Promoting Better Career Choices for Longer Working Lives

Organisation for Economic Co-operation and Development

About this report

The OECD’s report addresses the evolving nature of career trajectories in response to global trends such as the green transition, digital revolution, and increased longevity. These factors are reshaping traditional career paths, leading to more fluid and diversified professional journeys. The report emphasizes the importance of facilitating job mobility, particularly for mid-career and older workers, to enhance employment opportunities and extend working lives.

Key Findings

  • Decline in Job Mobility with Age: Job mobility decreases significantly with age, dropping from approximately 17% among workers under 30 to about 7% by age 45. This decline can limit opportunities for older workers to find roles that better match their evolving skills and preferences.
  • Benefits of Voluntary Job Changes: Older workers who voluntarily change jobs often experience improvements in wages and job satisfaction. For instance, workers aged 55-64 who switched jobs voluntarily saw an average wage increase of 3.5%. In contrast, involuntary job changes in the same age group led to an average wage decline of over 13%.
  • Challenges for Low-Skilled Workers: Low-skilled older workers face significant barriers in transitioning to better-quality jobs. Approximately 60% of workers over 45 in low-skill occupations who change jobs move to another low-skill position, resulting in minimal wage progression.

Barriers to Career Mobility

  • Age Discrimination: A 2023 survey indicated that 44% of workers identified age discrimination as a primary obstacle to job mobility.
  • Geographical Constraints and Job Availability: Factors such as job location and limited opportunities were cited by 33% and 22% of workers, respectively, as barriers to changing jobs.
  • Institutional Policies: Certain policies, including occupational licenses and non-compete agreements, can inadvertently hinder mobility by restricting workers’ ability to transition between roles or industries.

Recommendations

  • Enhance Career Guidance and Lifelong Learning: Implement comprehensive, all-age career guidance systems to support workers at every stage of their careers. Encouraging lifelong learning and flexible education pathways can help workers adapt to changing skill requirements.
  • Promote Age-Inclusive Workplace Practices: Employers should adopt inclusive management practices that value the contributions of older workers. This includes offering flexible working arrangements and opportunities for skill development tailored to age-specific needs.
  • Address Structural Barriers: Reevaluate policies that may impede job mobility, such as restrictive occupational licensing, and consider reforms to enhance flexibility while maintaining necessary standards.
  • Support Health and Well-Being in the Workplace: Provide access to occupational health services and promote well-being programs to ensure that workers remain healthy and active throughout their careers.
  • By implementing these strategies, the report suggests that both governments and employers can create an environment that supports longer, more fulfilling working lives, benefiting individuals and society as a whole.