Midlife career changes enhance work and wealth – OECD study
PARIS, FRANCE — A new study by the Organisation for Economic Co-operation and Development (OECD) strongly suggests that changing jobs mid-career is beneficial for employment prospects and earnings potential.
The report titled “Promoting Better Career Choices for Longer Working Lives: Stepping Up Not Stepping Out,” conducted jointly with nonprofit group AARP, examined data from across OECD nations where workers aged 45-64 now comprise 41% of the labor force.
“Older workers who change jobs voluntarily typically experience improvements in wages and the quality of working environment,” the report noted.
“Mobility can support worker reallocation to growing industries, thereby promoting economic growth and reducing the risk of unemployment.”
The research revealed that if an employee aged 45-54 switched jobs, there is a 62% chance that they will still be employed when they reach 60.
In contrast, the likelihood that a 60-year-old who did not experience a mid-career job change is still employed is about 54%.
60% of low-skilled workers who change occupations switch to another low-skilled and poorly paid job.
Find out what governments and employers can do to improve #CareerMobility and help them transition to better-paid and good-quality jobs.
➡️ https://t.co/wRJ1wdaXtP pic.twitter.com/a0czJee6Ug
— OECD ➡️ Better Policies for Better Lives (@OECD) March 15, 2024
Data from the Pew Research Center showed about 19% of Americans aged 65 and above were employed in 2023, marking a significant shift in the American workforce in 35 years.
These senior workers are not just more in number; their salaries have also increased, with an average worker aged 65 or older earning $22 per hour. This is a significant jump from the $13 hourly wage in 1987.
The increasing wage among older workers also narrows the gap between younger workers aged 25 and 64.
Meanwhile, ResumeBuilder.com revealed that one in eight (12%) American retirees are likely to rejoin the workforce in 2024 due to inflation and increased cost of living.
Highlighting corporate efforts, CEOs Patrice Segui of BNP Paribas Portugal and Laurent Bataille of Schneider Electric France shared their strategies for supporting the 50+ workforce, including midlife career reviews, upskilling opportunities, and initiatives aimed at enhancing job flexibility and diversity.
As global workforces gray, the OECD urges businesses and governments to dismantle obstacles to midlife transitions. Creating dynamic, age-inclusive labor markets will be crucial for sustained economic growth and individual prosperity.
An earlier study by The Coven revealed that 95% of employers lack strategies to ensure an age-inclusive culture, though 83% believe their workplace already is.
