You Just Screened Out Your Best Candidate. They Were 52.

Almost one in four Australian employers now classify someone in their early 50s as an older worker, up from one in ten two years ago. One in five admit their recruitment practices disadvantage older workers. This is happening in an economy where technicians and trades workers make up more than half of all occupations in persistent shortage.

Age bias in recruiting costs the business that practises it first, through longer vacancies, higher turnover and lost judgement. It costs the economy around $29 billion a year in unused capacity. And with AI screening tools now facing discrimination claims overseas, it is becoming a legal risk. Older workers are the most under-used talent pool in Australia. This article shows how to stop wasting it.

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Picture a plumbing and gas contractor with 18 staff and two vacancies that have been open since March. The owner has run ads, tried a recruiter and posted on every job board. The candidates who apply are either apprentices or people in their late 50s. The owner quietly rules out the second group. He assumes they are winding down.

He is not unusual. The Australian HR Institute and the Australian Human Rights Commission surveyed employers in 2025. They found that the age at which workers are considered old is declining. Nearly a quarter of respondents put it at 51-55. Only 28 per cent were open to hiring people over 65 to a large extent, and 18 per cent were not open to it at all.

The irony is that the same respondents rated experience and professional knowledge as the top two advantages of older workers. Their stated barriers to hiring them were few applicants, high salary expectations and, from 28 per cent, too much experience. Employers know what they are missing. They screen it out anyway.

The cost is real, and it lands on the employer first. Vacancies stay open longer. New hires take longer to become productive. Turnover remains high due to younger hires leaving. And the older workers who could have priced a job correctly the first time are working for a competitor, or not working at all.

This article sets out what age bias in recruiting looks like in 2026 and what it costs. It covers legal and technology risks and how to remove bias from your hiring process in 30 days.

Free Resource: The Age-Neutral Hiring Audit

A one-hour audit covering job ad language, screening tools, interview structure, role design and knowledge capture, plus a true-cost calculator that prices age bias in recruiting with your own numbers.

The point in three lines
  • One in four employers now call a worker in their early 50s old, and one in five admit their recruitment disadvantages older workers, in the middle of a skills shortage.

  • KPMG puts the value of lifting participation among 55- to 64-year-olds at $29 billion a year. Australia ranks 24th in the world on this measure.

  • AI screening tools are facing age discrimination claims overseas and new transparency rules in Australia from December 2026. Fix the process, not just the attitude.

Digging Deeper

What age bias looks like in 2026

The AHRI and Commission survey is the fifth in a series that began in 2014. It gives the clearest picture of how Australian employers think about age. The 2025 findings are stark:

  • 24 per cent of HR professionals classify workers aged 51 to 55 as older, more than double the 10 per cent recorded in 2023.

  • One in five say their organisation’s recruitment practices negatively affect older workers. Almost the same proportion say the same about younger workers.

  • 80 per cent are open to hiring people aged 25 to 34 to a large extent. For people 65 and over, the figure is 28 per cent.

  • Younger workers are widely seen as more creative, adaptable and technologically capable. Older workers are seen as more experienced and knowledgeable, but that perception does not translate into hiring.

  • Almost three in four employers now offer flexible work as a recruitment strategy for age-diverse hiring, up from 49 per cent in 2021. The tools exist. The shortlist is where they fail.

The view from the other side of the desk matches. A survey commissioned by COTA Australia found more than 72 per cent of people aged 50 and over believe ageism locks older people out of the workforce. Among those not in paid work, it was 75 per cent.

Earlier research from the same series found only 26 per cent of organisations methodically captured knowledge from departing staff. More than half seldom or never offered training on age bias. A decade ago the Commission’s Willing to Work inquiry found more than a quarter of Australians over 50 had experienced age discrimination at work. Little has changed.

