Canada: Older Workers Staying in the Workforce Longer

According to a new study published by Statistics Canada, older Canadian workers are staying in the workforce longer and, as a result, may be dampening the threat of a sudden and severe labour shortage as baby boomers retire.

According to the article--"Participation of older workers", in the August 2007 issue of Perspectives on Labour and Income--by Katherine Marshall and Vincent Ferrao, an estimated 2.1 million individuals aged 55 to 64 were either employed or looking for work in 2006, more than double the total in 1976. Additional highlights include:

• The main thrust behind the upward trend is women's labour force participation rate, which rose from 38% to 62% between 1976 and 2006 for those aged 55 to 59, and from 24% to 37% for those aged 60 to 64.
• One in 4 older workers is self-employed and 1 in 5 works part time. Part-time work is one of the few job characteristics that is notably different for older and core-aged workers (those aged 25 to 54), suggesting transitional changes before retirement.
• Two-thirds of older workers who work part time do so from choice compared with only 28% of core-aged, part-time workers.

Source: Statistics Canada The Daily (August 24, 2007)

Other Sources: CTV.ca "Baby boomers staying in workforce longer: study" (August 24, 2007)--followed by posted comments

Singapore: Prime Minister Proposes Mandating Reemployment of Older Workers

In his National Day Rally speech, Singapore Prime Minister Lee Hsien Loong announced that he will be seeking legislation to require the reemployment of older workers. In addressing the best way for the government to help older workers to stay employed and work longer, the Prime Minister rejected calls for raising the retirement age of 62, since that would discourage employers from hiring older workers.

Accordingly, he called for legislation for reemployment to continue working beyond 62 ad being more flexible for both employers and employees. While a worker would not necessarily get the same job or the same pay, employers must make an offer, taking into account worker’s performance, health and preferences, and company’s needs.

As proposed, the law would take effect from 2012. It would require employers to offer reemployment to workers reaching retirement age, i.e. 62. As a first step, this would go up to 65 age and later would be pushed up to 67. In addition, the government will offer financial incentives for older people to work, and for employers to hire them.

Source: Singapore Government Media Release (August 19, 2007)

Other Sources: Channel NewsAsia "Firms facing Re-employment Act can stay cost-competitive" (August 23, 2007); Bernama.com "Singapore To Make Re-employment Of Older Workers Mandatory" (August 20, 2007)

"Employ the Older Workers Job Fair Series" To Be Held during Autumn

A partnership between The Employment Guide and AARP Foundation will hold the first of what is to an annual "Employ the Older Workers Job Fair Series" from from August 22 to October 19. The job fair series is a national effort, reaching more than 40 cities, to bring together older workers and 50+-friendly employers, and is being held in conjunction with the U.S. Department of Labor’s National Employ Older Workers Week, Sept. 23-29, 2007.

Source: Employment Guide and AARP Foundation News Release (August 21, 2007)

Canadian Surveys Show that Attention to Health Policies Can Keep Older Workers on the Job

Derek Sankey, writing for CanWest News Service, picks up on two recent surveys to point out that "tweaking health-care benefit plans could help retain experienced workers for longer, yet most companies plan to reduce those benefits in coming years."

The first survey--the "The sanofi-aventis Healthcare Survey 2007"--reports that about two-thirds of workers aged 55 or older are "very likely" or "somewhat likely" to continue working or return to the workforce after retirement if their employers would offer health benefits that continue into retirement. However, the second survey--conducted by Hewitt Associates--shows taht 57% of organizations plan to reduce post-retirement health-care benefits over the next three years.

However, according to Cathy Course, a senior benefits consultant for Hewitt Associates in Calgary, emerging trends in health-care benefit plans would suggest taht there are ways to combat the increasing costs associated with such a large of number of workers exiting the workforce and wanting extended health benefits, with flexibility being a core concept.

Source: Saskatoon Star Phoenix "Health benefits worker-retention issue" (August 18, 2007)

United Kingdom: TUC Debates Accessibility to Training for Older Workers

In a web-based debate, TUC assistant general secretary Kay Carberry told her audience that "We need to look at the upper age limit for funding apprenticeships, because most apprenticeship funding at the moment is largely limited to people under 25." Instead of taking the "mistaken" view that once you’ve been around for a few decades that’s it, Carberry said that the priorities were to scrutinise everything that happens in the workplace to make sure that it ‘s free of age discrimination and to train older workers--give them more opportunities than they’ve got now.

Carberry was participating in a live tele-cast debate sponsored by Equal-works on the topic of "The value of experience: older workers, their importance and their rights".

Some employers felt it wasn’t worth investing in training older workers because they weren’t going to be around that long. This was a misconception, she said. It was also wrong to think "that older workers aren’t going to be susceptible to learning new skills because they ‘re getting a bit doddery and they’re getting a bit slow.

"I think there are a lot of people who have worked in one particular field, who get into their late 50’ s early 60’s, don’t want to carry on doing that particular kind of work but would welcome the opportunity to do something a little bit different and quite often they don’t get that opportunity maybe with the same employer, maybe voluntary work.

"What the unions are concerned about is that older workers or workers in other age ranges are not viewed as an undifferentiated lump. We would like to see public policy more finely attuned to individuals needs."

Source: Further Education News "TUC Asst Gen Sec: End discrimination against older workers and open up training to them" (August 11, 2007)

Manpower Inc. and Schneider National Certified as "Age Friendly" Employers

RetirementJobs.com has independently evaluated and bestowed its "Age Friendly Employer" Certification upon two Wisconsin-based companies: Manpower Inc. and Schneider National, Inc. Certification indicates an employer’s recognition of the value of age 50+ workers, as well as its commitment to take affirmative action in providing meaningful employment, development opportunities and competitive pay and benefits. These two companies join such previously certified national employers as H&R Block, Marriott, REI, Robert Half International, Safeway, and Staples.

Employers who’ve earned RetirementJobs.com Age Friendly Employer Certification must have demonstrated consistent performance on twelve criteria which define best practices that effectively retain and attract a mature workforce to the employer.

Source: RetirementJobs.com Press Release (August 9, 2007)

Canada: Calgary Chamber Recommends Changes To Encourage Older Workers

The Calgary Chamber of Commerce has recommended changes to the Canadian Pension Plan, Old Age Security, and RRSP programs to remove disincentives and entice older workers to continue in the labour force. The recommendations were made as part of a submission to the Federal Expert Panel on Older Workers.

According to Heather Douglas, President & CEO of the Calgary Chamber of Commerce, older workers represent a significant source of underutilized talent and labour supply in the Canadian economy, but the federal government retirement programs do not reflect current and future demographic, retirement and life expectancy realities and create disincentives for older workers to participate in the labour force. The Chamber's submission to the Expert Panel--"Older Workers: Amending Federal Government Retirement Programs to Tap Into an Underutilized Pool of Labour Supply"--recommended several changes that have the potential to encourage 80,000 additional older Albertans to remain in the labour force:

• expanding the age range at which people are eligible to access their Canada Pension Plan benefits from 60-70 to 60-75;
• amending the Old Age Security program to encourage the most highly skilled and experienced Canadians to continue working after age 65;
• working with the provinces to develop harmonized and flexible part-time pension policies that provide incentives for Canadians to gradually transition out of the labour force after age 65.

Source: Calgary Chamber of Commerce News Release (July 30, 2007)

Armenia: Dismissal of Older Lab Workers Raises Concerns

Yerevan State University's decision to dismiss 65 laboratory workers age 65 or older who had spent years as assistants in the university’s chemistry, biology, and physics labs has raised concerns, according to an article by Sara Khojoyan. While national labor law is on the university rector’s side, since an employer has the right to cancel contracts with workers based on the national retirement age--61 for women and 65 for men, the University trade union president suggests that the workers, who are protesting their dismissal, are raising moral issues that the law does not address.

Source: Transitions Online "Out With the Old" (August 6, 2007)

Survey: EBRI Reports More Older Americans Working Full Time

According to new research published by Employee Benefit Research Institute (EBRI), there is a trend toward more full-time, full-year work among older workers and that trend can be seen is virtually every demographic group.

Among other things, EBRI writes in "Employment Status of Workers Age 55 and Older" in its August issue of EBRI Notes that:

• those aged 55 or older in the labor force increased from about 29% n 1993 to 38% in 2006
  
• those aged 65–69 in the labor force increased from about 18% in 1985 to 29% in 2006.
  
• the percentage of workers age 55 or older who work full time, full year steadily increased from 54% in 1993 to 64% in 2005.
  
• across each race/ethnicity category, the percentage of workers age 55 or older working full time, full year increased from 1987 to 2005.
  

