Older workers refuse to retire, young labour slips

Some roles are ageing fast, while others are moving in the opposite direction

Older workers refuse to retire, young labour slips

Workers aged 65 and older are increasingly refusing to retire, filling positions across the labour market while younger job seekers struggle to secure entry-level roles, according to recent workforce data.

 

The share of workers over 65 starting new positions has risen sharply since 2022, while workers under 25 have seen their share of new jobs fall from around 16% in the mid-2010s to single digits by 2025. The average age of new hires climbed to more than 42 by 2025, a marked increase from previous years.

Experience over potential

The shift reflects a labour market that has become more selective, prioritising immediate productivity and job readiness over long-term potential, according to workforce intelligence company Revelio Labs. When economic growth slows, firms tend to become more conservative in their hiring practices, favouring workers who can contribute from day one.

“The current cycle shows a labour market that remains active but is increasingly tilted towards experience,” according to an analysis by Revelio Labs chief economist Lisa Simon.

The change is occurring almost entirely within occupations rather than through shifts between industries. The same roles are being filled by older workers than in the past, rather than new positions emerging that inherently require older employees.

Service roles age fastest

Service-intensive and people-facing positions have experienced the most pronounced ageing since 2015. Service operations, sales representatives, claims adjusters, office assistants, and real estate agents have all seen average ages rise by close to three years.

These roles reward accumulated experience, interpersonal skills, and institutional knowledge – qualities that compound over time. Workers over 65 are disproportionately starting new roles in sales, strategy, community-facing, and teaching positions, with sales representatives showing the strongest overrepresentation.

Technical fields buck trend

More technical and analytics-driven roles have aged far less. The average age of data analysts has declined, while systems analysts have seen only modest increases. These fields continue to rely on formal training pipelines and early-career hiring, reflecting the ongoing importance of recent technical education.

The divergence across occupations stems not from structural shifts in labour demand, but from changed hiring incentives that favour experience and immediate contribution.

Economic conditions drive change

The renewed influx of older workers coincides with higher interest rates, slower hiring, and reduced employer risk-taking. Delayed retirements and weaker entry-level hiring have together lifted the average workforce age, even as the underlying occupational mix remains largely unchanged.

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