United Kingdom: Government Seeks Feedback on Flexible Retirement

The United Kingdom's Department for Work and Pensions has issued a consultation, seeking views on key issues raised by industry since the implementation the pension provision of the Employment Equality (Age) Regulations in December 2006, particular application of the regulations in relation to flexible retirement and pension provision. The Department believes that there is still confusion as to whether the age rules can allow more flexible retirement.

The issue is especially important, since the government considers flexible retirement key to meeting the challenges of an ageing population by providing choices and opportunities for older people to plan how they want to stop working. "Increasing the incentives to work for longer will give individuals the opportunity to plan for a longer working life and save towards a more financially secure retirement." However, because of the age rules, "[e]mployers and the pensions industry may be reluctant to implement change without case law and therefore are cautious in proposing modifications to a scheme which could be considered discriminatory or which cannot be objectively justified if challenged."

Thus, in the consulation, the Department seeks responses to, among other questions:

Q1. We would welcome your views on what you believe might constitute direct or indirect age discrimination in relation to flexible retirement.

Q2. It would also be helpful if you could indicate practices which you believe should be exempt or which could be objectively justified.

Source: Department for Work and Pensions "Flexible Retirement & Pension Provision" Consultation Document (October 10, 2007)

Ireland: Report Calls for Abolition of Mandatory Retirement

A call for an end to mandatory retirement was one of the key recommendations of the Senior Select Retain & Retrain partnership as part of its final report--"More than just a Number, Older workers in Ireland." “The impact which compulsory retirement has on people cannot be underestimated,” Age Action chief executive Robin Webster said that “[c]ompulsory retirement ages, whether in the public service or not, should be removed. It would not only give workers who wish to continue working the option to do so, but would also enable employers retain some of their most experienced and valuable staff.”

The partnership consists of Age Action, FAS, ICTU, PARTAS and Contact Recruitment, and was funded by the EU Equal Community Initiative. Other recommendations of the final report include:

• Those who are made redundant or leave the workforce should be provided with the information they need to help them make this transition;
• In facilitating diversity in the workplace, it is essential that in-company age awareness training become a routine part of good HR practice, also leading to an improvement in inter-generational communications within companies;
• Older workers need to be assisted in knowing how to sell their experiences and validate their competencies, regardless of formal qualifications;
• employers need to examine work practices and make flexible work arrangements available, inclduing part-time work;
• older workers should benefit equally from access to training and courses should be more geared towards their personal and professional development;
• there is a need for a one-stop shop for employment services for older people.

According to the Minister of Enterprise, Trade & Employment, the recommendations bear serious consideration by policy-makers, practitioners and decision-makers: "Dissemination of the findings of the project’s work and of the lessons learned will be invaluable both in the policy making process and in generating public awareness generally of the issues involved."

Sources: Age Action Ireland "Time has come to abolish the mandatory retirement age" (October 4, 2007); The Irish Times "Call for end to mandatory retirement age" (October 4, 2007); Department of Enterprise, Trade and Employment Address by Minister Michael Martin at the “Experience has a Future” Conference (October 4, 2007)

Additional Resources: Senior Select Retain and Retrain "Older Workers & Employment Agencies in Ireland" (September 2007)

U.S. Labor Department Funds Pilot Projects To Help Older Workers Gain and Maintain Employment

The U.S. Department of Labor awarded four organizations more than $3.1 million to support pilot programs designed to benefit older workers. Grantees will partner with local entities, including One-Stop Career Centers, employers, community colleges and other educational institutions, to provide older workers with skills-based job training. Certain programs also will allow participants to earn wages while learning a new career and/or provide both older workers and employers with information and skills training designed to foster productive relationships between the two groups.

Source: Department of Labor News Release (October 1, 2007)

Survey: Older UK Workers Less Likely To Take Sick Leave When They Do Not Need To

Research from Unum suggests that older workers in the United Kingdom demonstrate greater integrity than their younger colleagues when it comes to taking days of work sick when they don’t really need to. Specifically, 99% of 56 to 64 year old workers in full-time employment had not taken a single day off sick when they hadn’t really needed to in the past 12 months, while 25% of 16 to 24 year old and 17% of 25 to 34 year old workers had taken at least one day.

With respect to days taken off for genuine illness, Unum’s research revealed that older people take slightly more days off work than their younger colleagues: on average, 16 to 34 years old workers took approximately four days off a year while 45 to 54 year old workers took around seven and a half days. However, 55 to 64 year old workers took just under seven days.

