OCDE - Managing an ageing public service through tailored policies for older workers

OECD Public Governance Policy Papers No. 78 Managing an ageing public service through tailored policies for older workersThis document was produced with the financial assistance of the European Union. The views expressed herein can in no way be taken to reflect the official opinion of the European Union. This paper was approved by the Public Governance Committee on 17 June 2025 and prepared for publication by the Secretariat. This document and any map included herein are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any terri tory, city or area.

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© OECD 2025

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or of its Member countries. Third-party material – the licence does not apply to third-party material in the work. If using such material, you are responsible for obtaining permission from the third party and for any claims of infringement. You must not use the OECD logo, visual identity or cover image without express permission or suggest the OECD endorses your use of the work. Any dispute arising under this licence shall be settled by arbitration in accordance with the Permanent Court of Arbitration (PCA) Arbitration Rules 2012. The seat of arbitration shall be Paris (France). The number of arbitrators shall be one. 3

MANAGING AN AGEING PUBLIC SERVICE THROUGH TAILORED POLICIES FOR OLDER WORKERS © OECD 2025

Acknowledgements This policy paper aims to strengthen support for older workers through targeted human resource policies. It is based on a qualitative analysis conducted within the French Ministry of the Economy and Finance and in OECD member countries. The report was prepared by public policy analysts François Villeneuve and Dónal Mulligan, under the guidance of Daniel Gerson, Head of the Public Employment and Management Unit at t he Directorate for Public Governance. Simona Otrisalova, policy analyst, contributed to drafting the first section and developed the private -sector case studies presented in the third section, under the supervision of Shruti Singh, Senior Economist in the Ageing and Employment Unit at the Directorate for Employment, Labour and Social Affairs (ELS). Dana Blumin and Juan Felipe Jiménez Marín contributed to the statistical analysis in this document. Meral Gedik prepared the report for publication. The report was published under the leadership of Elsa Pilichowski, Director of Public Governance at the OECD. This work was funded by the European Union through the Technical Support Instrument (TSI) and implemented by the OECD in cooperation with the European Commis sion. We would like to express our thanks to Ledri Hysenaj, France Coordinator at SG REFORM, for her support and guidance throughout the project. We would also like to thank the French Ministry of the Economy, Finance and Industrial and Digital

implemented by the OECD in cooperation with the European Commis sion. We would like to express our thanks to Ledri Hysenaj, France Coordinator at SG REFORM, for her support and guidance throughout the project. We would also like to thank the French Ministry of the Economy, Finance and Industrial and Digital Sovereignty (MEF), and in particular the Human Resources Transformation Office within the HR Department, especially Isabelle Oyarsabal and Werner Colombani , for their excellent collaboration and their leading role throughout this project. Finally, we wish to thank all those we met during the 19 qualitative interviews conducted within the Ministry, the Directorate -General for Administration and the Civil Service (DGAFP), and the Ministry of Labour, Health and Solidarity, for the quality of the discussions and their engagement with the topic. We also thank our counterparts at Portugal’s Directorate-General for Administration and Public Employment, in particular Teresa Ganhão , and at the Danish Agency for Public Finance and Management , Mahela Madeleine Nilsson, Lotte Ra vnholt Christensen and Mia Hornemann Hahn , for their collaboration and valuable feedback. This report was produced as part of the project on “Maximising the engagement and performance of older workers through targeted HR policies ”. The initiative was funde d by the European Union through the Technical Support Instrument and implemented by the OECD in cooperation with the European Commission.4  MANAGING AN AGEING PUBLIC SERVICE THROUGH TAILORED POLICIES FOR OLDER WORKERS © OECD 2025

Table of contents Acknowledgements 3 Executive summary 5 Introduction 6 1 An ageing workforce facing specific challenges 7 1.1. An ageing workforce 7 1.2. Challenges faced by older workers in the labour market 9 2 Managing older workers strategically 14 2.1. Managing older workers as a human resources challenge 14 2.2. Ensuring meaningful career paths to meet diverse expectations 16 2.3. Developing and sharing the skills of older workers 18 2.4. Supporting and accompanying older workers 19