Source: EBRI News Release (August 2, 2007)

Survey: New England Employers Not Ready for Replacing Aging Workforce

A survey conducted by the Northeast Human Resources Association (NEHRA) reports that over 85% of all firms did not have a recruiting strategy in place to offset the impending retirement of the baby boomers from the workplace, and only 5% responded that they did have a plan in place. In addtion, the NEHRA's e-Survey on the Aging Workforce shows 83% of respondents as not having a formalized plan to retain retirement-eligible workers. Of the 7% that reported having one in place, 74% reported flex-time was the best tactic to retain these workers, with job sharing ranked second at 26%, and telecommuting third at 40%.

"We are already facing a talent shortage in the New England area, and with the retirement of the baby boomer generation at hand, it will only get worse," advises Dan Henry, Chairman of the Board of NEHRA. "We hope these findings help generate some serious discussions and solutions for local businesses before any real crises occur."

Source: Northeast Human Resources Association "Aging workforce a challenge for most firms in the region, NEHRA survey says" (July 23, 2007)

Canada: Analysis of Age and the 2006 Census Released

According to Statistics Canada, data from the 2006 Census shows that the number of seniors aged 65 years and over surpassed the 4-million mark for the first time and that the working-age population (15 to 64 years) is becoming increasingly older. As a result, the proportion of senior citizens has increased from 13.0% in 2001 to 13.7% in 2006--an increase that can be seen at the national level as well as in every province, territory and census metropolitan area (CMA) in the country.

In addition, the report--"Portrait of the Canadian Population in 2006, by Age and Sex, 2006 Census"--shows that there are barely enough young people entering the working age group to replace those approaching the age of retirement--between 2001 and 2006, the population aged 15 to 24 increased by only 5.3%; for each person leaving the working age group, there was just over one individual entering it.

Source: Statistics Canada The Daily (July 17, 2007)

Book Review: "Encore: Finding Work that Matters in the Second Half of Life"

Most baby boomers aren’t ready psychologically and far more often aren’t set economically to stop working entirely, writes Vince Carducci, and Marc Freedman is getting a bead on the situation and offers a solution in his new book "Encore: Finding Work that Matters in the Second Half of Life."

According to Carducci, Freedman considers that the trend of corporations shedding older employees and slashing payroll and benefit costs is creating a tremendous waste of human capital. While he goes through policy issues that are underlying this trend or contributing to the problems, he also profiles individuals who are part of the solution. In particular, he focuses on career shifts and "highlights several innovative programs that give an idea as to how we might usher in what he terms the 'encore society.'”

Wonks will debate these and other proposals Freedman puts forth, but average readers will no doubt be most interested in the self-help section at the end of the book. Freedman provides a self-reflection matrix—Are you a “recycler,” leveraging your past experience to enter a new field? Or, are you a “changer” looking to start anew? Are you a “maker,” trying to mold an interest into a career, turning an avocation into a vocation? Whatever your persuasion, Freedman offers online resources, networking ideas and other tips to help you follow your bliss in a more well-managed way.

Source: PopMatters.com "Work, the Sequel" (July 17, 2007)

Maine: Paper Industry Facing Aging Workforce

According to a story by Colin Hickey for the Kennebec, Maine, Morning Sentinel, paper company executives are losing sleep contemplating that the industry--the largest manufacturing sector in Maine--will have 2,200 workers turn 63 within the next 10 years. "They know paper does not get produced without skilled people."

Unlike some other industries that may be facing such issues, the paper industry's problems are compounded because of perceptions that it is a dying industry:

[Mike] Barden of the Pulp & Paper Association acknowledges that this is the central question the industry faces.

"It is still that public perception (of a dying industry)," he said. "It is trying to overcome that. The reality is I just don't see the industry going away. I think there will always be an industry here."

Bill Cohen of Verso Paper, which has mills in Bucksport and Jay, confirms that the paper industry faces a labor challenge.

"It is harder to recruit, because of the perception that it is a dying industry," he said. "That is one thing we have to overcome. We are not dying; we are continuing to reshape."

Hickey reports on efforts by the industry to raise enrollments in Maine programs that are the principle sources for new recruits.

Source: Kennebec Morning Sentinel "Graying workforce a problem for paper industry" (July 15, 2007)

India: Older Workers Beng Ignored in Economic Boon? A Commentary

Ravi Srinivasan, writing in the Hindustan Times, suggests that "India’s absurdly low retirement age of 58" means that by 2010, one-fifth of India’s current workforce ("from shop-floor workers to top managers") will be out of the workforce. Even though India has had a demographic drawing card--its vast supply of young workers entering the workforce, Srinivasan reports on recent surveys that show that several industries in India are already facing moderate to severe talent shortage.

“Opening the doors to older workers is a major benefit…it will help organisations retain knowledge and experience, widen the recruitment base and could lead to more customers and greater profits,” commented Soumen Basu, executive chairman, Manpower India.

Thus, "looking beyond those grey hairs makes sound business sense." Otherwise, in a few years, India may have found itself "untutored and fertile" over "educated and aging."

Source: Hindustan Times "India’s overlooked ‘grey market’ workforce" (July 12, 2007)

Indiana: Employers Unprepared for Aging Workforce

Few Indiana employers are taking concrete steps to manage the transition as the baby boom generation begins to reach retirement age, according to a report published by the Center for Aging & Community at the University of Indianapolis. Even though employers recognize that their workforce is getting older, the survey of over 400 employers showed that many organizations seem unconcerned about the aging of the workforce and are not adapting HR practices to manage the resulting employee turnover.

In Gray Matters: Opportunities & Challenges for Indiana's Aging Workforce, Phase II: A Workplace Conundrum, the Center surveyed employers about their understanding of the ongoing demographic shift, any preparations they are making to deal with the changes, and their perceptions about employee loss and its impact on their operations. It also "onvened an expert panel of business, government and education representatives to discuss trends in the state and national workforce. The panelists agreed that intergenerational issues will have increasing impact in the workplace, and that the ideal employee--regardless of age – will be resilient, intellectually agile and responsive to change, with a broad foundation of knowledge, skills and abilities."

Among other recommendations for workers, employers, policymakers, educators, and trainers, the Center encourages employers to prepare for the future workforce by:

• conducting a skills audit of their organizations to
  determine the core competencies essential for business success now and in the future;
• understanding the skills needed and who possesses them or where there are training needs within the organization;
• developing the agile worker for the new economy, with the ability to move between projects and embrace the changing technologies; and
• educating managers in ways to manage a multi-generational workforce.

In the first part of the study issued in 2006--Gray Matters: Opportunities & Challenges for Indiana's Aging Workforce, Phase I: The Aging Matrix, the Center analyzed nationwide data to assess the level of demographic change in each state and the extent to which older residents were active in the economy and community life.

Source: University of Indianapolis’ Center for Aging & Community News Release (July 9, 2007)

Recognizing Four Stages of Age in the Wokplace for the Multigenerational Workforce

According to a new paper published by the Center on Aging and Work/Workplace Flexibility at Boston College, in response to the age demographics of the 21st century workforce, employers have started to consider how age diversity can offer both opportunities as well as challenges to “getting the work done well.”

Authored by Center Directors Drs. Michael A. Smyer and Marcie Pitt-Catsouphes, "The 21st Century Multi-Generational Workplace," the paper suggests that there are four different ways to look at age in the workplace and each can prompt different responses:

• Age: "Using the perspective of chronological age helps employers to answer the questions, 'How does typical adult development affect the performance of young adult employees, employees at mid-life, and older employees?'”
• Generation: "Looking at age from the perspective of generation can be a helpful, short-hand way to factor-in historical events or culture that may have a long-lasting impact on a specific age cohort."
• Life Course: This "perspective focuses attention on individuals’ 'personal histories' in the context of the wider social-historical-cultural context."
• Career Stage: Not all employees experience careers as a steady upward progression, so that employers can "engage employees in conversations about the next opportunities appropriate for their careers-–regardless of the employee’s age."

In conclusion, Smyer and Pitt-Catsouphes offer this advice to employers:

The effective management of a multi-generational talent pool requires that employers are able to adjust their thinking so that they can make appropriate use of the four paradigms of age . . . . Each of these helps employers to ask different questions and to think about different strategies for harnessing the experiences of all their employees.

Source: Center on Aging and Work/Workplace Flexibility
Issue Brief No. 9 (June 2007)

Health Insurance's Impact on Employment of Older Workers

According to a new paper published by the Center on Aging and Work/Workplace Flexibility at Boston College, health insurance costs are one factor that affects employer's employment decisions: "When faced with expensive healthcare, employers may cut back on hiring older workers, but not reduce their wages." On the employee side, older men in cities where health care costs are higher are more likely to stay in the workforce than retire; however, people with higher outside health care costs are not more likely to be employed, suggesting that employer decisions may be an influence.