Age bias in recruiting rarely takes the form of a stated policy. It looks like a job ad asking for a digital native. It looks like a recruiter screening out a 30-year career because it does not fit on one page. It looks like a lower offer because the candidate will retire soon. It looks like an interviewer silently wondering how long the candidate plans to stay.

What it costs your business

The true cost of age bias in recruiting is not a single number. It is a set of costs that compound. Think about what the plumbing contractor loses when it overlooks older workers.

Vacancy cost. Two open roles for six months means turned-away work, overtime for the existing crew and jobs that run late. For a trade business billing $150 an hour per technician, an unfilled role costs thousands of dollars a week in lost revenue.

Time to productivity. An experienced tradesperson, bookkeeper, or clinician can complete a full workload in a matter of weeks. A junior takes years and requires supervision that pulls senior staff away from billable work.

Turnover. ABS job mobility data consistently shows people over 55 change jobs far less often than workers under 35. Every departure incurs recruitment fees, lost productivity, and retraining costs. Older workers reduce that churn.

Judgement. Someone who has seen a hundred jobs go wrong knows how to price the hundred and first. That judgement shows up in accurate quotes, fewer variations and better client relationships. It cannot be trained quickly, and it cannot be bought from a job board.

Mentoring. Older workers are the people who train your apprentices and graduates. Remove them and your training pipeline collapses at the same time as your senior capacity.

None of these costs appears on a single invoice. They show up as lower margin, higher turnover and slower growth. Priced honestly, a senior hire usually beats a junior hire plus the re-work the junior generates. The companion calculator walks through the five cost lines with your own numbers.

What it costs the economy

KPMG Australia modelled the national cost of under-using older workers in June 2026. Australia’s participation rate for 55- to 64-year-olds was 69 per cent in 2025, compared with 84 per cent in Sweden and 80 per cent in New Zealand. Australia has slipped from 17th to 24th among comparable economies.

KPMG estimated that lifting participation to 77 per cent, roughly where Australia would be if its earlier trend had continued, would add around 240,000 workers. That translates to $16.7 billion in additional wages, $12.3 billion in extra business profit and $29 billion a year in GDP.

The finding is consistent with a decade of modelling. Deloitte Access Economics estimated in 2012 that a five-point lift in participation among people over 55 would add about $48 billion, or 2.4 per cent of national income. PwC put the potential gain at up to $78 billion if Australia matched Sweden.

The point is not the precise number. Older workers are the largest pool of skilled, available labour Australia has. Every sector says it cannot find people.

Key statistics
  • Employers classifying workers aged 51 to 55 as older: 24 per cent (10 per cent in 2023).

  • Employers open to hiring people 65 and over “to a large extent”: 28 per cent.

  • Employers admitting recruitment practices disadvantage older workers: One in five.

  • Australia’s participation rate, ages 55 to 64: 69 per cent (Sweden 84 per cent).

  • Australia’s world ranking on 55 to 64 participation: 24th, down from 17th.

  • Annual GDP gain from lifting participation to 77 per cent: $29 billion.

When the algorithm does the screening

Much of today’s age bias does not involve a human decision. It happens inside applicant tracking systems and AI screening tools that rank candidates before anyone reads a CV. The tools learn from past hiring. If a business hires more 25-year-olds than 55-year-olds, the tool learns the pattern.

The clearest warning comes from the United States. Derek Mobley sued HR software provider Workday in 2023, alleging its screening tools rejected him from more than 100 jobs because of his age, race and disability. Rejections often arrived within minutes. In 2025, a federal court allowed the age claim to proceed as a collective action on behalf of applicants over 40. Court documents indicated that the software processed approximately 1.1 billion applications during the covered period.

In March 2026, the court confirmed that US age discrimination law protects applicants, not just employees. In June, it kept claims alive under California law and accepted that a screening vendor can be treated as the employer’s agent. The practical lesson for any business is blunt: the software did it is not a defence.

