Closing the Older Worker Learning Gap: An Economic Imperative for Future Workforce

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By Nathan Morgan

The global labor market is undergoing a profound transformation, with technological advancements rapidly reshaping job requirements and skill sets. Amidst this evolution, a critical challenge has emerged: fostering continuous learning and adaptation among older workers. While organizations like the World Economic Forum and the OECD consistently highlight the urgent need to boost the skills of the mature workforce, empirical data reveals a significant disparity in their engagement with lifelong learning, potentially impacting economic productivity and individual career longevity.

  • Older workers exhibit a significant disparity in engagement with lifelong learning.
  • Participation in adult learning, particularly non-formal training, consistently declines after the age of 45.
  • This reduced engagement is primarily driven by a diminished willingness to participate, rather than external barriers like time or cost.
  • Geographic variations in older worker learning engagement are notable, with Nordic nations leading and some European countries lagging.
  • Economic considerations, such as perceived lower return on investment, contribute to the reluctance of both older workers and employers to engage in training.
  • Policy interventions are crucial for upskilling older workers, addressing mobility barriers, combating ageism, and enhancing overall productivity.

The Age-Related Learning Gap

Despite the imperative for continuous skill development, participation in adult learning, particularly non-formal training, consistently declines with age. According to the OECD Employment Outlook 2025 report, approximately one-third of individuals aged 60-65 engaged in adult learning within the 12 months prior to the survey, a stark contrast to over half of those aged 25-44. This trend becomes discernible after the age of 45, where participation rates begin to drop noticeably.

Analysis indicates that non-formal training is overwhelmingly more prevalent than formal learning (training leading to a qualification) across all age demographics. This preference is especially pronounced among older cohorts, with a mere 1% of 60-65 year-olds participating in formal learning initiatives.

Understanding the Underlying Factors

The reduced engagement of older individuals in non-formal learning appears to be primarily driven by a diminished willingness to participate in training, rather than external barriers such as time constraints or high costs. Data suggests that the desire to undertake training falls from approximately 60% among 25-44 year-olds to just 37% for those aged 60-65. Conversely, time constraints are reported as less significant obstacles for older workers compared to their younger counterparts, with only 7% of 55-65 year-olds citing time as a barrier to desired training, compared to 15% for 35-44 year-olds.

Geographic Variations in Engagement

While the pattern of lower older-worker participation in non-formal learning is consistent across all OECD countries surveyed, the extent of this disparity and overall engagement rates vary significantly. Nordic nations demonstrate the highest participation among 55-65 year-olds, with Norway, Finland, and Denmark nearing 50%. In contrast, countries like Poland, Slovakia, and Hungary record the lowest rates, often below 18%. Among Europe’s largest economies, Italy shows the lowest participation at 18.5%, while Germany stands at 34.9%, slightly above the European average of 31.7%.

The participation gap between prime-age workers (25-54) and older workers (55-65) is broadest in Portugal, at 24.7 percentage points, and narrowest in Italy, at 8.9 percentage points. However, a narrower gap in countries like Italy does not necessarily indicate better performance for older workers, but often reflects universally lower engagement across age groups.

Economic Implications and Business Imperatives

The reluctance of older workers to engage in training, coupled with employers’ hesitance to fund such initiatives, aligns with economic theory regarding investment returns. The shorter remaining working lives of older employees can lead to a lower perceived return on investment in their training. This dynamic contributes to a broader skills gap; ManpowerGroup reported in 2023 that 75% of employers across 21 European countries struggled to find workers with the requisite skills.

However, as Pawel Adrjan, Director of Economic Research at Indeed, emphasizes, “continuous learning is essential” in a rapidly evolving market. Proactive skill acquisition, particularly concerning emerging technologies, positions professionals more effectively to adapt and maintain productivity. The OECD further notes that higher employment rates among older workers are vital for retaining valuable institutional knowledge and skills, directly contributing to overall productivity.

Policy Recommendations for Sustained Workforce Relevance

In response to these challenges, the OECD advocates for targeted policy interventions to enhance the skills and labor market integration of older workers. Key recommendations for governments include:

  • Boosting Skills of Older Workers: Implementing programs specifically designed to upskill and reskill this demographic, ensuring their competencies remain relevant to current and future job demands.
  • Addressing Barriers to Job-to-Job Mobility: Facilitating transitions for older workers between roles and industries, which can broaden their opportunities and encourage new skill acquisition.
  • Confronting Ageism and Discrimination: Combating discriminatory practices in hiring, training, and promotion that disproportionately affect older individuals, fostering a more inclusive work environment.
  • Reviving Productivity Growth: Integrating strategies, including those leveraging AI and automation, that enhance overall economic output while ensuring older workers are part of this technological advancement.

As populations age and many countries respond by raising retirement ages, the urgency of these measures becomes even more pronounced. Ensuring older workers remain skilled and engaged is not merely a social consideration but an economic imperative for sustainable growth and a resilient workforce.

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