The principal investigator of the paper--"Does Health Insurance Affect the Employment of Older Workers?"--was Joanna Lahey, Ph.D., an assistant professor at the Bush School of Government and Public Service at Texas A&M University. Among other things, she also investigated how state health mandates can be driving up some of these health costs. As for the options for employers, Lahey suggests:

As firms try to control the effect of rising health care costs on their bottom line, they will discover options other than decreasing employment. For instance, they can change their workforce composition and increase their use of part-time jobs that do not offer insurance benefits. Older workers with other sources of insurance benefits may find this option attractive. Firms may also consider hiring fewer workers for more hours.

Source: Center on Aging and Work/Workplace Flexibility Issue Brief No. 8 (June 2007)

Older Cancer Survivors Pull Their Weight in Workplace

According to a new medical study, "cancer survivors between 55 and 65 years old who remain cancer-free for two to six years after diagnosis are as likely to be working as their peers who have not had cancer." However, those people recently diagnosed with new cancers are less likely to be working.

As published by Health Services Research, the article--"Long-Term Effects of Cancer Survivorship on the Employment of Older Workers"--by Pamela Farley Short, Joseph J. Vasey, and John R. Moran concludes that "survivors with recurrences or second primary tumors may particularly benefit from employment support services and workplace accommodation. Reassuringly, any long-term effects on the employment of cancer-free survivors are fairly small."

In the cancer-free group, 63.4% of men and 51% of women in the surveyed age group were working full-time; among the cancer survivors who had no new cancers, 55.8% of men and 50.9% of women were working full-time. Short, director, Center for Health Care and Policy Research, and professor of health policy and administration and demography at Penn State, said that "What this is saying is that there is every reason to believe that survivors will continue to be productive workers and will stick with their employer."

Source: Penn State News Release (June 27, 2007)

Vermont: Older Workers Key to Economic Future of State

The New England Council has issued the latest in its series of reports on New England’s aging workforce, this one focusing on Vermont which the report indicates has a somewhat larger and more rapidly growing share of the older population than the rest of the nation.

The report, which was prepared for the Council's Older Workers Initiative by Northeastern University’s Center for Labor Market Studies, finds, among other things, that all of Vermont’s labor force growth, and population growth, in the future will be among those aged 55 and older and that the Vermont working age population will age rapidly over the next 10 years.

Accordingly, Paul Harrington, Associate Director of Northeastern University’s Center for Labor Market Studies, said "the state will increasingly have to rely on the older population for labor supply."

“The aging of Vermont’s population has several consequences for overall economic growth in the state. Without sizable increases in skilled foreign immigration and or migration of residents from other states in the nation into Vermont, the state’s population will continue to grow older and the consequent decline in the childbearing age population will continue to reduce the already low birth rate in the state,” Harrington said.

Source: The New England Council Press Release (June 26, 2007)

Europe: Is "Active Aging" a Viable Response to Demographic Changes?

According to an article in Euractive.com, European legislation aimed at delaying retirement is having little impact, as employees push for an early exit from the labour market while companies continue to lay off older staff. Following on the need for effective policies to promote opportunities for an aging workforce, "active ageing" is being discussed as a way to keep the support ratio (the number of people of working age per person over the age of 65) bearable: "The concept of active ageing refers to the idea of remaining active as we age by working longer, retiring later, engaging in voluntary work after retirement and practicing healthy-ageing lifestyles."

The article reports on a special session on active ageing, which asked whether active ageing is the only response to demographic change and whether it can work for both companies and employees. Speakers addressed various issues, including how to overcome employers' reluctance with regards to increasing the activity rates of older people, good practices with regards policies in favor of participation in employment and the productivity of the aging workforce, and empowering people to invent new models to organize their lives differently.

Source: Euractiv "Workers unenthusiastic about 'Active Ageing'" (June 5, 2007)

Rhode Island; Governor Signs Bills Banning Social Security Offset

Rhode Island Governor Carcieri has signed into law bills that forbid the state Department of Labor and Training from taking into account Social Security benefits when calculating the amount of unemployment compensation. According to a report in the Providence Journal, Carcieri said “Individuals receiving Social Security have earned it from years of work. They are entitled to it and should not be penalized for it. They deserve to receive full unemployment benefits while they look for another job.” In addtion, he said, “This legislation will encourage Rhode Island seniors to remain in the work force [for] as long as they can continue making a positive contribution to the economy.”

Source: Providence Journal"Older workers no longer punished" (June 26, 2007)

Ireland: Conference Hears about Active Aging and Keeping Older Workers

Angela Long reports that conferees were told that "Ireland faces serious economic consequences unless it encourages older people to remain in the workforce." The conference--"Active Ageing & Labour Market Trajectories" was organized by the Irish Longitudinal Study on Ageing (TILDA) and ASPEN (the Active Social Policies European Network).

Among other things, Long reports that Professor Brendan Whelan, Research director of TILDA, said that the number of working people for everyone over the age of 65 will fall from four to 2.5 by 2027. Other speakers spoke of concerns for funding pensions because of these changes, but "Donal Casey, chief executive of Irish Life Corporate Business, said that Ireland is in a better position than most other countries to cope with the problem" because it has a comparatively young population, unlike other countries, such as Germany and Japan, which are already feeling the impact of the aging population.

Source: Irishheath.com "Keep older workers, experts say" (June 26, 2007)

United Kingdom: Aging Workforce To Triple by 2017

Research conducted by Aon Consulting shows that UK employers need to prepare for an aging workforce as 78% of employees anticipate working beyond 65. While only an estimated one million are currently working past the state pension age, AON suggests that this would treble amongst people aged 65-70 by 2017.

According to its research, a quarter of respondents would carry on working past the official retirement age simply because they wanted to, while 53% believe it will be necessary to increase their pension. In comparing different regions, AON reorts that 57% of Newcastle workers were committed to topping up their pension, while 49% of Scottish employees would do so.

Source: AON Consulting News Release (June 25, 2007)

Survey: Mature Workers Most Likely To Use Communication Tools in the Workplace

In its eighth annual survey of top business issues and evolving workplace trends that impact employers and employees, Ranstad USA reveals a divergence between generations’ use of and resistance to particular communication tools in the workplace. In its World of Work 2007" survey, Randstad focused on employee productivity, retention and morale and found that, in 2007, employees’ efficiency and output replaced technology as the key source of productivity gains.

With respect to older workers, the survey had two intererstng findings. First, with respect to use of workplace communication tools:

Gen Y, the youngest generation with a reputation for being technologically savvy, is overall the least likely to use communication tools in the workplace, including computers, faxes, personal digital assistants (PDAs), mobile and landline phones. The “power-users” proved to be the Matures, the oldest generation, who were well into middle age when the personal computer was introduced, and the youngest of whom were 50 years of age when business discovered the Internet.

Second, with respect to the retiring boomer generation:

However, the generations who stand to benefit the most from the job opportunities care the least. Half of Gen X and merely 36 percent of Gen Y employees feel the shortage is a reality compared to Matures and Boomers, at 69 and 68 percent respectively.

Source: Ranstad USA Press Release (June 25, 2007)

Senate Aging Committee Holds Hearings on Aging Farm Workforce

The ranking Republican on the Senate Special Committee on Aging, Sen. Gordon H. Smith, introduced the panelists at a hearing on aging and agriculture by saying "There has not been too much discussion on the aging demographics of American agriculture" and pointing out that "Right now, nearly a quarter of farm operators in this country are 65 years of age or older. That contrasts with only 8 percent of that age class in non-agricultural industries."

The hearings covered a wide range of issues from immigration, to schooling, to estate taxes, reflecting the crisis outlined by Derek Godwin, Staff Chair and Watershed Management Extension Specialist, Oregon State Unversity Extension Services, Salem, Oregon, one of the panelists at the hearing:

In the last two U.S. Census of Agriculture reports the average age of farm owners continues to increase towards 60 years of age. This means that our communities and society in general can anticipate an unprecedented transfer in ownership of land-based business over the next couple of decades. In addition, the value of agriculture property has appreciated significantly over the years which adds complexity to how and if farms will transition to the next generation. We are at a critical stage in planning for the future of agriculture: recruiting and training the next generation of farmers and ensuring farms will continue to be viable, healthy operations. Every family owned business has to deal with transitions, but it seems to be reaching crisis proportions in agriculture.

The hearings are availalbe on a webcast.