Australia has its own precedent. In 2021-22, the Merit Protection Commissioner overturned 11 promotion decisions at Services Australia. Candidates had been filtered through a sequence of AI tools, including psychometric tests and recorded video responses, with no human review. The Commissioner found meritorious candidates were unfairly excluded and warned that many commercial tools are untested and cannot be guaranteed free of bias.

The Australian Public Service Commission released principles for AI in recruitment in April 2026, built around human accountability and merit. The Australian Human Rights Commission has published an AI and recruitment compliance checklist for employers of any size. And from 10 December 2026, amendments to the Privacy Act will require organisations to disclose in their privacy policies when they use personal information in substantially automated decisions that significantly affect people.

The AHRI and Commission report made 18 recommendations. Two sit at the top of the list for any employer: age-neutral job advertisements and audits of AI resume screeners for bias.

For a small business, the implication is simple. If you use a job board, recruiter or HR platform that ranks or filters candidates automatically, you own the outcome. Ask how the tool works, what it screens on and whether it has been tested for age bias in Australian conditions. Age bias in recruiting that runs through software is still your bias in law.

The legal exposure

Age is a protected attribute under the Age Discrimination Act 2004 at the Commonwealth level and under every state and territory anti-discrimination law. The general protections in section 340 of the Fair Work Act also prohibit adverse action against a prospective employee based on age. That includes decisions made during recruitment, not just after hiring.

Indirect discrimination matters as much as direct discrimination. A requirement that appears neutral, such as a maximum number of years of experience or a preference for recent graduates, can be unlawful if it disadvantages older workers and is not reasonable. So can an automated filter with the same effect.

Several jurisdictions, including Queensland, now impose a positive duty on employers to take reasonable steps to eliminate discrimination, rather than respond to complaints. That shifts the question from whether you discriminated to whether you checked. A documented, age-neutral hiring process is the evidence that you did.

This is general information. Anti-discrimination law differs between jurisdictions and continues to change, so seek legal advice on your specific obligations.

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How this plays out across sectors
  • Trades and services. The shortage is most acute here, and the experience premium is highest. A 55-year-old electrician who can no longer crawl through ceilings can estimate, supervise, manage compliance and train apprentices. Design roles for that.

  • Professional services. Accounting and legal firms are the heaviest users of automated screening, and lose the most when a career changer in their 50s is filtered out on a keyword. Experienced bookkeepers and paralegals are in shortage, and older workers fill those roles reliably.

  • Allied health and NDIS. Practice managers, support coordinators, and experienced nurses often enter the sector after a first career. They bring the calm and compliance discipline NDIS audits reward, and they stay.

  • Not-for-profits. The sector runs on experienced people willing to work for purpose rather than top-of-market pay. Older workers are disproportionately willing to do that. Boards that want stable finance and operations should deliberately recruit them.

Removing age bias in 30 days

Fixing this does not need a diversity program. It needs a process.

Week 1: Audit the words

Read your last five job ads. Strike out anything that signals age: digital native, energetic, recent graduate, cultural fit with a young team, maximum years of experience. Replace it with the actual capability you need. Ask for a licence, a qualification or evidence of a specific outcome, not a life stage. Older workers read those signals and self-select out before you ever see them.

Week 2: Audit the tools

List every platform in your hiring chain: job board, applicant tracking system, recruiter, testing provider. For each one, ask three questions. Does it rank or filter candidates automatically? On what criteria? Has it been tested for age bias? If nobody can answer, switch off the automatic filtering and shortlist manually. Ask the tool or recruiter to hide dates of birth, graduation years and employment gaps from the screener. Then set a quarterly check: pull a sample of rejected candidates over 50 and ask how many would have passed a trial day. If it is more than a third, the filter is biased. Keep the answers on file.

Week 3: Structure the interview

Use the same questions, in the same order, scored against the same criteria for every candidate. Structured interviews are the single most effective control against any unconscious bias. Remove questions about career plans, retirement or how long someone intends to stay. Ask instead what they would do in the first 90 days. Then give every final candidate the same paid trial day, on the same task, under the same conditions. The work is the most honest interview you’ve ever given.

