Post on 13-Feb-2017
INTERNATIONAL PERSPECTIVE: ARE SENIOR CITIZENS WANTED ON THE LABOUR MARKET?
Conference on active ageing in Denmark SFI, Copenhagen, 21 October 2015
Anne SonnetSenior Economist Directorate for Employment, Labour and Social Affairs, OECD
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1. The labour market situation of older workers in OECD countries
2. Key policy action
Outline of the presentation
THE OECD REVIEW ON AGEING AND EMPLOYMENT POLICIES
LIVE LONGER, WORK LONGER (2006)
WORKING BETTER WITH AGE (2016)
1. THE LABOUR MARKET SITUATION OF OLDER WORKERS IN OECD COUNTRIES
Source: OECD estimates based on national labour force surveys.
Opportunities to work at an older age vary considerably across OECD countries
5
Employment rates for people aged 55-59, 60-64 and 65-69, OECD countries, 2014
As a percentage of the age group
SVNHUN
SVKLUX
AUTBEL
GRCFRA
POLTUR ITA
CZEESP
EU21PRT IRL FIN
DNKNLD
MEXGBR
CANAUS
DEUEST
USACHL
KOR ISRCHE
JPN
NORSWE
NZL ISL
0
10
20
30
40
50
60
70
80
90
55-59 60-64 65-69 OECD 55-59 OECD 60-64 OECD 65-69
6
The cross-country difference in employment rates of older workers is driven more by job retention than by job mobility
Retention and hiring rates by age group, selected countries, 2014a
Percentages
a) The retention rate is the ratio of all employees currently aged 60-64 with job tenure of five years or more to all employees aged 55-59 five years previously. The hiring rate is the ratio of all employees aged 55-64 with job tenure of less than one year to the total number of employees.
Source: OECD estimates based on national labour force surveys.
SVN GRC AUT HUN SVK LUX FRA CZE BEL POL DNK Average ESP PRT GBR ITA FIN CAN IRL AUS CHE EST DEU NLD SWE NOR ISL0
10
20
30
40
50
60
70
80
Retention rate Hiring rate
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The older unemployed face a higher risk of long-term unemployment than those aged 25-54
Incidence of long-term unemploymenta by age groups, OECD countries, 2014
As a percentage of unemployed by age
0 10 20 30 40 50 60 70 800
10
20
30
40
50
60
70
80
31.9
50.6
71.7
18.8
48.4
41.8
60.0
44.1
61.962.5 63.0
19.3
74.2
22.4
67.8
38.0
57.9
3.5
59.6
29.5
24.9
46.0
78.874.1
68.970.5
30.1
34.7
47.2
32.9
48.9
60.0
8
There is still a perception of age discrimination in the labour market
Age discrimination in the workplace, European countries, 2011
Percentages
Source: Eurobarometer 2012.
IRL
LUX
PRTNOR
BELDEU
GBRFRA EU
GRCESP ITA
FINSW
ESVN
ESTPOL
AUTDNK
NLD ISL
SVKTUR
CZEHUN
0
5
10
15
20
25
30
35
40
45
Personally discriminated Have witnessed discrimination
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There are significant differences across countries in quality of life at work for older workers:
Finland leads the way
On a scale from 1 to 10, how would you rate your quality of life at work?
% scores 8-10, 2015
Source: EDENRED-IPSOS Barometer: 13 600 employees including 2 000 employees aged 55 and over surveyed in January 2015 in 14 countries. Data are not available for Turkey.
Spain
Italy
Franc
e
Belgium
Czech
Rep
ublic
Poland
Nether
lands
Roman
ia
United
King
dom
German
y
Austri
a
Sweden
Finlan
d0
10
20
30
40
50
60
70
55 and over National average
10
Older workers reporting supervisors are concerned about their well-being ranges
from 39% in France to 67% in the UKWould you say that your line manager genuinely cares about employee well-being?
% strongly agree and agree
Source: EDENRED-IPSOS Barometer: 13 600 employees including 2 000 employees aged 55 and over surveyed in January 2015 in 14 countries. Data are not available for Turkey.