Source: Senate Special Committee on Aging "Harvest Over The Horizon: The Challenge of Aging in Agriculture" (June 21, 2007)

Other Sources: Wisconsin Ag Connection "Hearing Looks at Effects of Aging Farmers on Ag Economy" (June 22, 2007)

Canada: Recommendations in Quebec To Stop Encouraging Early Retirement and Pushing Normal Retirement Age to 67

According to an Economic Note published by the Montreal Economic Institute, economist Norma Kozhaya, ending the encouragement of early retirement right away and gradually pushing back normal retirement age from 65 to 67 are among the measures needed to reduce the impact of aging on Quebec's public finances as well as to ease labour shortages. The Note--"The retirement age in Quebec: A worrying situation"--concludes that “it is essential to start the necessary reforms right away before demographic phenomena lead to lower economic growth that will reduce wealth creation in Quebec.”

The focus of the Note was the fact that the aging of the population and the impending mass retirement of baby boomers are already starting to create labour shortages and will soon cause weaker growth in the economy. The goal of the recommendations was to suggest a number of moves that could be considered to raise the participation rate of older people on the job market and to reduce the negative economic effects of aging while helping maintain the viability of existing retirement plans.

Source: Montreal Economic Institute Media Release (June 18, 2007)

Survey: Older Workers Least Likely To Share Career Goals with Employers

Most employees are not candid with their manager about their career aspirations, according to a nationwide survey of employed Americans by BlessingWhite, and the older a worker is, the more likely that the worker will not be candid. While reporting that 56% of employees seldom or never share their career plans with their employer, BlessignWhile found that:

The strongest predictor of career reticence is age. The older the employee is, the less likely the individual is to share career plans. Seventy-four percent of respondents aged 65+ are seldom or never candid about their career plans. This compares to 65% for those 55-64, 61% for those 45-54, 58% for those 35-44, and 45% for those 18-34.

Source: Blessing White Press Release (June 18, 2007)

United Nations Issues Report on Economic Development and Aging Society

According to a report from the United Nations, aging is having a profound impact on economic and social development worldwide, but policy responses put in place ahead of time could ease adaptation and harness the benefits of long-term demographic changes.

"World Economic and Social Survey 2007: Development in an Ageing World" provides objective analysis of pressing long-term social and economic development issues, and discusses the positive and negative impact of corresponding policies.

Greater longevity is an indicator of human progress in general. Increased life expectancy and lower fertility rates are changing the population structure worldwide in a major way: the proportion of older persons is rapidly increasing, a process known as population ageing. The process is inevitable and is already advanced in developed countries and progressing quite rapidly in developing ones.

While the report suggests that sine developing countries still have a growing youth population, strong growth in their labour force may open a unique window of opportunity for economic development if required policies are put in place,it also notes that in many developing countries the process of population aging is taking place at a much faster pace and at lower levels of income than it did in developed countries. "At current trends, by 2050 almost 80 per cent of the world’s population of 60 years and older is expected to live in what are now developing countries."

Among the reports conclusions:

• Fertility and migration policies could delay, but will not avoid population ageing;
• Negative effects of slower labour force growth can be offset by increasing both overall labour productivity and participation rates for women and older workers in ageing societies;
• Improved working conditions for older persons can extend working life and enhance their contribution and participation in the economy; and
• Old age pension systems must be based on multi-pillar systems, but with a universal social pension scheme at its basis to provide a minimum of income security and keep older persons out of poverty.

Source: UN Department of Economic and Social Affairs Press Release (June 19, 2007)

Canada: Report on Workforce Development Challenges in Ontario

Colleges Ontario's "2007 Environmental Scan" provides an analysis of economic trends in Ontario and suggests there is an urgent need for a comprehensive skills and workforce development strategy to increase the province’s competitiveness.

Among other things, the report says that by 2015, the number of young people will begin to decline resulting in a greater demand on people already in the workforce to have skills and knowledge that are current and effective. The industries to be hit first by the declining youth population will be those employing young workers, such as accommodation and food services, retail, information, and culture and recreation. On the other end of the age spectrumm, sectors that employ older workers, including health care, manufacturing, energy, and the public sector will be hit by the retirement boom as the first of the baby boomers reach the age of 65 years starting in 2011.

“As the economy relies more heavily on older workers, skills upgrading and retraining for existing workers will continue to grow in importance,” said [Linda Franklin, President and CEO of Colleges Ontario]. “The fact is too many people don’t have the right skills for the jobs that are available. And those working will require continuous education and re-training throughout their lives to update and transform their skill sets to use new technology and meet new needs.”

Source: Colleges Ontario News Release (June 19, 2007)

United States: Census Bureau Begins Releasing State-by-State Profiles of Older Workers

The U.S. Census Bureau, in partnership with Iowa, has released the first in what will be a series of 31 reports on older workers that presents a detailed picture for people 55 and older in the work force in different states. Individual reports will present data at the county and metropolitan area levels for 2004, based on data from the Local Employment Dynamics (LED) program.

In this first report--"The Geographic Distribution and Characteristics of Older Workers in Iowa: 2004", the Census Bureau highlights the age composition of the state’s work force, job gains and losses for older workers by industry, industries in which older workers are concentrated and their job stability and earnings. For example, data presented for industries in which older workers are concentrated shows that workers age 55 and older are the most visible in the manufacturing industry, accounting for 18.3% of the workforce and this industry was ranked number one in 48 of Iowa's 99 counties.

Source: Census Bureau News Release (June 18, 2007)

Canada: Forecast for Labor through 2031

Statistics Canada has published labor forecasts through 2031 showing that Canada's labor force will continue growing, but the overall participation rate will fall sharply, in the wake of the nation's low fertility and the retirement of millions of baby boomers.

According to the study--"Labour force projections for Canada, 2006-2031", among other things, the number of workers for every retired person aged 65 or older would be reduced by half between 2005 and 2031, falling from about four in 2007 to slightly more than two in 2031. In 1981, this ratio was more than five workers per inactive senior. In addition, the proportion of the labour force aged 55 and older is expected to reach between 18% and 20% in 2021, about double what it was during the mid-1990s.

The study also found that that the rapid aging of the labour force will continue to have an impact on the labor market at least until the early 2020s.

Source: Statistics Canada Daily (June 15, 2007)

Survey: EBRI Reports More Americans Working into Older Age

An analysis of U.S. census figures by the Employee Benefit Research Institute (EBRI) shows that the U.S. labor-force participation rate is increasing for those age 55 and older. In addition, the increase for those ages 55–64 is driven almost exclusively by an increase of women in the work force, while the labor force participation rate increased for both men and women age 65 and above.

Published in the June 2007 EBRI Notes, the article--"Labor-Force Participation: The Population Age 55 and Older"--reports that, in the "near-elderly" 55–64 age group, labor force participation for women increased from 57.1% in
1993 to 66.7% in 2006; for men, participation dipped from 78.3% to 77.7% in those same years. For those age 65 and older, participation among men rose from 14.8% to 20.3% and for women from 8.1% to 11.7%. EBRI also compares the participation rate for those without pension income to those with pension income.

Source: EBRI News Release (June 12, 2007)

United Kingdom: Small Businesses Slow To Adapt to Post-65 Work Rules

A study prepared by Lloyds TSB Business and the SERTeam at the Open University has found that three quarters of Britain’s small firms (with fewer than 50 employees) have yet to put in place procedures to allow their employees to carry on working beyond 65, with 45% saying they were still undecided as to whether they would implement the procedures and 28% claiming they intended to do so. Only 25% of the firms had put in place the ‘right to request’ rules for employees,

Even if they haven't implemented the rules yet--some fearing red tape or rising costs, most firms recognize that there is a need to retain older workers.

Despite the apparent reluctance to encourage staff to work beyond the age of 65, more than a third (34 per cent) of those surveyed said they were bracing themselves for a drop in the number of younger workers over the next decade. Amongst larger firms this view was even more widely held, with 57 per cent of firms employing 20-49 people expecting a fall in younger employees.

Source: Lloyds TSB Business News Release (May 25, 2007)

Conference Board Issues Report on Baby Boomers and Non-Profits

In conjunction with the Civic Ventures' announcement of its BreakThrough Awards, the Conference Board has made a preliminary release of its own report showing that non-profit organizations could be hard hit by talent shortages exacerbated by the large cohort of baby boomers soon entering the retirement years, but that there will be opportunities as well.

According to the report--"Boomers Are Ready for Nonprofits, But Are Nonprofits Ready for Them?" authored by Jill Casner-Lotto--non-profits have not invested significantly in their human resource management, putting their limited resources instead toward their mission. In addition, many funders restrict their support to specific programs or services as opposed to broader human resource development. This under-investment in managing talent has led to some of the challenges non-profits now face in terms of staffing, leadership, and succession. However, The advent of retirement for a vast majority of baby boomers also brings opportunity for non-profit organizations--a considerable number of baby boomer employees in the private sector are considering a move to the nonprofit sector where they can use their experience and skills in social purpose work.

