Register For Our Mailing List

Register to receive our free weekly newsletter including editorials.

Register

30 August 2026

Home / 432

Are older Australians re-assessing the job market?

Before Covid-19, a major reason that Aussies weren’t employed or looking for jobs was because they had retired. That is, they were out of the job market. In fact, in April 2018, 38.7% of people said that they were “Permanently not intending to work (aged 65 and over)”, up from 33% just four years prior (September 2014). Then there was a reassessment. The proportion of those not in the workforce because they were retired fell from 38.7% to a 3-year low of 35.3% in July 2019.

Record numbers, but are they accurate?

And in the period since, due to Covid, it is not possible to determine firmly whether the trend has changed because more people exited the job market over the lockdown period. They weren’t employed as such – they didn’t work for one hour or more in the past week - but neither were they looking for work because they were likely to return to their employer after the lockdown.

The lockdowns have effectively scrambled the data. The proportion of those not in the workforce because they were retired hit a record 39.9% of the total in June 2021 and this has since fallen to a low of 36.4% per cent in September 2021.

So let's check two other data points at different ages.

First, a record proportion of people aged 60 to 64 years are in work.

Second, the 65 years plus age group participation rate shows more Aussies are working longer.

Impact on overall job market

Working out why people are not in the job market will be important in coming months. If more people are electing to retire then there are fewer potential workers to fill positions. That may mean the job market tightens more than generally expected, putting upward pressure on wages and prices. And that is especially the case if foreign borders stay closed.

In other words, The Great Retirement could lead to a tighter job market. Older Aussies may see greater health risks in being in the job market in the Covid era. And still others may elect to live large given the experience of the past 18 months.

At this stage data still shows that older Aussies are active in the job market with record participation levels. However peak levels may not be far away.

In other countries, notably the US, there are similar concerns about the future state of job markets with more businesses saying they can’t find the workers to fill positions.

The great reopening has led to supply-chain breakdowns and higher prices for goods. The great reopening may lead to similar worker-job breakdowns, with labour shortages driving up wages. With thousands of Aussies reaching retirement age every week, their decisions about work could have broader, long-term inflationary implications.

 

Craig James is Chief Economist at Commonwealth Securities Limited (CommSec). This article provides general market-related commentary only and has been prepared without taking into account your objectives, financial situation or needs.

 

  •   3 November 2021
  • 7
  •      
  •   
7 Comments
Robin
November 03, 2021

Lockdowns and WFH have allowed many to experience the greener grass on the other side. I'm not surprised we're seeing 'The Great Retirement' playing out.

C
November 06, 2021

For every person retiring there is a young person leaving school or university in need of a job. As for WFH, people should be careful what they wish for. If their job can be done remotely from home, then maybe the company can save a lot of money using people in the Phillipines as has already happened in some IT sectors.

Geoff
November 07, 2021

A lot of companies started in-sourcing again when countries providing off-shore services just shut up shop with no notice during the pandemic (usually mandated by government, not the choice of the companies). A lot of businesses have learnt from that. And IT and processing sort of work, but you need capable people on shore to control them - I doubt there will be a significant outflux of jobs as a result of the pandemic.

Graham W
November 03, 2021

Centrelink now allows Age pensioners to each work and earn $320 per fortnight without affecting the Income Test.
This means an extra $8,320 pa, double that for a couple. Certainly a no-brainer for those with limited financial assets.
And it accumulated so that you can earn your $8,000 or so in one burst and have the rest of the year off.

Jerome Lander
November 06, 2021

Evidence of change means we need to think about how we build portfolios differently for the future, particularly for those who have accumulated substantial wealth and want to protect it from a changing economic environment. Inflation is certainly one of the big concerns that most aren't ready for.

C
November 06, 2021

People better be careful what they wish for. If their job can be done remotely from home, then maybe the company can save a lot of money using people in the Phillipines instead. And as mortgage rates go up in coming years with rising interest rates , people will still need jobs. For every person who retires there is a young person leaving school or finishing university needing a job.

john
November 07, 2021

J
Yep, made redundant by NSW Govt in 2020. Called "voluntary redundancy" by the HR dept. but certainly wasn't from my perspective. Take redundancy payout and accept voluntary classification or struggle financially.
So job market can get stuffed at this point, will sit on sidelines for as long as possible.
HR gatekeepers and departments are the driving force in the great switch off for many workers.

