Never has longevity been discussed as much as it is today. Never have so many studies and data been published on the increase in life expectancy, especially showing that this increase is accompanied by health and energy.
According to the Instituto Nacional de Estatística, life expectancy in Portugal stands at 81.5 years, reaching 85.4 years for women, the highest rates ever recorded. This means that someone who reaches the age of 65 can expect to live, on average, about 20 more years.
This consistent increase in life expectancy brings important challenges in health care, housing, the labor market, and demographic sustainability.
Let us look at the current paradoxes in the labor market.
On one hand, there is a shortage of labor, partly due to the emigration of many young people from Portugal. On the other hand, there is a significant group of qualified professionals aged 50 and over who are unemployed, often as a result of restructuring processes in certain sectors, and who understandably expect to return to work.
If we consider that these individuals come from sectors that invested heavily in training their workforce over the past decades, we are facing a highly qualified contingent that is being completely wasted.
Adding to this reality are three other highly relevant factors that increase the complexity of today’s labor market environment:
· in many companies, professionals do not want to stop working when they reach retirement age, as they feel capable of continuing to contribute;
· companies lack models to attract and retain the legacy of these professionals, losing a significant amount of knowledge when they leave;
· the introduction of AI in companies is beginning with simpler, more routine tasks and processes, suggesting that it may first replace roles performed by younger workers and only later those performed by more experienced professionals. If that is the case, companies will need these senior professionals for longer.
Therefore, we are facing a labor market situation that is not favorable to anyone:
· companies struggling to attract young talent, unable to fully leverage and capitalize on the knowledge and experience of more senior professionals, and losing much of their legacy;
· more experienced professionals being pushed out of work, with negative repercussions such as loss of family income at a stage of life still marked by many commitments, as well as self-esteem and health challenges;
· the State being deprived of these professionals’ contributions and affected by the direct and indirect costs associated with this group within the country’s social systems, including social security and health care.
It is time to act. It is time to call on companies and institutions to work together to find solutions to the paradoxes we are experiencing in the labor market. It will not be easy. But either we move forward and evolve, or we fall behind, leaving many people behind.
Any solution to these challenges must involve breaking certain stigmas, particularly those related to age.
People over 50 are a strategic asset, provided companies recognize what they can bring to an organization:
* experience that reduces errors and accelerates decision-making;
* high levels of commitment and loyalty to organizations;
* the ability to mentor young professionals at the start of their careers;
* a network of contacts built over many years;
* responsibility and less need for supervision;
* ensuring knowledge transfer, among many other valuable contributions.
It is also important to dispel the myth that these professionals are necessarily expensive. They have careers that deserve recognition, yes. But many are open to flexible and moderate working arrangements, including project-based roles or fixed-term engagements.
It is time to act. To experiment with bringing professionals over 50 into our companies and to assess their value.
This is not about corporate social responsibility. It is about bringing into the business those who can deliver value. Significant value.
Isabel Viegas, Professor at CATÓLICA-LISBON