"But action is needed now," says Casner-Lotto. "Evidence suggests that non-profits are seriously lagging behind the government and private sectors in efforts to both retain highly skilled potential retirees within their organizations and actively recruit older hires from other industry sectors."

For example, few nonprofit organizations have developed flexible work options to meet baby boomer preferences. The report describes some best practices underway in the nonprofit sector, as well as an overview of private and public sector responses.

The Conference Board Mature Workforce Program will continue research on these nonprofit issues with a fall launch of a new Research Working Group on Managing an Aging Workforce at Nonprofits.

Source: Conference Board Press Release (May 31, 2007)

Civic Ventures Gives "BreakThrough Awards" to 10 Firms Employing Workers Over 50 in Public Interest Jobs

Civic Ventures has announced the winners of the first-ever BreakThrough Award, designed to shine a spotlight on the nonprofit and public sector organizations that are providing meaningful public interest jobs for people over 50. The award, funded by MetLife Foundation, honors 10 nonprofits and public sector agencies located in large and small communities across the United States.

One of the key qualities that the winners share is flexibility, which includes offering part-time and full-time positions, varied workday schedules, telecommuting, on-site child (and grandchild) care, labor union membership and the ability to shape positions to fit skills and schedules. Employers that accommodated the schedules, commutes and other needs of their workers were more effective at recruiting, hiring, utilizing and retaining employees. As a result, some BreakThrough Award winners report lower turnover rates and less absenteeism for employees over 50 compared with younger counterparts. Other winners report that older workers--because of fuller life experiences - are often better at handling crises and interpersonal issues.

The winners were Allied Coordinated Transportation Services, Inc. (Lawrence County, PA)--using drivers over age 50 for door-to-door transportation services for older adults, the sick and disabled, and children whose mothers are in welfare-to-work programs; Leesburg Regional Medical Center and The Villages Regional Hospital (Leesburg, FL)--following five years of a recruitment and retention program aimed at those over 50, nearly half of their employees are over 50; Mature Worker Connection, a program of the Pima Council on Aging (Pima County, AZ)--offering free job placement services for people over 50; Nursing Home Ombudsman Agency of the Bluegrass, Inc. (Lexington, KY)--paying ombudsmen aged 50 to 80-something to help with just about everything (dealing with family members and lawyers, advocating for better care, running personal errands and spending time with residents); Older Workers Leading Success, a program of Cleveland Metroparks (Cleveland, OH)--recruiting older workers for part-time and seasonal positions inside the agency's offices and outside at hiking trails, the zoo, golf courses and for winter sports; Rainbow Intergenerational Child Care Program, a program of the Little Havana Activities and Nutrition Centers of Dade County (Miami, FL)--employing 30 workers over 50 who share traditions from their native land with the preschoolers from that same background; ReServe, Inc. (New York, NY)--source of skilled employees over 50 for dozens of New York City nonprofits and city agencies; Retiree Work Opportunities Program, The University of California, Berkeley Retirement Center (Berkeley, CA)--connecting former staff to current short-term or part-time openings; Troops to Teachers (Washington, D.C.)--a small federal program helping 10,000 eligible military veterans become public school teachers in high-needs schools; The YMCA of Greater Rochester (Rochester, NY)--recruiting older employees to match their changing demographic.

Source: Civic Ventures News Release (May 31, 2007)

Additional Sources: The Rochester Democrat and Chronicle "
YMCA honored for treatment of older workers" (June 2, 2007)

United Kingdom: Tesco Issues Phrase Guide so Older Employees Can Understand Younger Workers

According to news reports, Tesco is issuing employees over retirement age with a phrasebook listing more than 30 of the most common phrases used by teenagers so that older workers to help them understand and communicate with their younger colleagues.

For example, for older workers "getting caned" means receiving six of the best in the headmaster's study and "rank" is one of the few things told to the enemy, along with one's name and number. However, the phrasebook points out that rather than a beating, "caned" means doing something to excess, and "rank" means disgusting or horrible.

Source: The Daily Mail "'That's phat, brotha! Innit?' Tesco issues guide to teenage slang for its older staff" (May 31, 2007)

United Kingdom: Older Workers More Responsible about their Own Training

In its annual survey of learning at work, the National Institute of Adult Continuing Education (NIACE) reports that, among other things, The older the worker, the more likely they are to feel responsible for their own training and development. According Practice Makes Perfect: A NIACE briefing on learning at work, when asked where the main responsibility for the training and development of workers lay--with the worker, their employer, or shared between, only 28% of the youngest workers, aged 17-19, felt the main responsibility lay with themselves, whilst 41% of 55 plus employees thought they bore the main responsibility.

Source: National Institute of Adult Continuing Education Press Release (May 24, 2007)

Commentary: Global Economy and Early Retirement versus Working Longer

Philip Taylor, professor of employment policy at Swinburne University of Technology, offers up thoughts on why Australia has been increasing its employment of older workers, while at the same time companies in other parts of the world are continuing to offer incentives for early retirment. Thus, he contrasts positive signs that suggest that Australian business has woken up to the potential of older worker, with indications from other countries that raises the question whether "much of industry, wishing to remain globally competitive, will dare employ ageing workforces."

He concludes that a "cautious view would be that global competition will continue to reshape the contours of older workers' employment in uncertain ways. There will be some winners, but there are likely to be many losers. An adequate policy response will to encourage economic activity while recognising the need for a dignified exit."

Source: The Age "Job prospects on rise for older workers" (May 25, 2007)

Australia: Older Workers Show Flexibility, Willingness to Learn

Research conducted by Diversity Council Australia (DCA) shows that, for those mature age people not currently in the workforce, one third of all respondents--and 57% of those aged 60 years or under--would be prepared to return to work if they were offered the right job. In addition, one-third of currently employed mature age workers would relocate and more than half would consider doing further study for the right job.

DCA believes its research results are great news for employers and for Australia: “At a time of strong economic growth and labour shortages, there is an exciting pool of talent, ready, willing and able to work,” said [DCA Managing Director, Ms Rohan] Squirchuk. “This research combined with DCA’s expertise in workplace diversity gives employers valuable information about how to better attract and retain talent in a tight labour market.”

Key results of the project--"Grey Matters: Engaging Mature Age Workers"--include:

• Prior to retiring, the average hours mature-age people worked was 40 hours, while they would have preferred to work 35.
• Employed mature-age workers indicated their top two ideal employment practices approaching retirement would involve: flexibility in start and finish times, and phased retirement
• Around 80% of mature-age people not currently employed said working for an organisation that was supportive of their learning and development needs and careers was important or very important in influencing their decision to remain in the workplace.
• Some 97% of mature-age people indicated working for an organisation that was supportive of older workers was important or very important in influencing their decision to remain in the workplace.

Source: Diversity Council Australia Media Release (May 25, 2007)

HSBC Issues Third Annual Report on Future of Retirement in 21 Countries

The third annual HSBC Future of Retirement study finds that, far from being a drain on society, older people are huge contributors to the economic and cultural wellbeing of their nations. In fact, rather than being dependents whose care drains vital resources from nations struggling to cope with ageing populations, those in their 60s and 70s--through taxation, volunteer work and the provision of care for family members--are the foundations upon which their nations build.

With respect to employment, the report shows that globally, "large proportions of the over-60s remain in work. In mature economies, between a fifth and a half of people are still in work in their 60s. Even in transitional economies, there are large numbers active in the labour market in their 60s and 70s."

Future of Retirement: The new old age, written in conjunction with the Oxford Institute of Ageing, is available for download. In addition, country-by-country fact sheets are available at HSBC Global Forum on Ageing and Retirement website.

Source: HSBC Insurance Press Release (May 22, 2007)

United Kingdom: Call for Retirement Reform To Allow People To Continue Working Past Retirement Age

Under the auspices of the Social Market Foundation, former Civil Service Chief Lord Andrew Turnbull has issued a report that analyses a number of false assumptions which underlie thinking about retirement in the United Kingdom and that calls for a radical overhaul of employment and leadership models that will allow people to continue working past retirement age.

The report--"The New Demographics: Reshaping the world of work and retirement"--argues that current employment models, where you retire at your most senior position and leave the organisation completely, lack flexibility and are a result of widespread ageism in the workplace. Leadership models also suffer from a similar inflexibility with companies assuming they should continue to be led by their oldest employees.

The report’s author, Lord Andrew Turnbull, said:

“We need to alter fundamentally our assumptions about work and retirement and the transition between the two. A profitable decade of mixed working and retirement ought to be the dominant model of how to make the most of our flexible years, easing ourselves into a restricted income rather than plunging into it.”

Commenting, Director of Social Market Foundation, Ann Rossiter, said:

“Lord Turnbull’s report makes an important contribution to the debate about work and our ageing society, questioning the assumptions that see the skills and knowledge of older people wasted through the continuing use of outdated models of leadership and employment patterns.”

