Working at later life
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This document discusses the current situation of employment for older workers and the need for reform. It notes that people are living longer and need to work longer to support social security systems. However, common perceptions are that there are no jobs for older workers and that employing older workers reduces opportunities for youth. The document presents data showing employment rates for older age groups over time both internationally and within Germany. It concludes that reforms are needed to abolish early retirement, improve skills for lower-skilled older workers, increase access to continuous training for older age groups, and support flexible work arrangements.
Working at later life
- 1. Working at Later Life – Current Situation and Need for Reform Eric Thode Gütersloh, 7 February 2012
- 2. Working at Later Life The case for improving employment prospects of older workers Increasing longevity and health enables people to extend their labour market participation Shrinking and aging of the work force together with increasing share of retirees put social security under pressure People are able to and have to work longer (earlier entry, more hours worked or retire later) 2 common perceptions: No jobs available for older workers Improving employment for older workers dampens prospects for the youth 7. Februar 2012 Seite 2
- 3. Working at Later Life Employment rate of 60- to 64-year-olds, 2010 and change in percentage points from 2001 70 2010 Change from 2001 to 2010 60 Lisbon target for 55- to 64-year-olds 50 40 30 20 10 0 SE UK EE CY DE FI IE PT DK NL LT ES EU27 EL RO LV BG CZ AT IT BE LU SI PL FR SK MT HU -10 -20 Source: Eurostat Internet Database, 2012. 7. Februar 2012 Seite 3
- 4. Working at Later Life Regular Employment of 60- to 64-year-olds in Germany, 1999 – 2011 1,400,000 Source: Destatis, 2012. Extension to 24 months for 58+ 1,200,000 Announcing reduction of benefit duration (from 32 Reduction becomes to 18 months for 57+) effective 1,000,000 800,000 600,000 400,000 200,000 0 Jun Mrz Jun Mrz Jun Mrz Jun Mrz Jun Mrz Jun Mrz Jun Mrz Jun Mrz Jun Mrz Jun Mrz Jun Mrz Jun Mrz Dez Dez Dez Dez Dez Dez Dez Dez Dez Dez Dez Dez Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep 7. Februar 2012 Seite 4
- 5. Working at Later Life Youth employment (25-29 ys) vs. elderly employment (60- 64 ys), 2007 and 2010 70 70 Employment rate of 60- to 64-year-olds, per cent Employment rate of 60- to 64-year-olds, per cent 2007 2010 60 SE 60 SE 50 50 IE UK UK PT LV CY EE DE DK PT CY 40 40 IE EE DE FI LT ES DK FI LT EU27 NL EL ES EL 30 RO NL 30 RO CZ EU27 LV CZ BG AT BG AT 20 SI BE 20 IT SK FR BE SK PL LU PL SI HU FR 10 LU 10 MT HU MT y = 0.901x - 40.25 y = 0.318x + 7.063 R² = 0.122 R² = 0.026 0 0 60 65 70 75 80 85 90 60 65 70 75 80 85 90 Employment rate of 25- to 29-year-olds, per cent Employment rate of 25- to 29-year-olds, per cent Source: Eurostat Internet Database, 2012. 7. Februar 2012 Seite 6
- 6. Working at Later Life Employment rate of 60- to 64-year-olds by educational attainment, 2009 80.0 70.0 ISCED 0-2 ISCED 3-4 ISCED 5-6 60.0 50.0 40.0 30.0 20.0 10.0 0.0 HU CZ BE FR PL IT AT LT SI BG EU-27 LV DE DK NL ES EL FI UK IE RO PT CY SE Source: Eurostat Internet Database, 2012. 7. Februar 2012 Seite 7
- 7. Working at Later Life Ratio of participation in continuous training between 35- to 54-year-olds and 55- to 64-year-olds, 2007 4 Source: EU Adult Education Survey Database, 2011. 3.5 3 2.5 2 1.5 1 0.5 0 HU PL EL RO PT FR MT CY SK CZ BG IT SI LT ES BE AT DE DK LV NL FI EE UK SE 7. Februar 2012 Seite 8
- 8. Working at Later Life Conclusions Institutions matter, esp. early retirement in various forms abolish early retirement Employment problems are concentrated on lower-skilled older workers improve skills and knowledge Continuous training is focused on higher-skilled and younger members of the work force overcome St. Matthew‘s principle „For unto every one that hath shall be given” Growing importance of general human capital vis-à-vis firm-specific human capital increase public activities for providing continuous training Special case of hazardous, arduous or stressful work support companies in improving flexible work organisation for better relocation possiblities 7. Februar 2012 Seite 9