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OECD faces $500 billion productivity hit by 2040 as ageism sidelines older workers

Age-related discrimination could wipe out $500 billion in OECD productivity: ReportOECD faces $500 billion productivity hit by 2040 as ageism keeps older workers sidelined: WEF

The Organisation for Economic Co-operation and Development warned that age-related discrimination could wipe out nearly $500 billion in global productivity by 2040 as aging populations strain workforce capacity across its member economies.

This massive projected loss highlights how systemic bias against older workers threatens to undermine economic growth in the US, Japan, and Europe over the next two decades.

The finding matters because it forces governments and businesses to urgently reform employment policies to retain older talent and protect future economic stability.

  • The OECD was founded in 1961 to replace the European Organisation for Economic Co-operation and Development, which had managed post-WWII reconstruction aid.
  • Aging populations in Japan and South Korea are already the fastest in the world, with over 30% of their citizens aged 65 or older.
  • The World Economic Forum holds its annual summit in Davos, Switzerland, where leaders discuss global economic challenges like this workforce issue.