Source: Social Market Foundation News Release (May 16, 2007)

Survey: AARP on Georgia's Aging Workforce

A report developed by AARP in cooperation with the Georgia Budget and Policy Institute and the Georgia Department of Labor shows that between 2005 and 2025, fewer people will be entering the job market even as the demand for workers increases because of two trends: Georgia’s age 65+ population will be increasing considerably while its under-age-24 segment will be shrinking and, at the same time, the state’s economy will be expanding.

The report--White Collar, Blue Collar, Gray Hair: The Changing Composition Of Georgia's Workforce--written by Anita Stowell-Ritter concludes that if employers in Georgia are to maintain their competitive edge, they "will need to reach out to mature workers. Doing so may necessitate employers embracing a new vision of how work is done." The report provides a guide to the shifting landscape of work in Georgia with a compilation of employment projections, specific occupational profiles, and job trend indicators.

"We're going to have to change the culture of work because older workers are going to be the workers for the next 20 years," said Alan Essig, executive director of the Georgia Budget and Policy Institute, which also worked on the report. "The business community's going to have to figure out ways to reach older workers, or they're not going to be able to compete."

Source: AARP Research Report (May 2007)

Additional Source: Atlanta Journal-Constitution "Help wanted from older workers" (May 23, 2007)

Survey: AARP Explores Employer Readiness for Boomer Retirements in New York

According to an AARP survey conducted in late 2006, New York businesses understand the value of the knowledge and experience employees gain while working for an organization, particularly over long periods of time. Furthermore, most place a high level of importance on retaining departing employees’ wisdom and recommendations—however less than a third have an organizational process in place to preserve such institutional knowledge.

The survey--Preparing for an Aging Workforce: A Focus on New York Businesses--written by Katherine Bridges and David Cicero finds that, among other things, while 62% of employers believe their business is likely to face a shortage of qualified workers within the next five years, only 23% have taken steps to prepare for potential worker shortages due to baby boomer retirements. In addition:

• 11% say they are offering incentives to encourage their employees to delay retirement
• 72% say it is extremely or very important to retain institutional knowledge that might be lost when employees retire or otherwise leave (although only 34% have a formal process in place enabling employees to pass on their knowledge and experience before they leave
  
• 39% offer reduced work schedules for those considering retirement, mostly on an informal, case-by-case basis, but only 6% of those offering this option have a formal phased-retirement program

Source: AARP Research Report (May 2007)

Singapore: Tripartite Committee on Older Workers Releases Final Report

Singapore's Tripartite Committee on Employability of Older Worker has issued its final report, with an extensive package of recommendations to enhance the employability of older workers which have been accepted by the Government. These include introducing legislative changes within five years to facilitate opportunities for older workers to continue working beyond the age of 62, expanding the employment opportunities of older women and enhancing their employability, a higher Workfare Income Supplement payout to low income workers above the age of 55, and expanding the promotion of fair employment practices.

In addition, the Committee will continue its work for another five years. It will work towards raising the employment rate for residents aged 55 to 64 to the medium-term target of 65% (from the current 53.7%). The Committee will also work closely with the Ministerial Committee on Ageing to tackle the issues of an ageing population in a holistic manner.

The Committee's final report includes an Executive Summary and organizes its recommendations into four key strategic thrusts:

• Expand employment opportunities for older workers
• Enhance the cost competitiveness of older workers
• Raise skills and value of older workers
• Shape positive perceptions towards older workers

Source: Ministry of Manpower News Release (May 17, 2007)

Additional Sources: Channel NewsAsia "NTUC urges bosses not to wait for laws on employing older workers" (May 17, 2007)

United States: Aging Farm Workforce and Immigration Reform

"A labor shortage is already hurting Imperial Valley farmers, but an aging work force in the fields suggests the problem could become much more severe if something isn’t done soon," reports Nick Taborek. Writing for the Medill Reports, he notes that immigration legislation before the U.S. Congress could help boost the labor supply but that some farm advocates suggest that only allowing temporary workers will not help long term.

He reports that Eric Reyes, a farm worker advocate in the Imperial Valley, finds that fewer young adults are opting for the long hours and strain associated with farm work, with the average age of a farm worker being now over 50 years old. In addition,
Ayron Moiola, executive director of the Imperial Valley Vegetable Growers Association, says “You’re not seeing a younger generation take their place.”

With respect to immigration reform,

Reyes said farmers hoping to attract a younger workforce for years to come should push for a bill that grants all new workers an attainable path to citizenship. If farm workers entering the U.S. are only given temporary visas, he doubts that the labor shortage will disappear.

Mark McBroom, a citrus farmer in the Imperial Valley, said there may be no clear-cut solution to the aging workforce in the fields. Rather, the trend for younger workers to shun farm work may be simply a sign of the times.

Source: Medill Reports "Farmers fret over aging workforce in the fields" (May 21, 2007)

OECD Issues Call for Better Protection of Occupational Pension Systems

Member countries of the Organisation for Economic Co-operation and Development (OECD) have agreed on new guidelines for governments and regulators designed to improve how certain types of pension funds are run with a view to making employees’ pensions more secure. The OECD Guidelines on Funding and Benefit Security in Occupational Pensions contain a series of recommendations concerning regulation of the funding of occupational pension plans, and in particular defined benefit pension schemes.

Issues covered by the guidelines include the funding and valuation of pension plans and protection of employees’ interests in company pension schemes in the event of their employer or the company that manages their pension plan going bankrupt. The guidelines also call on tax authorities to consider raising maximum funding levels, so as to allow pension funds to build up reserves that will protect them against a downturn in asset values.

According to OECD Secretary-General Angel Gurría, “[p]eople are living longer and need to be sure that their pensions are safe.” The guidelines "will be helpful to OECD countries to ensure that occupational pension plans offer secure retirement benefits to their members.”

Source: OECD News Release (May 10, 2007)

Survey: Do Employers Really Want Older Workers?

Even though the policy community generally thinks that employers will create opportunities for employees to work longer, with many observers saying that because employers will face labor shortages and a loss of “institutional intelligence” when the boomers exit the labor force, employers will be pushed to seek out older workers, results of a new survey raise a cautionary flag.

As part of continuing research performed by the Center for Retirement Research at Boston College, a survey of nationally representative employers has found that employers generally considered older workers at least as attractive as younger workers and a second survey has found that employers expect that half their employees over age 50 will lack the resources needed to retire at their organization’s traditional retirement age and half of those who lack resources will want to work at least two years longer than similar workers have in the past.

However, further examination of the second survey in "Employers Lukewarm About Retaining Older Workers", by Andrew D. Eschtruth, Steven A. Sass, and Jean-Pierre Aubry, states that employers "are only slightly more likely than not to accommodate even half their employees who will want to stay on." The paper concludes:

For working longer to become a viable response to the retirement income challenge, workers must be willing to extend their careers and employers must be willing to employ them. The results from the Center’s surveys of employers paint a mixed picture about the prospects for longer worklives. Employers surveyed expect one quarter of workers currently in their 50s will be unprepared for retirement and will respond by wanting to stay on the job at least two years past the firm’s traditional retirement age. But employers are lukewarm about retaining even half. This is not good news. It suggests the possibility of a messy and uncomfortable mismatch with large numbers of older workers wanting to stay on while employers prefer that they do not.

Source: Boston College Center for Retirement Research
Issues in Brief (May 2007)

United Kingdom: "Zenployment" Survey Shows Older Workers Searching for "Fulfillment"

According to a survey released by Norwich Union, 66% of British employees say they are "unfulfilled", "miserable" or "drifting" in their jobs, 52% claim they'd happily earn less money in a role that made them feel better about themselves, and 47% say they aim to be in a second career that offers fulfillment and the chance to make a difference ("Zenployment") by the age of 45. William Nelson, of trend analysts the Future Foundation, said: "The ethical and spiritual dimensions of work therefore are more of a priority, and people want to believe their careers contribute towards a better future - not just for themselves but for society as a whole."

The survey also found that withdrawal from work is being rejected in favor of Zenployment, with 50% saying they will not follow the traditional retirement path of their parents and 52% not aiming to put their feet up in a country cottage or villa abroad. In addition, 66% of those aged 45-54 and 72% over 55s are seeing an increasing number of their friends move into second careers.

Source: Norwich Union News Release (May 11, 2007)

Rhode Island: Legislature Again Takes Up Unemployment Benefits and the Social Security Offset

Neil Downing, a columnist for The Providence Journal, writes again about the unfairness to older workers of Rhode Island's law offsetting unemployment benefits for social security benefits. He reports on House hearings on a measure (H5296) that would end the Social Security offset, which follows Senate passage of a similar bill (S0161). "No one spoke in opposition, but there were several supporters, including the AARP, a membership organization for people 50 and older."

