'Work for longer' is a gamble

Guernsey’s latest dependency ratio figure is 0.56% and getting worse. Nobody externally has described this as scary, but within the States they are very aware of it and it was a key driver for the Tax Review.

Jersey has not responded to its demographics with a panic over tax – but this week it has outlined the island’s ‘stark binary decision that needs to be made’. In its case, grow the population, or increase the productivity of the island’s current population.

With problems of encouraging mums back to work, and offering childcare options to allow them to do so, combined with evidence of many over-50s finding themselves able, and prepared, to step back from the 9-5, it’s a task that might prove more difficult than it seems.

Jersey’s ‘Future Economy Plan’, due out later this year, will focus on schemes to keep islanders in work for longer. Ideas include reducing bias against older candidates at recruitment stage and improving access to lifelong learning.

Clearly businesses can, and probably will, do more, with flexible working, and valuing the expertise of grey hairs rather than seeking to move them on, to keep people in useful employment.

But all these schemes overlook the desire to continue to work, or to give up for good, sometimes before typical retirement age. Jersey’s Chamber of Commerce says ‘it will have to become the norm to be working at that age’. But mentally, as communities, we are not there yet.

As a solution for demographic challenges, it feels like a big gamble.