Franc
e
Belgium Ita
lySpa
in
Roman
ia
German
y
Czech
Rep
ublic
Austri
a
Poland
Sweden
Nether
lands
Finlan
d
United
King
dom
01020304050607080
55 and over National average
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The seniority element in wages is more pronounced in some countries
Age-wage profilea in selected countries, 2012 Hourly wage at 25-29 = 100
a) The figures show the relationship between age and hourly wages, controlling for gender,immigration status of parents, industry, occupation, permanence of the contract, part-time work, yearsof job tenure, years of education and two different measures of skills.Source: OECD estimates based on PIAAC data.
25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-6490
95
100
105
110
115
120
125
130
135
140
DNK OECD FRA DEU
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Participation in job-related training by older workers is lower than for workers aged 25-54
Job-related traininga by age group, selected countriesb, 2012
As a percentage of the employed in each age group
a) Job-related training refers to participation during the past twelve months.b) OECD refers to the unweighted average of the 22 OECD countries having participated in PIAAC. UK
refers to England and Northern Ireland; Belgium refers to Flanders.Source: OECD estimates, based on PIAAC data.
ITAAUT
FRAPOL
JPN
KORNOR
SVKBEL
SWE
ESPCAN
OECDDEU IR
LAUS
EST UKDNK
NLD CZEUSA
FIN0
10
20
30
40
50
60
70
55-64 25-54
The literacy skills of older people are low relative to the younger generation, except in the UK
Only England and Northern Ireland for the UK and only Flanders for Belgium.Source: OECD Adult Skills Survey (PIAAC).
Progress in literacy skills across two generations, 2012Score on the reading scale
Spain Ita
ly
Fran
ceKor
ea
Polan
d
Austr
ia
Irelan
d
Denmar
k
German
y
Belgium
Aver
age
Finlan
d
Canad
a
Eston
ia
Cypru
s
Nether
lands
Norway
Swed
en
Czech
Rep
ublic
Austr
alia
United
State
s
United
King
dom
Slova
k Rep
ublic
Japan
220
230
240
250
260
270
280
290
300
220
230
240
250
260
270
280
290
30016-24 55-65 Average 16-24 Average 55-65
The computer skills of older people are low relative to the younger generation,
except in the Nordic countries
Only England and Northern Ireland for the UK and only Flanders for Belgium.Source: OECD Adult Skills Survey (PIAAC).
Korea
Poland
Slovak
Repub
licJap
anAust
riaIre
land
Estonia
Czech R
epub
lic
German
y
Belgium
Canad
a
United K
ingdo
mFinla
nd
Austral
ia
United S
tates
Netherl
ands
Norway
Denmark
Sweden
30
40
50
60
70
80
90
100
30
40
50
60
70
80
90
10016-24 55-65 Average 16-24 Average 55-65
Progress in the use of computers across two generations, 2012Prior computer experience and passed the ICT core test (% of persons)
2. KEY POLICY ACTION
OECD’s policy agenda to promote longer working lives
Address age discrimination, mandatory retirement, mechanisms linking pay and working conditions to age or length of service
Take a balanced approach to employment protection
Good practice in managing an age-diverse workforce
GOVERNMENT EMPLOYERS
UNIONSCIVIL SOCIETY
1. Rewarding work and later retirement
2. Encouraging employers to retain and hire older workers
Pension reform
Flexibility in work-retirement decisions
No publicly-funded early retirement schemes
No welfare benefits towards early retirement
Enhance participation in training by workers
Provide effective employment assistance to jobseekers
Improve working conditions through a broad-based strategy to improve job quality for workers at all ages
3. Sustaining employability throughout working lives
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1. Strengthen incentives for workers to build up longer careers and to continue working at an older age
2. Encourage employers to retain and hire older workers
3. Promote the employability of workers throughout their working lives with a view to strengthen employment opportunities at an older age
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Heavy policy focus on the first area relative to the second and third areas
Policy action in the second (employers’ barriers) and third (employability) areas has been much less frequent and sometimes only at the margin
Source: Sonnet, Olsen and Manfredi (2014), “Towards More Inclusive Ageing and Employment Policies: The Lessons from France, The Netherlands, Norway and Switzerland “, De Economist, Vol. 162, Issue 4.
