Based on the global demographic trends in early 2000, demographers have predicted that the “silver tsunami,” a metaphor used to describe population aging, will hit a number of countries in no time. The silver tsunami will mainly affect a few major areas in the economy and society, such as health care resources, economic expenses, and workforce changes. The latest reports showed that this phenomenon had affected the workforce in certain countries hence influencing the number of employees.
In between 1998 and 2018, employment among people aged over 55 has shown an increased number in countries such as the United States, United Kingdom, Germany, and Japan. The increment of employment in the U.S. has increased by almost 20 million. In Germany, the number has tripled and increased by nearly 5 million. The U.K. doubled to an increase of around 3 million, and in Japan, the number has increased about 500,000.
While an aging workforce might be perceived as a burden, it could help contribute to the economic growth of a country. According to the latest report from PricewaterhouseCooper’s (PwC) Golden Age Index, governments would get additional tax revenues and increase the spending power when older workers are being employed in the workforce – resulting in the boost of the output.