Recently, work productivity has been slowing down – despite rapid technological development. And even when productivity increases, certain people of working-age still remain unemployed.
Technology makes certain capacities more available
Connectedness and technology are enabling us to deploy our free capacities, such as time and interest, into sectors where there is a hunger for workers. As societies age, more workers in community, social and personal services are needed.
There is even a startup company in China which, being inspired by Uber, connects those who have spare time with elderly people who need care. Technology enables people of all ages to work more efficiently and therefore create larger economic value.
When older people work longer, it's good for the economy and for them as well. There are benefits for their psychological health. They will also have a sense of belonging, according to an article on the website of the business school INSEAD.
Policies will have to change
There is an institutional challenge: life expectancy is increasing, but regulation in a number of countries forces people still in productive age to retire. The age of 65 for example is often arbitrary. Reforming pension systems, or at least some parameters, will help to establish the right incentives. Workers then will continue working while they still can.
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