Source: The Providence Journal "State law penalizing older workers" (May 9, 2007)

Subsequent History: The House passed H5296 on May 30, 2007.

Australia: ACT Launches Project To Encourage Businesses To Hire Older Workers

Australian Capital Territory (ACT) Chief Minister Jon Stanhope and Chris Peters of the ACT and Region Chamber of Commerce and Industry have launched a "Silver Lining" project to educate employers about the benefits of hiring and retaining seniors in their businesses. In particular, with the baby boomer generation nearing retirement age and the generations coming after being considerably smaller, business should not shun seniors from the workforce and they should be educated that common myths about older works are untrue.

Mr Stanhope said:

“Research shows that workers aged 55 and over are the most motivated and engaged. Older workers are known for their reliability and stability, with research showing that they stay in a job 2.4 times longer than a younger person.

“Given the high cost of staff turnover this level of stability alone represents a great opportunity for business.”

Source: Australian Capital Territory Media Release (May 8, 2007)

Norway: Statistics Show Increase in Employment of Older Workers

According to a report in Aftenposten, numbers releaed by the state statistics bureau (SSB) showed an increase in the number of older workers getting back into the job market. Faced with a labour shortage, many employers have started welcoming retirees who want to go back to work. Specifically, workers aged 67-74 boosted their share of the workforce by 4%, while there were 1.5% more workers aged 55-66 during the first quarter of 2007. The article did note, however, that most of the older workers are in part-time positions, working less than 20 hours a week.

Source: Aftenposten "Jobless rate steady" (May 4, 2007)

Switzerland: Employers Lag Behind Other European Countries in Dealing with the Challenges of Aging Workforce

According to the Adecco Institute's first Demographic Fitness Index for Swiss companies, Swiss companies are less prepared for their aging workforce than the average of selected European Union member states. Specifically, in comparison with 7 EU countries (United Kingdom, France, Italy, Spain, Germany, Belgium and the Netherlands), Switzerland only ranks second last.

By 2020, compared to the year 2000, there will be over one third more Swiss workers aged 50 to 64 years, and one fifth less workers aged 30 to 44 years. While Swiss companies' awareness about these demographic changes is very high, they are among the least prepared in Europe, with almost half of all firms putting no thought at all into this and not taking measures in order to react. In fact, most (nearly 60%) have done no analysis of their company age structure.

Source: Adecco Institute Press Release (April 17, 2007)

United Kingdom: Minister Addresses Learning and Older Workers

In a speech to the Associate Parliamentary Skills Group, Bill Rammell--Minister of State for Higher Education and Lifelong Learning--addressed the Leitch Review of Skills and specifically the challenge to engage older workers in obtaining the skills they need to succeed, given that those 50 and older are less likely than younger people to be interested in learning and tend to have fewer formal qualifications.

Rammell said that "the government is taking the needs of this group seriously" and that "[e[mployers must draw on the full range of skills and talents of the whole of the workforce" and, in fact, "will have to attract older people in order to support their own future growth." He addressed a number of government initiatives, but he rejected any need (as expressed in the Skills Forum report) to recognise that older workers learn in a different way to everyone else, a difference that should be recognised in qualification design and teaching methods: "[A]s someone approaching the accepted lower age limit for an older worker I find the idea slightly insulting. We can’t lump all older learners together to be treated differently from everyone else."

In concluding, Rammell said that he is optimistic about promoting and communicating our policies and programmes to all adults regardless of age. "It is easy to point to lower participation rates for older workers than for younger ones. But the situation is changing. Over the last 10 years the number of learners in Further Education aged 60 and above has more than doubled--from 113,000 in 1997 to almost 270,000 today." In addition, "[a]s greater numbers of older people remain in, or return to, the workforce I expect this to increase further, not least because most training is through employers."

Source: Department for Education and Skills Speech (April 25, 2007)

Survey: Twenty Percent of Workers Plan To Stay at Work until They Die

According to a financial literacy poll conducted by Bankrate, Inc., nearly 20% of individuals plan to work until death, with the percentage rising with age, so that 40% of seniors surveyed saying they will work until death. In addtion, 28% of those surveyed save less than 5%, including 16% saving nothing at all for retirement. Nevertheless, six out of ten Americans "never worry" or worry "not very much" about outliving their retirement savings and, in fact, 27% plan on quitting in their 50s.

"If you're age 65, one of the key things that keeps you coming to work is the desire to avoid touching your IRA and nest egg for as long as you can," says Tim Driver, founder of the Web site, Retirementjobs.com. "Many of these people have lived through the Depression. They grew up in an environment where watching pennies was the norm. Many of them are working for healthcare, too. It's by far and away the largest concern for that group."

Source: Bankrate, Inc. News Release (April 23, 2007)

Survey: Few Employers Are Taking Action to Recruit and Retain Older Workers; Manpower Offers Up Recommendations

According to a survey conducted for Manpower Inc. of more than 28,000 employers across 25 countries and territories, only 14% of employers worldwide have strategies in place to recruit older workers and only 21% have implemented retention strategies to keep them participating in the workforce.

The published results of the survey-- Older Worker Recruiting & Retention Survey--break down recruitment and retention by country and industry. Among different countries, employers in Japan and Singapore were far ahead of their international counterparts with 83% and 53% of employers surveyed, respectively, working proactively to retain their older employees; at the other extreme, in Italy and Spain, only 6% of employers had such strategies in place.

"Many employers have not yet recognized the need to forecast the percentage of their workforce that is set to retire in the next five to 10 years and planned ahead to stem the potential loss of productivity and intellectual capital that will occur when those people walk out the door," said Jeffrey A. Joerres, Chairman and CEO of Manpower Inc. "A surprisingly large number of organizations are still viewing upcoming retirements as cost- savings opportunities, but this is a dangerous and shortsighted view, as older adults will be relied upon as one of the most important sources of talent for the future workforce."

Simultaneously with the survey results, Manpower issued a white paper--"The New Agenda for an Older Workforce"--which explores the increasing reality of the global aging workforce, the resulting gaps in workforce supply, and the demand that this is creating. Among other things, the white paper proposes strategies that companies can adopt to circumvent these talent challenges; recommendations on how employers can help older employees extend their careers should they choose to do so; and suggestions for the role that governments can play to help solve the older worker conundrum.

Source: Manpower Inc. News Release (April 23, 2007)

Survey: Global Consumers Anxious About Retirement, Savings

Aviva, which conducts a global annual survey of consumer attitudes to savings, released findings from its latest survey showing that only 45% of its global sample are saving regularly (only 36$ in the United Kingdom), despite people in most markets agreeing that investing or saving regularly is the most practical way to live comfortably in retirement. In addition, the survey shows that:

• there are persisting high levels of anxiety over retirement, with people knowing that having enough money in retirement is important but in many countries, Eastern Europe in particular, few are taking steps to protect themselves;
• over 40% of retired people, and even more in emerging markets, wish they had done something earlier to provide for their retirement; and
• over 40% of people globally feel that financial planning for retirement is too complex.

In addition, the survey shows that in the United Kingdom, around half of those surveyed accept that they are going to have to work beyond their normal retirement date to fund their retirement.

In order to engage more consumers in financial planning for the future, Aviva has launched www.six-steps.org, a free, unbiased planning resource to help people make informed financial decisions about their retirement.

Source: Aviva PLC News Release (April 19, 2007)

Commentary: Older Workforce a Competitive Advantage for Europe

Nicholas Eberstadt, senior adviser to the National Bureau of Asian Research, and Hans Groth, member of the Board of Directors for Pfizer-Switzerland AG, suggest in a commentary in the the International Herald Tribune that while Western Europe demographic pressures are undoubtedly heavy, the aging population does not meen that the Continent need not become a glorious rest home. Since its aging population is exceptionally healthy, its people are more capable of remaining productive into their advanced years now than they used to be--perhaps even more so than their American counterparts--so that "healthy aging" may turn out to be a trump card for enhancing prosperity and international competitiveness.

In their essay, adapted from an essay to appear in the May-June 2007 issue of Foreign Affairs, Eberstadt and Groth state that, for example, Western Europeans have distinctly better odds of surviving their working years than do Americans. The prospect of living longer generally encourages investment in learning and skills and thus facilitates higher productivity. "Western Europe must therefore figure out how to capture more of the economic opportunities allowed by healthy aging."

Encouraging older people to work is an obvious and necessary step to unlocking the economic potential of good health over the next generation. But it is only one step. Making fuller economic use of this comparative advantage will require nothing less than a fundamental re-examination of many basic policies, especially regarding labor markets, education and health.

