DUBLIN: Ireland could boost its long term GDP by 5.4%, or around €15 billion, if the employment rate for workers aged over 55 was equal to best-performing EU country, Sweden. This is according to the PwC Golden Age Index league table which is a weighted average of indicators – including employment, earnings and training – that reflect the labour market impact of workers aged over 55 in 34 OECD countries, including Ireland.
Ireland remains mid-table in 20th place, up from 23rd place in the previous year. The index states a key reason for Ireland being mid-table is the apparent lower employment rate of the over 55s compared to OECD average rates. Iceland tops the table, followed by New Zealand, Israel and Sweden. The highest movers in rankings since 2003 are Israel, Germany and Australia while Mexico, Turkey and Greece have each fallen 12 places. OECD countries could add around $2 trillion to their total gross domestic product (GDP) in the long run if the employment rate for workers aged over 55 was equal to best-performing EU country Sweden, according to PwC economists. Commenting on the report, PwC Chief Economist and author of the report, John Hawksworth says, “Between 2015 and 2035, the number of people aged 55 and above in high-income (OECD) countries will grow by almost 50% to around 538 million. It’s good news that we are living longer, but rapid population ageing is putting significant financial pressure on healthcare and pension systems. To offset these higher costs, we think older workers should be encouraged and enabled to remain working for longer. This would increase GDP, consumer spending power and tax revenues.”
