Career Transitions for the Ageing Workforce

Scotland’s labour market is changing, with older workers already comprising a substantial portion of the workforce and becoming ever more significant. According to analysis by CIPD, older workers, defined as those aged 50 and above, account for roughly one third of Scotland’s workforce, with more than 90,000 individuals aged 65 or over still employed (CIPD, 2022). Moreover, as of September 2025, data from HM Revenue & Customs (PAYE Real-Time Information) indicate that of Scotland’s 2.45 million payrolled employees, 28.6 per cent are aged 50–64, while the 65+ cohort saw the largest relative percentage increase over the prior year (Scottish Government, 2025).

This shift presents both structural challenges and strategic opportunities. As the proportion of older workers rises, labour-force shrinkage among younger cohorts may lead to shortages and downward pressure on economic growth if older workers are under-utilised. Indeed, research suggests that without effective policy and workplace adaptation, ageing of the workforce could depress productivity growth by around 0.2 percentage points per annum over coming decades (International Monetary Fund, 2016).

As the workforce ages, organisations face both a challenge and an opportunity, ensuring that the experience, knowledge, and skills of older employees are fully leveraged while supporting their continued engagement and productivity. Many older workers experience under-utilisation of their skills, limited access to development opportunities, and job roles that may not align with evolving capacities.

As people age, managing their health is often more of a priority, and the right kind of workplace accommodations and changes to job design can help people to age healthily in the workplace. Unemployment in later life is also associated with negative life satisfaction, with the process of finding or keeping work a key challenge (Voss et al., 2017). Yet, many older workers report being denied even minor changes that would improve their wellbeing and productivity.

Against this backdrop, investing in a bespoke tool for ageing-workforce support becomes essential. We propose developing a dedicated tool designed for use by both individuals and organisations. For employees, it will identify skill gaps, highlight training opportunities, and provide personalised guidance on career development and job adaptation. For organisations, it will offer insights into workforce capability, inform job redesign, and support strategic deployment of talent, maximising retention of experience and expertise.