2 Managing older workers strategically 14 2.1. Managing older workers as a human resources challenge 14 2.2. Ensuring meaningful career paths to meet diverse expectations 16 2.3. Developing and sharing the skills of older workers 18 2.4. Supporting and accompanying older workers 19 2.5. From policies targeting older staff to multigenerational workforce strategies 20 3 Managing older workers: case studies from the public and private sectors 21 3.1. Reducing barriers to mobility for older workers 21 3.2. Enhancing and valuing the skills of older workers 25 3.3. Enhancing personalised support for older workers 28 Conclusion 31 References 32 Annex A. A guide for public administrations to develop HR policies targeting older employees 35

FIGURES Figure 1. Demographic old-age to working-age ratio 7 Figure 2. Central government workforces are older than the labour market as a whole, 2019 8 Figure 3. Employment rates decline with age across all OECD countries, 2023 9 Figure 4. Employment rate by age, sex and educational attainment, OECD, 2022 10 Figure 5. Job quality in the EU – Public administration employees 11 Figure 6. A limited strategic approach to workforce ageing in public administrations 14 Figure 7. Analytical framework for the French Ministry of the Economy and Finance and high-level recommendations 16 Figure 8. Guidance on internal lateral mobility in the public service 17 5

MANAGING AN AGEING PUBLIC SERVICE THROUGH TAILORED POLICIES FOR OLDER WORKERS © OECD 2025

Executive summary All OECD member countries face mounting challenges linked to the ageing of their populations and workforces. The public service, one of the largest employers worldwide , is particularly affected by this trend. An ageing workforce brings major challenges lin ked to the loss of critical knowledge, increasingly limited career progression opportunities within hierarchical structures and a significant share of staff facing age-related difficulties. For example, employment rates among older workers decline after th e age of 50;

trend. An ageing workforce brings major challenges lin ked to the loss of critical knowledge, increasingly limited career progression opportunities within hierarchical structures and a significant share of staff facing age-related difficulties. For example, employment rates among older workers decline after th e age of 50; they may face age-based discrimination and have fewer opportunities for training and career advancement. These challenges represent key issues for public administrations seeking to maximise the engagement and productivity of employees aged 50 and over. Addressing these challenges requires a proactive human resource management strategy targeting older workers in the public sector. This strategy should be built on three main pillars: ensuring meaningful career pathways, strengthening and transferring skills, and providing better individual support. Ensuring relevant career paths to meet diverse expectations means creating opportunities for promotion, encouraging horizontal mobility and organising structured discussions on career development. Skills development and knowledge transfer rely on increased participation of older workers in training, formal recognition of their skills and the sharing of both expertise and soft skills to help preserve institutional knowledge. Lastly, individual support includes tackling stereotypes, preparing for retirement, strengthening social support and improving working conditions for older workers. However, relatively few public administrations have formalised such an approach. This report presents case studies from the public and private sectors in EU and OECD member countries ; they offer concrete examples of practices that support a more strategic approach to managing older workers and, more broadly, a multigenerational workforce. By creating age-inclusive working environments, these strategies help maintain engagement and performance while meeting both current and future organisational needs.6  MANAGING AN AGEING PUBLIC SERVICE THROUGH TAILORED POLICIES FOR OLDER WORKERS © OECD 2025

