Demographic and labour market change: The dynamics of older workers in the Scottish Labour Market

Abstract

This paper presents a review of ageing in the Scottish labour market. Scotland's population structure has been ageing for some decades leading to an ageing of the working population, at a rate ahead of many countries in Europe. Low levels of fertility, increased participation in post-compulsory education and low levels of labour market participation after the age of 50 have further contributed to an anticipated marked future decline in workforce numbers. This ageing of the workforce will mean that in the future Scotland is likely to have to rely on a smaller proportion of its population to provide its services and produce its economic wealth. It also poses a number of questions around the supply of skills and labour for Scottish employers. In particular, with a declining labour force from where will employers draw labour? There are a number of important policy implications; specifically, what are the most effective ways and at what spatial level are the most effective means of addressing labour market ageing in Scotland. The paper examines the demographic context, spatial variations in ageing, the labour market participation of older workers, how current policy is addressing this issue and what should be done.