Australia could face a shortfall of 1.4 million workers by 2025, according to a new report.

The Victorian Employers Chamber of Commerce and Industry (VECCI) is presenting its "Workplace Futures Report" to a summit in Melbourne today.

VECCI says the nation's ageing population will impact on skills and older Australians need to be encouraged into the work force.

Spokesman Andrew Rimington says older workers need more flexible options.

"We have seen, for instance, the level of work force participation rate of the aged 55 to 59 age group over the last year increase to a record level during a time of economic downturn," he said.

"The increase of older workers in the work force does create consideration of issues around job re-design and flexible practice, shorter working hours perhaps, part time arrangements."

The VECCI report says Victorian employers could face a shortfall of about 440,000.

The report says Victoria's population will reach to 6.7 million in 15 years, but work force growth will decline, because of the ageing population.

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