Introduction Member countries of the European Union (EU) and the Organisation for Economic Co -operation and Development (OECD) face a significant challenge with the ageing of the working population. This trend is the result of both overall population ageing and longer working lives. As a result, the median age in many public administrations across OECD countries continues to rise, reaching over 50 in some cases. Yet relatively few public administrati ons in EU and OECD countries have identified this challenge as a major

the result of both overall population ageing and longer working lives. As a result, the median age in many public administrations across OECD countries continues to rise, reaching over 50 in some cases. Yet relatively few public administrati ons in EU and OECD countries have identified this challenge as a major priority for public service transformation. This ageing trend has direct implications for strategic workforce management. The ageing of the public service raises important questions about career development prospects for all public employees, while the management of older workers is still too often shaped by stereotypes and generalisations. In the longer term, this also presents a major challenge in terms of knowledge transfer and the preservation of expertise, as a significant cohort of public employees is expected to retire over the next 15 years. This trend calls for enhanced support measures to ensure suitable working environments and conditions. Efforts to address this issue are further complicated by the fact that older workers in the public service, defined in this report as those aged 50 and over , do not form a homogeneous group. There are real disparities between an employee who has just turned 50 and one nearing retirement, just as two individuals of the same age may have very different concerns. These disparities are further amplified by the wide range of professions, job categories and career paths within the public service. Despite these variations, there are some salient common concerns , particularly with respect to career opportunities, the development and transfer of skills, and available support. As a result, policies to better support older workers can range from measures specifically targeting these issues to broader initi atives aimed at all public employees that may also have a direct or indirect impact on older workers. This report was produced as part of the project on “Maximising the engagement and performance of older workers through targeted human resource policies ”, which aims to support the French Ministry of the Economy, Finance and Industrial and Digital Sovereignty (MEF) in dealing with the challenges and opportunities associated with an ageing workforce. The report presents the analysis and key findings from this work, including a methodological framework outlined in Chapter 2 to help structure HR policies targeting older workers. 7

Economy, Finance and Industrial and Digital Sovereignty (MEF) in dealing with the challenges and opportunities associated with an ageing workforce. The report presents the analysis and key findings from this work, including a methodological framework outlined in Chapter 2 to help structure HR policies targeting older workers. 7

MANAGING AN AGEING PUBLIC SERVICE THROUGH TAILORED POLICIES FOR OLDER WORKERS © OECD 2025

1.1. An ageing workforce All European Union (EU) countries have ageing populations. This t rend, largely a result of increased life expectancy, presents substantial socio-economic challenges. One of these challenges relates to managing a growing share of older workers within a multigenerational workforce. This issue is particularly relevant to the public service, which is often the largest employe r in EU and OECD member countries. It also raises important questions about how employers can boost the engagement and performance of their older employees. 1.1.1. An ageing workforce in ageing countries While the median age across OECD member countries was 39.8 years in 2018, it is projected to reach 44.5 years by 2050 (OECD, 2019[1]). This trend affects all OECD countries, but to different extents. For example, the median age in Israel is expected to increase only slightly , from 29.8 to 30 years, whereas in South Korea it is projected to rise from 42.6 to 56.4 years. Within the European Union, the share of the population aged 65 and over is expected to reach around 30% by 2050, compared with approximately 20% in 2021 (Commission européenne, 2023[2]). Figure 1. Demographic old-age to working-age ratio Selected European countries, 1992, 2022 and 2052

Note: The demographic old age to working age ratio is defined as the number of individuals aged 65 and over per 100 people of working age defined as those aged between 20 and 64.

Selected European countries, 1992, 2022 and 2052

Note: The demographic old age to working age ratio is defined as the number of individuals aged 65 and over per 100 people of working age defined as those aged between 20 and 64.

Source: United Nations, Department of Economic and Social Affairs (2022), World Population Prospects 2022, Online Edition (for future periods: medium-variant forecast).

