At a time when the economy is experiencing labour shortages, increasing labour force participation amongst experienced older workers could boost GDP by $29 billion, according to KPMG Australia.
The opportunity to better utilise experienced older workers comes as Australia slips from 17th to 24th globally in workforce participation among 55–64-year-olds.
According to OECD data Australia’s labour force participation rate was 69% in 2025. This is well below leading countries including Sweden (84%), Japan (82%), Estonia (81%), and New Zealand (80%) who all have more than four fifths of the 55–64-year-old workers contributing to the economy.
The new modelling estimates that an increase of the workforce participation rate to 77%, driven by retaining older workers aged 55-64 years old, would add 240,000 more workers, translate into $16.7 billion in additional wages, and $12.3 billion extra profit for business which would have amounted to an additional $29.0 billion in GDP per year.
“Maintaining older talent is a multi-billion-dollar opportunity sitting in plain sight if we can get the settings right,” said KPMG Urban Economist, Terry Rawnsley.
“We have a large pool of experienced, work-ready people, yet businesses are still struggling to fill roles. Closing that gap is one of the most practical ways to ease labour shortages, boost economic activity and taxation revenue.”