Week 4: Design the role for the whole career

Decide what flexibility you can offer: part-time, a four-day week, a phased transition from tools to supervision, or a defined mentoring load. Write it into the role. Then set up a simple knowledge-capture routine so that when any experienced person does leave, their judgement stays. Older workers are far more likely to accept a role that shows the employer has thought about the next ten years, not just the next ten weeks.

Frequently asked questions
Is age bias in recruiting really that common in Australia?

Yes. One in five HR professionals told the 2025 AHRI and Commission survey their own recruitment practices disadvantage older workers, and 72 per cent of over-50s surveyed by COTA believe ageism locks older people out of work. The Age Discrimination Commissioner has described it as so normalised that many accept it.

Is it true older workers are less adaptable to technology?

The AHRI survey shows employers believe it. The evidence does not support it as a general rule. Many older workers ran the last three technology transitions in their industry and are better placed than anyone to manage the next one.

Will an older worker retire in two years?

ABS data show that older workers change jobs far less often than younger workers. A 58-year-old who plans to work until 67 offers nine years of stable service. The average tenure of a 28-year-old in the same role is considerably shorter.

Can I ask a candidate their age or retirement plans?

Asking is not automatically unlawful, but using the answer in a hiring decision is. The safer course is not to ask. Structure the interview around capability and the first 90 days, and make the same enquiries of every candidate.

Our recruiter uses AI screening. Are we liable if it discriminates?

Under Australian law, the employer remains responsible for its recruitment decisions. The US Workday litigation has also treated the software vendor as the employer’s agent. Ask your recruiter how the tool filters candidates and get the answer in writing. Seek legal advice on your specific arrangements.

Is there any incentive to hire mature-age workers?

Wage subsidies for mature-age job seekers have been available through Workforce Australia providers, and settings change with each budget. Check current programs before you hire. The stronger incentive is commercial: older workers fill shortage roles now and reduce turnover for years to come.

The Bottom Line

Age bias in recruiting is expensive, increasingly visible and, when it runs through software, increasingly hard to defend. The businesses winning the skills shortage are the ones that stopped screening on age and started screening on capability.

Older workers are not a diversity target. They are the most experienced, reliable and available people in the labour market. SBAAS helps owners across trades, professional services, allied health, and the not-for-profit sector build hiring processes that find talent. To talk through your own recruitment approach, read more about how we work and book a conversation at https://sbaas.com.au/about-us/.

General information only

This article provides general information current as at September 2026. It does not constitute legal, financial or human resources advice. Anti-discrimination and privacy law differ between jurisdictions and change frequently, and overseas litigation referred to here is ongoing. Seek professional advice for your circumstances before acting.

Sources

Australian Human Rights Commission. (2016). Willing to work: National inquiry into employment discrimination against older Australians and Australians with disability. https://humanrights.gov.au/our-work/disability-rights/publications/willing-work-national-inquiry-employment-discrimination

Australian Human Rights Commission. (2019, January 17). Too old to work at 50: Survey. https://humanrights.gov.au/about-us/media-centre/media-releases/media-releases/too-old-work-50-survey

Australian Human Rights Commission. (2025, July 16). Employer biases against older and younger generations hindering Australian workforce productivity. https://humanrights.gov.au/about/news/media-releases/employer-biases-against-older-and-younger-generations-hindering

Australian Human Rights Commission. (n.d.). AI and recruitment compliance checklist. https://humanrights.gov.au/resource-hub/by-resource-type/publications/ai-and-recruitment-compliance-checklist

Australian HR Institute. (2025). Older and younger workers: What do employers think? AHRI and Australian Human Rights Commission. https://www.ahri.com.au/resources/hr-research/older-and-younger-workers-report-2025