If Western Europe hopes to benefit from its growing pool of older workers, its labor markets must become far more flexible, and economically rational, than they are today. Less cumbersome regulations and less costly obligations would make it more attractive and less risky for potential employers to hire all prospective workers, including older ones. Some orderly transition to a pension system with a greater measure of direct personal responsibility in the financing of retirement would also be in order.

Source: International Herald Tribune "Healthy old Europe" (April 19, 2007)

EBRI Reports Americans Experience Retirement System Changes, but Not Responding to those Changes

According to the Employee Benefit Research Institute (EBRI), "a large percentage of American workers recognize the U.S. retirement system is undergoing major changes, but many are not adapting in ways that are likely to leave them well-positioned for a comfortable retirement." EBRI's 17th annual survey or retirement confidence, sponsored with Mathew Greenwald & Associates, finds that finds pension-plan changes by employers have left nearly half of workers less confident about the benefits they will receive from a traditional pension plan, but that many workers are counting on employer-provided benefits in retirement that are increasingly unavailable.

The report--"The Retirement System in Transition: The 2007 Retirement Confidence Survey"(EBRI Issue Brief #304)--finds tht almost half of workers are saving for retirement but that total savings and investments (not including the value of their primary residence or any defined benefit plans) of less than $25,000, and that the majority not putting money aside for retirement have little in savings at all.

“We have known for decades that major changes were taking place in the U.S. retirement system,” said Jack VanDerhei, a Temple University professor, EBRI fellow, and co-author of the 2007 Retirement Confidence Survey. “This year, we found that a substantial number of workers realize that the shift from traditional pensions to 401(k) plans affects them personally. Unfortunately, only 24 percent of those affected indicate that they will save more on their own, and only 8 percent indicate that they will save more in the employer’s plan as a result of these changes. EBRI research suggests that the vast majority of employees are likely to need some type of additional savings if they hope to end up with the same amount of retirement savings they would have expected prior to the change.”

Source: Employee Benefit Research Institute News Release (April 11, 2007)

New York: Legislature Considers Establishing Mature Worker Taskforce

The New York State state legislature is to consider establishing a mature worker taskforce among other programs aimed at confronting the state's radidly aging population. The goal of the taskforce woudl be to help guide policy to make workplaces friendlier for seniors.

The legislation to establish the Mature Worker Task Force (A5565 in the Assembly, and S3058 in the Senate) would create a 19-member task force in the State Office for the Aging to identify and address legal provisions that may limit opportunities for mature workers; identify best practices in the private sector for hiring, retaining and retraining mature workers; serve as a clearinghouse for such information; and assess the effectiveness and cost of programs that the state has implemented to hire, retain and retrain mature workers.

A separate bill introduceed in the State Assembly, A05566 (and the parallel Senate bill S03060) would establishe "a mature worker employment and training program to help workers ages 55 and older be prepared for continuing their employment after their retirement, or being trained or retrained for second careers or other work opportunities."

Source: Legislative Gazette "Budget includes major reforms for elder care" (April 16, 2007)

Japan: Expert Group Calls for Boosting Number of Elderly Jobholders

Writing for the Daily Yomiuri, Junichi Abe reports that an expert study group of the Council on Economic and Fiscal Policy has called for boosting significantly the number of jobholders, especially among women and the elderly, by diversifying the ways people can work, and tailoring jobs to fit individual lifestyles and stages in life.

With respect to older workers, the report on formulating an "action guideline to change ways of working" recommended the the employment percentage for people aged 60 to 64 should be increased to 66% by 2017 from the current 53% and that, for those aged 65 to 69, it should be raised to 47% from the current 35%.

The report also clarified the roles the government should play to enhance the ratio of jobholders among the elderly.

It says if the government-proposed bill for revising the Employment Measures Law to ban, in principle, employment discrimination due to age is enacted, ministries concerned should lose no time in working out ways to ensure effective enforcement of the law.

Source: The Yomiuri Shimbun "New ideas for aging problem: Panel's plan calls for employers, govt to help changing workforce" (April 11, 2007)

Survey: AARP Finds High Interest in Nevada in Working after Retirement Age

According to an AARP membership survey in Nevada, 32% say they are extremely (21%) or very likely (11%) to work beyond retirement, but slightly more (36%) say that for them it's not at all likely. The report was prepared by Jennifer H. Sauer, M.A., AARP Knowledge Management, for AARP Policy & Research.

In the "AARP Nevada Survey of Members: Work and Retirement", needing extra income was a major factor in the decision of those likely to continue working beyond retirement, but having health insurance coverage, building up a savings, enjoying work or the job, and paying for other health related costs are also factors influencing members to delay retirement or work again after retirement.

Employers interested in retaining or recruiting mature workers should note that AARP members in Nevada who are likely to continue working through traditional retirement indicate that flexible work schedules and incentive pay are highly influential factors in their decision to keep working. Additionally, two-thirds of those likely to keep working say a that a job allowing them to use their skills and expertise is extremely or very important to them, and half say that a job suited to family and personal life is also extremely or very important to them when thinking about working beyond retirement.

Source: Research Reports "Survey of AARP Nevada Members" (February 2007)

Australia: Second Intergenerational Report Released

The Treasurer of Australia has released Australia’s second Intergenerational Report, focusing on the implications of demographic change for economic growth and assessing the financial implications of continuing current policies and trends over the next four decades. Over the next 40 years, the ageing of the population (specifically the impact of relatively fewer people of traditional working age) is projected to slow economic growth, with real GDP per person rising more slowly than in the past 40 years, and, at the same time, spending pressures in areas such as health, age pensions, and aged care are projected to rise, due to demographic and other factors.

Among manyt other things, the report shows that the rate of mature-aged men still in the workforce rose from 60% in 1997 to more than 66% in 2005, slightly higher than the OECD average that year. The participation rate for people of traditional working age (15-64 years) is projected to rise from 76.2% in 2006-07 to 78.1% by 2046-47, mainly due to an increase in participation rates of older workers (aged 55-64 years).

Decisions by individuals to participate in the labour market are influenced by their capabilities, the incentives in government programmes and the flexibility of the labour market to match job seekers with employment opportunities and pay. Spending programmes which provide income support and the personal tax system need to have appropriate incentives to provide a return for working and to provide support, including in times of unemployment or situations of disability. The capabilities of people can be improved through better health and education. The flexibility of the labour market, the range of jobs, qualifications, hours and rates of pay also influence people’s decisions about labour force participation. Continued attention to all of these influences, as well as the maintenance of a strong macroeconomy that maximises employment opportunities, will be necessary.

Source: The Australian Government Treasury Intergenerational Report Home (April 2, 2007)

Additional Source: The Age "Retirement no option for generation of older workers" (April 3, 2007)

More Californians Are Working At or Near Retirement

A California Budget Project (CBP) report shows that Californians are working later in life than they once did. The share of Californians approaching or at the traditional retirement age--age 65 and older--who are employed increased considerably between 1995 and 2006, after a decade and a half of little change.

According to the CBP's Policy Points, “More Californians Are Working Later in Life”, this trend reflects a number of factors, including improved health and longer life expectancy, as well as diminished retirement security. While both financial and non-financial factors motivate people age 55 to 70 to work, the need for money was the most frequently cited reason for working among those in their late 50s and early 60s.

Source: California Budget Project Press Release (April 2, 2007)

Wisconsin: Effect of Aging Workforce on Milwaukee's Employers

Elizabeth Hockerman, writing for the Small Business Times in Milwaukee, Wisconsin, reports that Milwaukee employers will soon be confronted by a severe labor shortage caused by a cascade of aging and retiring baby boomers, who will be followed by a much smaller generation. Among other things, she reports on a report by Senior Service America that Wisconsin’s labor shortage will be particularly acute: “All of the growth in the working-age population of Wisconsin (by 2015) will be generated by persons 55 and older … The graying of the Wisconsin population will clearly accelerate after 2010 in the absence of a substantial increase in either domestic in-migration or a sharp rise in foreign immigration.”

Before employers look to train unskilled workers or entice college students and young professionals to stay in the Wisconsin workforce, they are going to have to work with their older employees to find ways to keep them on board even after they plan to retire.

“We are lucky in a perverse way that many boomers have not planned well enough for retirement – they will be seeking to continue to work and earn an income,” said Sammis White, director of the University of Wisconsin-Milwaukee Center for Workforce Development, associate dean of the School of Continuing Education and professor of urban planning. “But employers must be convinced that they should look to the boomers as part of the solution for the impending worker shortage. They definitely must be.”

Hockerman writes about some Milwaukee employers that are responding flexibly with, among other things, mentoring programs and plans to become an employer of choice among older workers.

Source: Small Business Times The Graying of Milwaukee (March 2, 2007)