According to the survey of 2100 men and women aged over 45, the most common form of discrimination involved negative views about the skills and learning abilities of older workers.
Study author Justine Irving said as a result of discrimination, older workers faced limited employment, training and promotion opportunities.
“Older adults in our study described a subtle pressure from their colleagues and management to stop working in order to make room for the younger generation. This was regardless of their experience, enduring capabilities or working preferences,” she said.
“Workers also found patronising attitudes, where employers or colleagues assumed they would struggle to pick up new technology or work systems quickly due to their age. “
In order to counter discrimination, respondents reported using strategies such as concealing their age, playing down health conditions and maintaining a youthful appearance.
Reporting her findings in 'The Conversation', Ms Irving said age-related discrimination was seen to a worrying degree in all areas of the workforce.
“Industries where age discrimination was particularly common included construction, administrative services, education, manufacturing, essential services, information technology and professional service industries,” she said.
Retirees and older job-seekers surveyed also complained of age discrimination.
Two-thirds said they had left the workforce involuntarily, through redundancy and dismissal or feeling they had no choice but to retire.
"Negative experiences at work, with a colleague, management or client, or dissatisfaction with organisational changes were often the trigger events for retirement," Ms Irving said.
"Older job seekers reported being candidly or surreptitiously rejected through recruitment processes on the basis of age alone. Education, training and a steady working history were not guaranteed to help study participants in their search for employment."
According to the study's authors, it's important to tackle age discrimination in the workforce - not just morally and ethically.
Ms Irving said the Federal Government was trying to reduce aged care pension dependency by encouraging older Australians to stay in the workforce longer.
"But adults who feel devalued in their workplace, or unable to find suitable employment, are more likely to enter retirement earlier than anticipated and less inclined to re-enter the workforce," she said.
"Our survey results also suggest that people experiencing work-related ageism tend to report poorer health, lower household incomes and lower total superannuation fund balances than those who have not had this experience."
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