OECD countries could increase their GDP by USD 2.6 trillion if the employment rate of people over 55 in the country was at least 70%, say PwC economists from the UK in a study called Golden Age Index.
The index measures how countries can exploit the economic potential of older workers based on the weighted average of indicators, including employment levels, income and participation in training / practice sessions that reflect the impact of the labour market on workers aged over 55 in 34 OECD countries.
The potential of older workers is being exploited best in Iceland, New Zealand and Sweden. The Czech Republic ranked in 20th place and overtook not only Slovakia, but also countries like the Netherlands and France.
The ageing European population is currently a problem particularly with regard to the increasing pressure on health and social care systems. “It also represents a threat to the financial sustainability of certain public and private pension systems. Individual countries could offset these high costs with greater involvement of older workers in the labour market, which would not only increase their GDP, but also tax revenue,” said John Hawksworth, PwC's chief economist and author of the study. The whole study can be found here.