Australian Broadcasting Corporation. (2025, May 8). AI job recruitment tools could enable discrimination against marginalised groups, research finds. https://www.abc.net.au/news/2025-05-08/ai-job-recruitment-tools-could-enable-discrimination-research/105258820

Deloitte Access Economics. (2012). Increasing participation among older workers: The grey army advances. Report for the Australian Human Rights Commission. https://humanrights.gov.au/__data/assets/file/0022/44680/Deloitte-mature-age-participation-research.doc

Holding Redlich. (2026, June 16). APSC releases principles and guidance on the use of AI in APS recruitment. https://www.holdingredlich.com/apsc-releases-principles-and-guidance-on-the-use-of-ai-in-aps-recruitment

KPMG Australia. (2026, June 17). Untapped older workers could add $29 billion to Australian economy. https://kpmg.com/au/en/media/media-releases/2026/06/untapped-older-workers-could-add-29-billion-to-australian-economy.html

Merit Protection Commissioner. (2022). Guidance material for using AI-assisted recruitment tools. https://www.mpc.gov.au/resources/guidance/myth-busting-ai-assisted-and-automated-recruitment-tools

PwC Australia. (2016). Harnessing the power of an older workforce worth up to $78 billion to the Australian economy. https://www.pwc.com.au/press-room/2016/golden-age-jul16.html

Society for Human Resource Management. (2026, July 2). The Workday AI lawsuit is a wake-up call for HR. https://www.shrm.org/topics-tools/news/technology/workday-ai-lawsuit-wake-up-call-hr

CNN Business. (2025, May 22). Lawsuit alleges discrimination by Workday’s hiring tech that prevented people over 40 from being hired. https://www.cnn.com/2025/05/22/tech/workday-ai-hiring-discrimination-lawsuit

Commonwealth of Australia. (2009). Fair Work Act 2009 (Cth), s 340. https://www.legislation.gov.au/C2009A00028/latest/text

COTA Australia. (2025, August 27). Addressing ageism, which locks older people out of work, is key to increasing productivity. https://cota.org.au/news/addressing-ageism-which-is-locking-older-people-out-of-work-key-to-increasing-productivity/

National Seniors Australia. (2025, August 8). Job-hunting seniors face ageism barrier. https://nationalseniors.com.au/news/news/job-hunting-seniors-face-ageism-barrier

National Seniors Australia. (2025, July 25). The job market and retail services are hotspots for age discrimination. https://nationalseniors.com.au/news/featured-news/jobs-market-and-retail-service-are-hotspots-for-age-discrimination

Australian Broadcasting Corporation. (2025, July 21). One quarter of employers now classify over-50s as older, with new data revealing that ageism is growing in Australia. https://www.abc.net.au/news/2025-07-21/ageism-work-employers-age-bias-hiring/105543944

0d9a8782 branding profiles

Eric Allgood is the Managing Director of SBAAS and brings over two decades of experience in corporate guidance, with a focus on governance and risk, crisis management, industrial relations, and sustainability.

He founded SBAAS in 2019 to extend his corporate strategies to small businesses, quickly becoming a vital support. His background in IR, governance and risk management, combined with his crisis management skills, has enabled businesses to navigate challenges effectively.

Eric’s commitment to sustainability shapes his approach to fostering inclusive and ethical practices within organisations. His strategic acumen and dedication to sustainable growth have positioned SBAAS as a leader in supporting small businesses through integrity and resilience.

Qualifications:

  • Master of Business Law
  • MBA (USA)
  • Graduate Certificate of Business Administration
  • Graduate Certificate of Training and Development
  • Diploma of Psychology (University of Warwickshire)
  • Bachelor of Applied Management

Memberships:

  • Small Business Association of Australia –
    International Think Tank Member and Sponsor
  • Australian Institute of Company Directors – MAICD
  • Institute of Community Directors Australia – ICDA
  • Australian Human Resource Institute – CAHRI

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