 

Leave a Comment:

RELATED ARTICLES

Jobs Summit keynote: the changing Australian economy

Soft labour market's impact on retirement outcomes

Why have Australian living standards 'fallen' and how do we fix it?

Firstlinks is sponsored by:
banner

Most viewed in recent weeks

Are you making these SMSF mistakes?

After four decades advising investors, there are a few common mistakes I've seen SMSF investors make. From holding too much cash and chasing yield to overtrading and trusting tips. Are these errors costing you?

Why have Australian living standards 'fallen' and how do we fix it?

For the last few years there has been much talk of a 'cost-of-living' crisis in Australia and of 'falling living standards'. Lately this has flared up again with the pickup in inflation resulting in a renewed fall in real wages.

Will you run out of money in retirement?

Fear of running out has become a defining retirement anxiety. Why do some retirees die with substantial wealth while others deplete their nest egg? Evidence suggests the answer is more complicated than we think. 

Four options for an income investor’s next dollar

What if Australia’s golden age of dividends is ending? Rather than overhaul your portfolio, it may be worth considering where new capital can work harder. I discuss four income strategies and the trade-offs behind each.

Retirement spending is not one-size-fits-all

New data challenges the idea that Australians are underspending their super. The bigger issue may be helping retirees navigate complexity, make confident decisions and use their savings to support security, wellbeing and choice.

The missing link in the CGT debate

A little-noticed consequence of Labor’s tax changes could have implications well beyond investors’ tax bills. The issue raises bigger questions about incentives, capital allocation and the drivers of long-term economic growth.

Latest Updates

SMSF strategies

Meg on SMSFs: What do we think about reversionary pensions these days?

Reversionary pensions have long been a staple of SMSF estate planning, but are they still the best option? Meg Heffron revisits a once-clear favourite and asks whether changing super rules have shifted the balance.

The ageing ‘crisis’ has not and will not happen

Rising age dependency is frequently treated as a warning sign for economies. But when actual workforce participation is examined, a strikingly different picture emerges about ageing, productivity and economic sustainability.

Retirement

How does the 4% rule stack up?

The 4% rule has long been retirement's gold standard. But after a difficult period for investors, fresh analysis suggests a more conservative approach may significantly improve the chances of making savings last.

Shares

Four charts that expose market concentration risk

Investors have recently been rewarded for backing market leaders, but history suggests this eventually comes at a cost. Now may be the time to review whether your portfolio is carrying unintended risks beneath the surface.

Investment strategies

The case for gearing beyond property

Most Australians gear into property but ignore shares. That may be a mistake. Used carefully, geared equity strategies can enhance long-term returns, reduce cash tied up in growth assets and support retirement income goals.

Economy

Australia's $1 trillion debt pile

The headlines exclaiming that Australian government debt has hit A$1 trillion and US government debt has hit $40 trillion has turned heads, but how serious are they really? Will Australia's mix of debt create challenges?

Economy

Has 100 years of growth made us any happier?

For decades, GDP has been the benchmark for economic success, but has it made us materially happier? If happiness does not rise in lockstep with prosperity, are we overlooking what constitutes a successful society?

Sponsors

Alliances

  • ASA-Logo-RGB-ActiveGreen-web.png

Site Map

About Firstlinks

© 2026 Morningstar, Inc. All rights reserved.

Disclaimer
The data, research and opinions provided here are for information purposes; are not an offer to buy or sell a security; and are not warranted to be correct, complete or accurate. Morningstar, its affiliates, and third-party content providers are not responsible for any investment decisions, damages or losses resulting from, or related to, the data and analyses or their use. To the extent any content is general advice, it has been prepared for clients of Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892), without reference to your financial objectives, situation or needs. For more information refer to our Financial Services Guide. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement before making any decision to invest. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser. Articles are current as at date of publication.
This website contains information and opinions provided by third parties. Inclusion of this information does not necessarily represent Morningstar’s positions, strategies or opinions and should not be considered an endorsement by Morningstar.