Since the 1960s, the world has seen a gradual decline in the economic activity of the elderly population. However, in recent decades, this trend has shifted. According to the International Labour Organization (ILO), since the early 2000s, employment rates among the elderly have been rising, particularly in developed countries like Sweden, Norway, and the United States, as well as in countries where elderly labour force participation remains relatively lower (Canada, the United Kingdom, Germany). This trend is especially noticeable among older women. Several factors, including labour shortages and changes in work (with a growing emphasis on services and reduced physical labour), contribute to the increased participation of older workers. Furthermore, improvements in education and health have enhanced the productivity of the elderly, making them more capable of staying in the workforce.
In Ukraine, as of October 1, 2024, 2.8 million of the 10.3 million pensioners remain employed, a steady increase from 19 % in 2017 to 26 % in 2024. Economic necessities, such as supporting family finances, low pensions, and helping children and grandchildren, motivate many elderly workers to stay in the labour market. However, there is age discrimination, primarily due to employers' concerns about older workers' ability to adapt to the demands of modern jobs, such as high work intensity and irregular schedules.
Although employers are often reluctant to fire older workers due to their valuable human capital, they are hesitant to hire new older employees. Employers' scepticism about older workers' ability to adapt to technological and organisational changes often drives this reluctance.
Despite age-related challenges, some pensioners secure or retain high-status jobs due to their unique skills and specialism. However, many work for lower-paying, less desirable positions, such as public education or low-skilled jobs.
Structural economic changes, including the shift away from physical labour and the service sector expansion, create more opportunities for elderly workers. However, age discrimination remains a barrier in rapidly developing sectors like IT and finance. International practices suggest that reducing employer costs and offering tax incentives for hiring older workers can help increase participation of the elderly labour force, a strategy that Ukraine could also benefit from. Addressing the growing share of older cohorts in the workforce is crucial for resource allocation optimisation, fostering innovation, and promoting social cohesion in Ukraine.
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