Employing Seniors: A Solution to Labor Shortages?

Beyond political divides and the governmental goals of achieving full employment, the question remains: Is there a role for seniors in the workforce?

France serves as a notable exception in the employment landscape for seniors. With recent pension and unemployment insurance reforms, the French government has made its objective clear: to achieve full employment.

While we won’t delve into the complexities of French political discussions, two key factors appear to drive these reforms:

• Demographics: According to INSEE, France will see its active population reach its peak aging milestone this year (2025), with over one in three active individuals falling between 50 and 64. Since the early 2000s, the employment rate for seniors has nearly doubled to 56%. This increase can be attributed to a trend toward “servitization” in the workforce, characterized by jobs that are less physically demanding, as well as the natural aging of the population
• Economics: Beyond the significant public savings associated with re-employing seniors, there’s an understanding that this demographic represents an untapped talent pool. Their skills and experience could support various sectors currently facing labor shortages

Seniors in the Workforce: Is It Effective?

In France, the unemployment rate for seniors is currently at 5%, which is notably lower than the national average. This statistic reflects positively on the local economy and addresses ongoing talent shortages.

However, it’s important to note that non-management roles are disproportionately represented in these figures, being three times more prevalent than executive or senior leadership positions. Additionally, the data does not account for the age at which individuals enter the workforce, which may skew our understanding of the situation.

We also need to consider the satisfaction levels of seniors who participate in the workforce. Since the health crisis, various sectors — particularly construction, hospitality, and catering — have faced challenges in finding candidates, especially for physically demanding roles. According to INSEE, 45% of unemployed seniors attribute their joblessness to health or disability concerns.

Conversely, the digital sector, which tends to be less physically demanding, presents an opportunity for seniors. This industry is currently experiencing fierce competition for talent and is increasingly open to hiring older workers, including initiatives aimed at retraining them. Nonetheless, a considerable generational gap remains, as the average age of employees in French tech companies ranges from 25 to 35.

See also: Bridging the Talent Gap in AI Industry: Hiring and Managing Global Contractors

Tackling misconceptions and discrimination

While seniors are often viewed as more disciplined and motivated than Gen Z — who are frequently stereotyped as lazy, tardy, and unpredictable and statistically leave companies sooner — surprisingly, 75% of HR directors still prefer younger candidates.

Additionally, despite 90% of executives recognizing the value that seniors’ experience and skills bring to an organization, perceptions of seniors being tech-inept or demanding high salaries can deter many from considering them for job openings.

This issue stands in stark contrast to attitudes in other EU countries, such as the Netherlands and Germany, where age and career progression are viewed differently, resulting in more favorable perspectives on senior employment.

Challenges also arise regarding how seniors are perceived by their younger colleagues, which can influence hiring decisions. For instance, while 49% of seniors express a preference for collaborating with diverse individuals, younger generations tend to be less open to such differences.

In today’s evolving workplace, where diversity and inclusion are increasingly central to corporate policies, it seems the challenge lies not in seniors’ willingness to work but in companies’ reluctance to hire them.

See also: 30+ Ways to Promote Diversity, Equity, and Inclusion (DEI) in the Workplace

Fill labor shortages with Deel

By fostering accessible, flexible, and skills-aligned roles, senior workers can become invaluable members of the global workforce. However, to tackle labor shortages effectively, a broader approach is essential.

Companies should not only invest in training, technology access, and inclusive policies for seniors but also consider global hiring as a complementary strategy. Engaging with the global talent pool can bring diverse skills and perspectives, helping to fill labor gaps while promoting inclusivity.

Deel is everything your organization needs to hire, pay, and manage a global workforce. With our all-in-one platform, you can:

• Pay anyone, anywhere, in minutes
• Expand your team and hire globally
• Consolidate your HR operations
• Simplify, speed up, and scale global IT operations
• Set your team up for success with performance tools
• Attract and retain talent with immigration support

Sound like the ideal solution? Book 30 minutes with a product expert to get your questions answered.