Understanding Ageism and Its Impact on Employment
In Mexico, losing employment after the age of 45 can lead to a silent and lasting exclusion from the formal labor market, especially for those without strong professional networks or strategic positions in their career history. This form of discrimination, known as ageism, is increasingly recognized as a significant barrier to employment in aging societies.
The Ageism Dilemma
According to the Organisation for Economic Co-operation and Development (OECD), ageism is a structural exclusion that prevents the full utilization of accumulated talent in an aging world. Despite being a persistent issue, ageism remains largely unnoticed and under-discussed in society.
The Global Aging Trend and Its Implications
As many countries, including Mexico, face a growing shortage of workers due to declining birth rates and increasing life expectancy, the OECD warns that ageism becomes an even more pressing concern. The working-age population (20 to 64 years) is already shrinking and will continue to do so until 2060. Simultaneously, the proportion of people aged 65 and over relative to those in working age will rise from 31% to 52%.
To address this challenge, the OECD recommends encouraging and facilitating the participation of adults and older individuals in good health within the labor market. This strategy aims to expand the workforce and alleviate pressure on younger generations.
Mexico’s Ageism Challenge
In Mexico, the labor participation rates for individuals aged 45 to 54 (73.4%) and 55 to 64 (64.9%) are below the global average, reflecting not only economic disadvantage but also a cultural association between productivity and youth.
Employers often assume that younger workers will “fit better” into positions, despite a lack of evidence to support this belief. In many cases, age-related bias outweighs experience or qualifications.
The Paradox of Talent Underutilization
Ironically, while companies claim to struggle finding talent, many recruitment strategies still prioritize attracting younger profiles. This approach often disregards the valuable experience of more seasoned candidates, even when they could fill vacant positions effectively.
The Economic Efficiency of Retaining Adult Workers
Maintaining adult workers in the labor market is not just a matter of labor justice but also economic efficiency, as per the OECD. Reducing the number of older workers leaving the labor force to match the lowest exit rates in countries with successful aging policies could significantly mitigate projected GDP per capita losses due to demographic aging.
The Case for Addressing Ageism in Mexico
Although Mexico still benefits from a demographic bonus, the absence of policies promoting adult labor retention presents an opportunity for growth. The OECD asserts that mobilizing underutilized labor resources, such as increased female and older worker participation, could boost Mexico’s annual GDP per capita growth by up to 0.41%.
Key Questions and Answers
- What is ageism? Ageism is a form of discrimination where individuals are unfairly treated based on their age, often leading to exclusion from the workforce.
- Why is ageism a concern in aging societies? As populations age, the persistent exclusion of experienced workers due to ageism becomes an increasingly significant barrier to employment and economic growth.
- What are the implications of ageism for Mexico? Ageism contributes to lower labor participation rates among adults in Mexico and hinders the country’s potential for economic growth through underutilization of experienced workers.
- How can ageism be addressed? Implementing policies that encourage and facilitate the participation of adults in the labor market, along with promoting a cultural shift that values experience and skills over youth, can help combat ageism.