0 10 20 30 40 50 60 70 80 1992 2022 2052 1 An ageing workforce facing specific challenges8  MANAGING AN AGEING PUBLIC SERVICE THROUGH TAILORED POLICIES FOR OLDER WORKERS © OECD 2025

Population ageing has direct implications for the labour market. Across all European OECD member countries, the demographic old-age to working-age ratio has continued to rise in recent years. In practical terms, this means that for each person aged 65 and over, there are fewer and fewer people of working age (between 20 and 64 years old). 1.1.2. An ageing public service These demographic trends are even more pronounced in the public service, particularly within central and federal administrations. In nearly all OECD member countries, the share of employees aged 55 and over is higher in central and federal administrations than in the overall labour market ( Figure 2). Across OECD countries, the proportion of older workers in central and federal administrations has steadily increased over recent decades (OECD, 2020[3]). Between 2015 and 2020, the share of employees aged 55 and over rose by 1.2 percentage points, reaching 26% of the central and federal government workforce in OECD member countries. Figure 2. Central government workforces are older than the labour market as a whole, 2019

Note: Data for France refer to 31 December 2018. Data for Hungary refer to 2018. Data for Luxembourg, the Netherlands and Poland refer t o December 2019. Data for Denmark and Finland refer to February 2020. For Poland, figures cover public employees aged 50 and over.

Note: Data for France refer to 31 December 2018. Data for Hungary refer to 2018. Data for Luxembourg, the Netherlands and Poland refer t o December 2019. Data for Denmark and Finland refer to February 2020. For Poland, figures cover public employees aged 50 and over.

Source: OECD (2020), Survey on the Composition of Central/Federal Government Workforce; OECD Data Explorer • Employment and unemployment by five-year age group and sex - levels.

However, a closer analysis of public administration workforces reveals significant age differences between ministries and departments. These disparities reflect the diversity of career paths and opportunities within the public service, even within the same administration, as well as budgetary constraints linked to staffing caps, which vary for different bodies. Taken together, these figures highlight the importance of analysing both the actual and potential impacts of ageing across the labour market, the public service and public administrations. Ageing in central administrations presents an array of current and future challenges in terms of human resource management and meeting the expectations of citizens. The high proportion of older workers means a large proportion of the workforce will leave the public service within the next 10 to 15 years, raising questions about workforce renewal, the development and transfer of skills and knowledge, and the need to improve strategic workforce planning to better anticipate and adapt to major employment trends. In a public service where older employees make up a significa nt share of the workforce, vertical advancement opportunities for younger cohorts may be limited , requiring a strategic approach to the management and recognition of this group. 0 5 10 15 20 25 30 35 40 45 50 0 5 10 15 20 25 30 35 40 45 50 %% Percentage of employees aged 55 and over in central/federal government Percentage of employees aged 55 and over in the labour market 9

MANAGING AN AGEING PUBLIC SERVICE THROUGH TAILORED POLICIES FOR OLDER WORKERS © OECD 2025

1.2. Challenges faced by older workers in the labour market 1.2.1. Lower employment rates among older workers

MANAGING AN AGEING PUBLIC SERVICE THROUGH TAILORED POLICIES FOR OLDER WORKERS © OECD 2025

1.2. Challenges faced by older workers in the labour market 1.2.1. Lower employment rates among older workers Population ageing has gone hand in hand with a gradual rise in the effective retirement age over recent decades and is set to increase further in more than half of OECD member countries (OECD, 2023 [4]). However, longer working lives do not always translate into longer periods of employment. Across all EU and OECD member countries, employment rates decline steadily with age among people aged 55 and over. On average across the EU in 2023, the employment rate was 76.1% among those aged 55 to 59, 51% among those aged 60 to 64, and 15.2% among those aged 65 to 69 (Figure 3). These figures must of course be considered in light of the effective retirement age, which varies between different EU and OECD countries. Figure 3. Employment rates decline with age across all OECD countries, 2023

Note: OECD and EU-27 figures are weighted averages.

Source: OECD Data Explorer • Employment and unemployment by five-year age group and sex - indicators (oecd.org).

