been an increased focus from governments on improving working conditions for older employees.
Japan reportedly has the highest number of seniors working past retirement in the world, followed by South Korea where more than half of individuals aged 65-69 are still in employment. The Japanese government is actively encouraging employers to improve senior employment by securing employment opportunities for workers until the age of 70, through legislation such as the Revised Law Concerning Stabilization of Employment of Older Persons and various other subsidy programmes. We are also seeing more employers introducing policies that enable employees to extend their retirement age without losing their retirement benefits.
In South Korea, 60% of the population aged 55 to 79 are currently employed – the highest labour force participate rate among this age cohort since data collection began in 2005. Various factors contribute to the rise in working seniors including longer life expectancies, while increasing costs of living and less young people to support them are motivating seniors to remain in the workforce longer.
Singapore
Singapore is one of the fastest ageing nations in the world. In order to address the needs of its ageing population and alleviate pressure on its social systems, the government plans to aggressively tap technological developments and extend working lives to allow the elderly to remain in the workforce longer.
Singapore's fertility rate hit a record low in 2023, falling below 1 for the first time in the Republic's history. This, coupled with longer life expectancies mean that Singapore has an ageing population without a young base to support it.
What measures is the government taking?
Raising retirement ages
To tackle these demographic challenges, Singapore plans to raise the retirement age from 63 to 64, and the re-employment age from 68 to 69 in 2026. Meanwhile, speaking at a Population Association of Singapore conference in May 2024, Minister Indranee Rajah said that in addition to allowing seniors to remain in the workforce longer, the Republic should tap technological developments to address the needs of its rapidly ageing population.
Leveraging automation and AI
Like many global economies, Singapore has embraced and invested heavily in automation as a key strategy to tackle workforce shortages, particularly in the manufacturing, logistics, and services sectors. Automation in the manufacturing sectors has been supported by initiatives such as the Industry Transformation Maps launched in 2016, which encourages businesses to adopt advanced technologies to meet evolving market demands.
In 2014, the government launched the Smart Nation Initiative to harness technology and data to improve the quality of life for its citizens and drive economic growth. Key aspects of the initiative include support for digital transformation across various sectors including healthcare, education and transportation, as well as supporting research innovation and growth of tech startups to foster Singapore's digital economy.
In order to assist companies in their automation adoption journeys, the government offers various grants and funding schemes, such as the Productivity Solutions Grant, to offset some of the costs associated with adopting new technology.
Support by way of upskilling and skills development programs in areas such as AI, data analytics and robotics have also been introduced to help workers transition into new roles created by automation. Initiatives such as SkillsFuture launched in 2015, encourage lifelong learning and enable workers to adapt to new technologies.
Singapore also recently updated its national AI strategy recognising the need to "master AI to overcome our labour and productivity challenges". It launched the world's first Model AI governance Framework in 2019, positioning itself as global leaders in AI with plans to raise the pool of AI talent, uplift the AI capabilities of its industries and workforce, intensify the promotion of AI adoption across all enterprises, and upskill its workforce through sector-specific AI training programmes.
Through these initiatives, Singapore is not only addressing immediate workforce shortages but also establishing itself as a leader in innovation and productivity in the long term.
Reskilling older workers
As working lives get longer, individuals will have to adapt to the increasing pace of change. For example, 50-year careers will become the norm rather than the exception, and employees may choose to make radical career choices or change direction and seek fresh challenges in their later lives. Automation and AI are having a growing impact on jobs and job roles - while some jobs may be displaced, new jobs and skills will also emerge for which people need to be reskilled and retrained.
In particular, some elderly workers may struggle to adapt to new technologies. Researchers say that although automation is freeing workers from routine tasks, older workers may feel threatened by new automation advances which generate skill mismatches. It is, therefore, critical in the context of ageing and in developed economies, such as Singapore, which are moving towards knowledge-intensive activities, to provide pathways to continuous upskilling of workers who wish to extend their working lives.
Singapore has clearly recognised the challenge of ensuring individuals obtain the skills they need to progress in work, redirect their careers and secure the jobs of the future through its various initiatives. For example, through establishing adult learning systems to tackle skills obsolescence and maintain the employability of older workers.
What are the opportunities and challenges for employers?
Despite the predictable nature of age demographic shifts and their potential to radically disrupt the future of work, many employers admit they are unprepared to meet the challenges and harness the opportunities this presents– 71% of employers rated the impact of ageing workforces as having a low impact on their workforce planning and HR strategies in 2024 in our recent future of work report.
Shifting workforce attitudes are also heavily impacting the labour pools which are available to employers. Employee expectations continue to grow – rising most significantly among employees under the age of 40 – with many young people re-evaluating what "work" means.
Employers will have to adapt by adjusting recruitment, retention and development strategies to respond to the priorities and pressures facing older workers and shifting workforce expectations.
What steps can employers take to respond to ageing workforces?
