Retirement cliff looms for local government

Simon Kuestenmacher addresses the general assembly

Local government jobs face a steep retirement cliff in the next 10 years, according to Simon Kuestenmacher, co-founder of the Demographics Group, who has studied the numbers.

In figures from the 2021 ABS Census, people over 65 make up six per cent of employees in local government but employees aged between 55 and 64 make up 23 per cent.

This was higher than the national average.

Splitting it up by jobs, gardeners and waste plant operators, truck drivers and bus drivers were all high in the 55-64 age bracket ranging from 24 to 28 per cent.

“There will be absolutely no-one around to drive those buses,” he said.

Kuestenmacher showed the labour force figures now and in 10 years’ time.

While baby boomers make up 11 per cent of the labour force, in 10 years’ time, it will be down to two per cent.

Gen X – those born between 1964 and 1981 – make up 34 per cent of the labour force now and that will decrease to 20 per cent of the labour force in 10 years’ time.

Gen Y – those born between 1982 and 1999 – will remain the workforce majority.

At the moment they are 41 per cent of the labour force and in 10 years’ time they will be 39 per cent of the labour force.

Gen Z – those born this century up to 2017 – will be 37 per cent of the labour force in 10 years’ time.

At the moment they are only 14 per cent.

Kuestenmacher presented the figures to the 1,200 delegates at the National General Assembly (NGA 2024) of local councils in Canberra from July 2-4.

The skills shortage is here to stay and regional councils have to be loud and proud in their job offerings, he said.

The offer had to be flexible and relatively low-cost housing was crucial to attracting low-income workers.

“You can’t shower them with money, you’re not the mining industry,” he said.

One point of difference worth promoting was that work/life balance was easier to achieve in local government jobs than in the private sector and in other government tiers.

He said millennial women had moved to the regions and councils should proactively seek them out.

Merilyn Vale

This article was made possible with the support of the Industry Association; Local and Independent News Association LINA