These disparities are also accentuated by factors such as gender and level of education. Employment rate differences between men and women vary significantly by age, and rates are lower for individuals with lower levels of education (Figure 4). 0 10 20 30 40 50 60 70 80 90 100 0 10 20 30 40 50 60 70 80 90 100 %%

A. Employment rate by age group 55 to 64 25 to 54 65 to 69

0

10 20 30 40 50 60 70 80 90 100 0 10 20 30 40 50 60 70 80 90 100 %%

B. Employment rate from age 55 onwards 55 to 59 60 to 64 65 to 6910  MANAGING AN AGEING PUBLIC SERVICE THROUGH TAILORED POLICIES FOR OLDER WORKERS © OECD 2025

Figure 4. Employment rate by age, sex and educational attainment, OECD, 2022

Note: OECD figures are weighted averages.

Source: OECD Data Explorer • Employment and unemployment by five -year age group and sex - indicators (oecd.org) (Chart A) and OECD Data Explorer - Archives • Educational attainment and labour-force status (oecd.org) (Chart B). 1.2.2. Ageism as a source of discrimination Like other demographic groups, older private sector employees and public servants may face discriminatory behaviour or practices. Ageism , discrimination based on age , can affect employees of all ages. However, it is most commonly associated with older workers. The OECD Council Recommendation on Public Service Leadership and Capability underscores the importance of “ensuring an inclusive and safe public service that refl ects the diversity of the society it represents, in particular through [publicly committing] to an inclusive and respectful working environment” (OECD, 2019 [5]). Tackling all forms of discrimination, including ageism, demands the development of awareness -raising initiatives for both employers and employees to challenge age-related biases.

In the workplace, ageism can take many different forms . It may involve negative stereotypes , such as assumptions about a lack of digital skills or resistance to change. It can also manifest as discrimination in recruitment or promotion, where managerial decisions are influenced by prejudice or solely by age . In some cases, it may involve harassment that creates a hostile work environment. Older a ge is often associated with negative representations linked to illness or disability, which have consequences not only in the labour market but also in public spaces, shops and healthcare settings (Ayalon and Tesch-Römer,

In some cases, it may involve harassment that creates a hostile work environment. Older a ge is often associated with negative representations linked to illness or disability, which have consequences not only in the labour market but also in public spaces, shops and healthcare settings (Ayalon and Tesch-Römer, 2018[6]). 20 30 40 50 60 70 80 90 100 20 30 40 50 60 70 80 90 100 Men Women Men Women France OECD %%

A. By age and gender 50 to 54 55 to 59 60 to 64

20 30 40 50 60 70 80 90 100 20 30 40 50 60 70 80 90 100 Below upper secondary education Upper secondary or post-secondary nontertiary education Tertiary education Below upper secondary education Upper secondary or post-secondary nontertiary education Tertiary education France OECD %%

B. By age and level of education 35 to 44 45 to 54 55 to 64 11

MANAGING AN AGEING PUBLIC SERVICE THROUGH TAILORED POLICIES FOR OLDER WORKERS © OECD 2025

Age remains a key concern for the workforce in OECD member countries. In France, for instance, 43% o f people cited age as their biggest fear with regard to potential discrimination in the labour market (Mouvement des Entreprises de France, 2023 [7]). This is partly explained by the fact that age -based discrimination has the potential to affect everyone at some point in their lives. Moreover, both implicit and explicit biases affect the situation to varying degrees in different countries (Ackerman and Chopik, 2020[8]). Implicit bias refers to unconscious and unintentional prejudice against older people, whereas explicit bias refers to conscious and deliberate prejudice. 1.2.3. Older workers report lower perceived job quality Perceived job quality plays a key role in supporting the productivity, participation and engagement of older workers. It encompasses aspects such as autonomy, empowerment and the r esources available to carry