As government policy continues to evolve to encourage people to remain in employment longer, workforces are becoming increasingly multi-generational. Employers will need to adjust to this demographic transition to ensure resilience and future growth. This will require a re-evaluation of recruitment and retention strategies, as well as a review of existing company initiatives they have in place that are designed to support older workers and address changing workforce expectations.
Managing multi-generational workforces
Different generations are often ascribed divergent values and characteristics influenced by the circumstances and key events of their generation. However, many employment practices that are highly valued by older workers are, in fact, beneficial for all, even if their motivations are different. For example, flexible working arrangements and support for health and wellbeing alongside training and development may be particularly attractive to older workers. Yet these same arrangements are also valued by those with caring commitments, and younger workers who increasingly look to build flexibility into their life.
Rethinking work and designing inclusive workplaces that appeal to employees at different life stages will enable employers to take advantage of the benefits of a multi-generational workforce, such as increased resilience and innovation, attracting and retaining the best people, productivity, and diversity of skills and perspectives.
- Age inclusive workplace policies that accommodate varying generational needs, including inclusive recruitment to access untapped pools (e.g. older workers), retirement planning and succession frameworks, age-neutral promotion policies and structuring benefits across age-groups.
- Flexible working opportunities and policies with more options for leaving and coming back to the workforce at different life stages
- Improving job quality across age groups in the workplace
- Reverse mentoring and cross-generational collaboration as a tool to grow generational intelligence
- Training for HR, line managers and leadership on age inclusion and multi-generational workforces
- Tackling age-based discrimination in the workplace and addressing negative stereotypes
- Health and wellbeing support, financial advice and non-monetary benefits (e.g. continuous learning opportunities) for employees across the workforce
Reskilling and retraining
The fast pace of technological change often leads to a gap between the skills workers possess and the skills required by employers as organisational strategies evolve. Employers are increasingly focussed on retaining, reskilling and attracting older workers as companies reportedly struggle to find the people with the skills they need.
- Upskilling and reskilling opportunities across the workforce, including digital and data skills
- Intentional skills sharing opportunities between younger/older workers
- Returnership/re-hiring opportunities and alumni groups
- Support for career transitions and skills growth to increase job longevity
- Career check-ins and career aspiration conversations across generations
- Skills-based hiring rather than focus on traditional degrees
- Financial incentives to support employees in pursuing education and training
Understanding organisational data
Employers in the Asia Pacific region are increasingly leveraging workforce data to understand and address the risks and opportunities posed by ageing workforces. It is important to understand the demographic make-up of the workforce and identify areas of risk (for example, losing tacit knowledge and experience as older workers leave the business) and opportunity (for example, leveraging alumni networks and introducing returner/re-entry programmes). Mapping skills across the workforce will help identify skills gaps and opportunities for internal job switching/lateral moves. Employers can collect and monitor data on the needs of older workers, and measure engagement of different age groups across the workforce to better understand challenges and emerging themes.
- Analyse data to understand age distribution in the workforce and plan for future staffing needs, forecast retirement trends and plan for succession
- Monitor health data across the workforce to identify areas for targeted wellness programmes
- Analyse workforce data to identify skills gaps and develop training programmes
- Conduct surveys to gather insights on the needs and preferences in the workforce
- Use data to assess the quality of jobs and identify areas for improvement
Health and wellbeing
Policy approaches of raising the retirement age or state pension age or other measures to extend working lives assumes that the person has the requisite health and skills, motivation and employment opportunities to enable them to work for longer. In many cases, there is increasing reliance on employer solutions to support health and wellbeing– 66% of employers said they are feeling pressure to improve support for workforce wellbeing and financial health in our recent future of work report.
- Age friendly workplace practices, such as ergonomic adjustments and flexible working
- Regular health check-ups and fitness initiatives
Advances in technology
Advances in technology and the rate of adoption will play a significant role in influencing the size and shape of the labour market. AI-led transformation will make many jobs redundant, create new ones and fundamentally change many more. Work itself is changing, as are employers' needs, and many individuals will not have the skills needed for the jobs of tomorrow. Employers operating in an increasingly competitive, global labour market will need to work ever harder to attract the best people with in-demand skills. Employers will also need to do a lot more to help the existing workforce develop new skills, or offer support to transition to other roles, to mitigate job losses. Given the speed of technological advancement, employers need to act fast to invest in their people strategies to successfully meet their future needs.
- Adopt remote work technologies to enable flexible working arrangements
- Training across the workforce to adapt to new technologies, including digital skills
- Consider the role of automation and AI technologies to improve productivity and compensate for labour shortages
Conclusion
Ageing populations alongside shifting generational compositions and workforce priorities are driving significant change in the world of work. However, employers appear slow to prioritise taking action to adapt to these demographic changes. Businesses need to assess their strategic exposure to this longer-term risk - taking action now will mitigate the impact and enable employers to flourish in an increasingly competitive and global market. Read our recent article about changing demographics and ageing workforces here.
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