The top priority in the countries reviewed so far has been to “Strengthen financial incentives
to carry on working”
Encourage employers to retain and hire older workersProgress and what still needs to be done
• Address age discrimination in employment -- banned by law in many countries (except in Switzerland). Even if many countries have launched a number of ad hoc initiatives, more could be done to change negative attitudes of employers to hire older workers. The Netherlands has launched very concrete measures towards age
discrimination, such as the screening of vacancy announcements.
In France, the PES (Pôle emploi) has developed the “simulation” recruitment method enabling new hires to be selected through aptitude tests without regard to age or previously held jobs.
• Seek to discourage or further restrict mandatory retirement, still in place informally and in some collective labour agreements. More could be done to reach all sectors. In Denmark, the mandatory retirement age of 70 for civil servants was
abolished in 2008 but mandatory retirement ages are still in place in the private sector.
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Encourage employers to retain and hire older workersProgress and what still needs to be done (cont.)
• Encourage the social partners to identify mechanisms to facilitate the retention and hiring of all older workers, including reviewing their practices in setting pay to reflect productivity and experience, not age. More could be done. The social partners have not reviewed extensively pay practices based on age or length of service. Public authorities could give an example by introducing performance pay and limiting automatic rises in salary with tenure for public-sector employees.
• Take a balanced approach to employment protection. Countries tend to adopt age-neutral measures on employment protection.
One exception is Poland where workers with less than four years until retirement are protected from layoffs.
• Provide employers with guidance on good practice in managing an age-diverse workforce. More could be done.
The Centre for Senior Policy in Norway aims to raise awareness on older workers among all parties.
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Promote the employability of workers throughout their working lives
Progress and what still needs to be done• Enhance participation in training by ensuring that it is adjusted
to reflect the experience and learning needs of older workers. More could be done to make training more attractive to low-skilled workers and encourage enterprises to keep training them until retirement.
In the Netherlands and Switzerland, the use of the instrument to validate skills acquired on the job is increasing.
In Poland, a National Training Fund was established in 2014 with a short-term priority to reach workers over the age of 45.
• Provide effective employment assistance to jobseekers, irrespective if their age, but targeted at those groups most at risk of long-term joblessness.
In Switzerland, high activation of older unemployed by the PES to help them back to work based on early intervention, intensified coaching and individual targeting.
In Denmark, the Senior Network is an innovative practice receiving financing from the public budget to promote participation in teams to find jobs.
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Promote the employability of workers throughout their working lives
Progress and what still needs to be done (cont.)• Improve working conditions through a broad-based strategy to improve
job quality for workers of all ages. Countries aim to reduce the effects of poor working conditions in a preventative way but more could be done to reach more firms: In Norway, anticipating and reducing sickness-related absenteeism
more effectively is one of the three goals of the “Inclusive Workplace Agreement” introduced in 2001 and by 2012 covering 60% of workers.
The networking initiative developed in the Netherlands among volunteer “pioneer” firms aims to promote sustainable employability and better health for their workers.
In France, as a headline measure of the 2013 pension reform, the personal account for preventing strenuous work exposure came partly into force in January 2015 for private-sector workers.
In Denmark, “prevention self-help kits” , including a specific “senior starter kit”, offer subsidies to enterprises to improve health and safety conditions.
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Many OECD countries have carried out a series of (pension) reforms to encourage longer working lives.
Promoting the employability of workers throughout their working lives remains crucial.
Governments, workers, the social partners and NGOs have to face these challenges together.
A more comprehensive set of reforms is necessary to improve current practices in firms to upskill, retain and hire older workers in a technology-rich work environment.
More should be done to ensure that senior citizens are wanted on the labour market.
Conclusion: More should be done !
For further information:Anne Sonnet (anne.sonnet@oecd.org) the review Working Better with Age www.oecd.org/els/employment/olderworkers
Thank you!