John Piggott, Bruce Chapman, and Peter Dawkins
Australia is facing a demographic shift that will profoundly affect its economic and labour market performance. By 2050, nearly 40% of the adult population will be aged 55 or older. At the same time, Australia’s labour force growth is expected to slow, and the traditional working-age share of the population (15–64) will decline. In this context, a clear opportunity exists to increase both productivity and labour force participation through targeted investment in mid-life skills training.
This submission argues that underinvestment in mid-life skills development is holding back productivity growth and contributing to lower participation among older workers, and that this under- investment is to a significant degree due to a lack of income support. The problem is not just about individual outcomes: it has macroeconomic consequences. Workers who are not supported to adapt and upskill are more likely to withdraw early from the labour force or remain underutilised. Yet Australia lacks an inclusive, scalable, and financially accessible policy framework to support such training. Internationally, initiatives of this kind have been mixed, but the Singapore example is very comprehensive: the Singaporean Futureskills initiative. Chomik et al. (2021) provides an overview of options to tap into the mature workforce in the Australian context.