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Introduction: The shift towards contracting for mature aged workers in Australia
Mature-aged workers have become vital to Australia’s labour market, contributing significantly to the economy and workforce diversity.
According to the Centre of Excellence in Population Ageing Research (CEPAR), the share of workers aged 55 and older has steadily increased, driven by a healthier, more educated workforce eager to stay employed. Many older Australians are now opting for contracting roles as an alternative to traditional jobs—seeking options that suit their lifestyle and commitments.
With Australia’s ageing population, the need for jobs for older workers is more crucial than ever. Employers recognise the value of their reliability, expertise, and strong work ethic. This article explores the rise of contracting among mature-aged individuals, examining the benefits and new opportunities it offers while providing valuable insights for mature workers and employers looking to tap into this experienced talent pool.
Key benefits of contracting for mature aged workers
As more mature-aged workers embrace contracting roles, they are discovering a range of benefits that align with their lifestyle needs and career goals.
Flexibility and autonomy
One of the primary attractions of contracting for mature-aged workers is the flexibility it offers. Unlike traditional employment, contracting gives individuals greater control over their work schedules. This then enables them to balance professional commitments with personal interests or family responsibilities.
For instance, a seasoned project manager might take on jobs for older workers such as short-term contracts that align with their availability. This arrangement provides the freedom to pursue other hobbies or spend more time with loved ones.
Opportunity to leverage experience
Contracting roles often require a wealth of experience and specialised skills. Interestingly, these are areas where mature-aged workers excel.
By engaging in contract work, these individuals can apply their extensive experience and knowledge to high-impact projects, delivering value to organisations seeking expertise.
For example, an experienced marketing strategist might undertake a contract to develop a comprehensive marketing plan for a company entering a new market, drawing on decades of industry experience to craft a tailored strategy.
Income supplementation in retirement
As many Australians turn 60, they gain access to their superannuation—retirement savings accumulated through employer and personal contributions. When they transition to contracting, they gain a flexible solution for supplementing this income without the demands of full-time work.
For instance, a retired engineer might take on consulting projects, using their expertise to advise on complex designs—which helps maintain professional engagement and provides additional financial stability during retirement.
Challenges and pain points in contracting for mature aged workers
While contracting offers many advantages for mature-aged workers, it also comes with unique challenges and potential drawbacks.
Age discrimination and job insecurity
In Australia, people over 60 are an essential part of the workforce and can continue working, but many face challenges like age discrimination and job insecurity.
The Australian Human Rights Commission, for example, found that 27% of Australians aged 50 and over experienced age discrimination in the workplace within two years—with the figure rising to 35% for those aged 55 to 64.
Common issues include:
- being overlooked for job opportunities
- receiving less favourable treatment
- facing negative stereotypes about ageing, such as being deemed “too old” for specific roles
Contracting can help mitigate biases by focusing on skills and experience rather than age. CXC champions a skills-based hiring approach, connecting mature-aged workers with employers who value their expertise. However, job insecurity remains a concern since contract roles typically lack the stability of permanent positions, making it harder for older workers to find consistent, reliable employment.
Limited access to benefits
Contracting roles usually do not offer the benefits associated with full-time employment, such as health insurance, superannuation contributions, or paid leave.
This can be tough for older workers with specific health needs or planning for the future. Without these perks, mature contractors must (on their own) set aside funds for their healthcare and long-term financial security. Careful planning is key to managing these gaps and staying secure as they continue their careers.
Skills and technology barriers
The rapid pace of technological change, including the rise of artificial intelligence (AI), can create significant challenges for mature-aged workers adjusting to new tools and systems. Many older employees experience “technostress”—the constant need to learn unfamiliar technologies causes stress and affects productivity.
Cognitive changes, such as slower processing speeds, can make it harder for older workers to adapt quickly. Combined with negative stereotypes about their ability to learn new tech, these factors often result in fewer jobs for older workers.
However, many older Australians are embracing the chance to learn new skills. When given proper training and hands-on experience, they can master new technologies, including AI tools.
Employer misconceptions
Many employers still hold misconceptions about offering jobs for older workers, often believing they are more expensive. However, data suggests that this perception is misleading. The experience of older workers usually offsets costs through higher productivity, reduced turnover, and lower absenteeism rates. These same workers are five times less likely to change jobs than younger employees, which helps reduce overall turnover costs.
Studies also show that older workers often take on roles requiring complex skills and expertise. Employers who look beyond age-related assumptions frequently find that older contractors bring reliability and a strong work ethic, which makes them valuable to the organisation.
Opportunities for mature aged workers in the contracting landscape
Despite misconceptions and challenges, there are many promising opportunities for mature-aged workers within Australia’s contracting landscape.
Expanding industries and in-demand roles
Various industries are increasingly recognising the value of mature-aged workers. This is particularly evident in the healthcare and aged care sectors, where the ageing population fuels a growing demand for experienced professionals.
The Australian Aged Care Workforce Industry Council projects a shortage of 110,000 aged care workers by 2030. This presents a significant opportunity for mature-aged individuals with the skills, empathy, and expertise needed to fill these essential roles. Over 50s already make up 14% of the workforce in this sector, with approximately 634,000 employees.
Beyond healthcare, mature-aged workers are highly valued in project management and consulting. Older workers bring a fresh perspective to business operations, often identifying areas for improvement and bridging skill gaps within teams. Their ability to mentor younger employees and share valuable industry knowledge makes them indispensable, particularly in industries undergoing transformation. Evidence suggests that mature-aged employees take fewer days off and contribute to higher productivity, making them vital assets in the modern workplace.
Supportive resources for transitioning to contracting
Transitioning to contracting can be made easier with access to supportive resources and tailored programs.
For example, the CIT Mature Workers Support Project helps individuals aged 45 and older upskill or reskill for new job opportunities. This initiative offers high-quality case management, connects participants with tailored training, and engages them with potential employers, making the shift to contracting or new career paths more manageable for mature-aged workers.
For those over 50 considering a new career, roles in healthcare, project management, consulting, and skilled trades are often a great fit due to the value placed on experience and expertise. Platforms like CXC provide essential support as we are experts in connecting mature-aged contractors with opportunities and helping them navigate the complexities of self-employment.
Navigating financial and legal aspects of contracting
Understanding the financial and legal aspects of contracting is crucial. This includes managing taxes, superannuation, and ensuring compliance with Australian employment laws. Seeking advice from financial advisors or organisations like CXC can provide clarity and assistance in these areas, helping mature-aged workers make informed decisions.
Conclusion: Embracing contracting as a future-ready path for mature aged workers
Contracting is ideal for mature-aged Australians, offering flexibility, control over work schedules, and the chance to earn extra income without the demands of full-time roles. It allows older workers to stay active, use their skills, and enjoy financial security while balancing work and personal lives.
If you’re ready to start a contracting career, CXC is here to help. We can connect you with the right jobs for older workers and provide support throughout your contracting journey. And if you’re a business seeking mature-aged professionals, we can help you access skilled, reliable talent who will bring valuable experience to your team.
Reach out to us today to find out how we can help you.