refers to conscious and deliberate prejudice. 1.2.3. Older workers report lower perceived job quality Perceived job quality plays a key role in supporting the productivity, participation and engagement of older workers. It encompasses aspects such as autonomy, empowerment and the r esources available to carry out work tasks. Like other age groups, older public servants attach great importance to different aspects of their job , including scope, recognition, autonomy, skills development and workplace relationships (OECD/Generation, 2023 [9]). However, older workers tend to report lower perceived job quality due to factors suc h as high pressure and workload, limited job security and career prospects, and physically demanding tasks. These issues can be particularly challenging as health declines with age, potentially leading workers to consider early retirement (OECD, 2020[10]). European public administration employees report specific challenges related to their working conditions (Figure 5). While 94% exp ress overall satisfaction, a significant share report workload pressures (44%), and 26% feel they lack the freedom to decide how their work is carried out. There are also differences between the public and private sectors, particularly with regard to physi cal demands, job security and the perception of adequate pay. Another key indicator is job satisfaction, which reflects the degree to which employees feel content with their work (Bryson, Forth and Stokes, 2015[11]). A 2023 OECD-Generation survey conducted in Germany, Spain, the United States, France, the Czech Republic, Romania, the United Kingdom and Sweden found that job satisfaction tends to decline with age (OECD/Generation, 2023[9]). Satisfaction with job security, professional recognition and workplace location dwindles as workers grow older, highlighting a mismatch between employee needs and job offerings over the course of their careers. Figure 5. Job quality in the EU – Public administration employees Share of employees aged 45 and over expressing their views on the following job characteristics

Note: The public administration category includes public administration and defence; compulsory social security.

Source: OECD calculations based on the SHARE survey on health, ageing and retirement in Europe, Wave 8.

0 10 20 30

Share of employees aged 45 and over expressing their views on the following job characteristics

Note: The public administration category includes public administration and defence; compulsory social security.

Source: OECD calculations based on the SHARE survey on health, ageing and retirement in Europe, Wave 8.

0 10 20 30 40 50 60 70 80 90 100 0 10 20 30 40 50 60 70 80 90 100 Satisfaction avec le travail Accompagnement adapté dans les situations difficiles Possibilité de développement des compétences Reconnaissance méritée du travail accompli Perspectives d'évolution professionnelle Salaire perçu comme adéquat Pression ou charge de travail élevée Souhaite de partir à la retraite dès que possible Autonomie limitée au travail Travail physiquement exigeant Inquiétude concernant la sécurité de l’emploi Satisfied with job Received recognition deserved for work Looking to take early retirement Poor job security Option to develop new skills Adequate salary Little freedom to decide how to conduct work Physically demanding Professional progress prospects Appropriate support in difficult situations Pressure/ workload12  MANAGING AN AGEING PUBLIC SERVICE THROUGH TAILORED POLICIES FOR OLDER WORKERS © OECD 2025

1.2.4. Technological change creates additional training challenges for older workers Technological progress affects jobs in different ways, depending on employer policies and social security systems. Automation can accelerate retirement by changing job requirements. However, this effect is less significant than other determinants such as income, pensions and access to social security (Lee, 2023[12]).

Technological progress affects jobs in different ways, depending on employer policies and social security systems. Automation can accelerate retirement by changing job requirements. However, this effect is less significant than other determinants such as income, pensions and access to social security (Lee, 2023[12]). Meanwhile, technological advances can boost productivity, leading to wage increases that encourage older people to stay in employment. These gains also help balance the demands of acquiring new skills with the benefits that technology offers (Burlon and Vilalta -Bufí, 2016 [13]; Ahituv and Ze ira, 2011 [14]; Milanez, 2023[15]). New technologies present both an opportunity and a challenge for older workers. Although older workers bring a wealth of experience accumulated over the years, their skills are often at greater risk of becoming obsolete (Yashiro et al., 2020[16]; OECD, 2024[17]). This highlights the importance of offering opportunities for upskilling , or, in some specific cases, reskilling. However, older workers are less likely than their younger peers to participate in job-related training. On average, only 24% of adults aged 55 to 65 take part in such training across OECD countries, compared with 41% of those aged 45 to 54. At t