Commenting on the findings from a medical point of view, Unum’s Chief Medical Officer, Professor Michael O’Donnell, said:

Occupational Health professionals have long believed that short-term absence is less frequent in older workers. This research confirms that the reason for this is that they are less likely to take time off for trivial or spurious reasons.

Source: Unum Limited News Release (October 1, 2007)

Other Sources: Health Insurance & Protection "Older workers 'take less sickies'" (October 1, 2007)

Wales: Report Issued on Importance of Older Workers To Boost Economy

As reported by Aled Blake of the Western Mail, a report issued by the Wales Management Council and Age Concern Cymru shows that more people working past the official retirement age would boost the economy in Wales. The report calls on more to follow the lead of business leaders who continue to work despite their age and warns that employers need to shed negative attitudes towards these workers if they are to capitalise on this reservoir of talent

Among other things, the report--"Older Workers in Wales"--also calls for :

• the abolition of the offical retirement age;
• training for bosses in how to help staff members to make better choices about retirement;
• the introduction of continental style phased retirement, which avoid an abrupt and “often psychologically damaging” end to a person’s working life;
• setting aside public funds to help older workers adapt their skills, with grants to help older workers in their search for suitable alternative jobs; and
• employers to change their attitudes to flexible and part-time work, while at government level, there should be changes to the state pension regulations to avoid penalising those who stay on in work past the traditional retirement age.

Source: Wesern Mail "Older workers ‘can help economy'" (September 28, 2007)

Korea: Report on Coming Skills Shortages in Manufacturing Advises Industries To Make Better Use of Older Workers

According to a an article in The Hankyoreh, the Korea Institute for Industrial Economics and Trade (KIET) has announced findings on employment policies for aging workers in South Korea’s leading companies in manufacturing industry including steel, shipbuilding and automobile suggesting that with the workforce of the nation’s manufacturing industry rapidly aging, South Korea will soon be faced with a vacuum in the manufacturing industry similar to the one experienced by Japan when that nation’s baby boom generation retired en masse.

For example, at one steel company, as sales have increased for the past three years, the amount of employees has decreased 9.7% and in the process, the average age of employees has risen to 42.1 from 40.1. At a shipbuilder, the number of department managers rose almost 10 times from 1985 to 2005, but the number of deputy managers has been cut in half, but out of the total number of the company’s manufacturing employees, the ratio of those in their 50s has increased from 16.7% in 1999 to 31.6% in 2006.

[Choi Hee-seon of the KIET] advised industries to introduce a peak salary system, in which older workers would not be forced to retire as they are now, and would be given the option of continuing to be employed with a salary decrease that inversely corresponds to their increasing age. The current system forces retirement at age 58 and offers workers an increasing salary that directly corresponds to increases in age until retirement. Choi says that using the peak salary system would allow companies to make better use of older workers. He also advised improving the work process in order to increase the productivity of middle-aged and elderly workers.

Source: The Hankyoreh "As society ages, S. Korea could face vacuum in manufacturing" (September 21, 2007)

Survey: Younger and Older Workers Appreciate Diversity of Age in the Workplace

A survey of older and younger employees in the United Kingdom shows that working in a mixed aged workforce is important for both older (66%) and younger (65%) workers with all recognizing the benefits of working with people of mixed ages. In the study commissioned by Jobcentre Plus, part of the Department for Work and Pensions, 40% of older workers believe their younger colleagues teach them skills they previously did not have, while one third of younger workers believe older workers are more likely to work anti-social hours than colleagues their own age.

Lesley Strathie, Chief Executive, Jobcentre Plus commented: "The research shows that having the right balance of age and skills can bring numerous benefits to establishing a complete workforce for both employers and employees. Both older and younger workers appreciate and learn from the qualities each brings to the workplace."

Among other findings in the study:

• Younger workers think their older colleagues bring experience (94%), reliability (66%), and understanding (63%);
• two thirds of older workers are impressed by their younger co-workers ability to learn quickly, be flexible (61%), and give them energy (51%); and
• Younger workers stated that their older colleagues were more likely to be left in charge (60%), while over half of older workers believe their younger colleagues to be more likely to take risks, with 16% commenting that they are also more likely to be given manual tasks.

Source: JobCentre Plus News Release (Sepbember 26, 2007

Related Stories: Globe and Mail "Young, old and in-between: an we all get along?" by Jim Grey September 28, 2007

AJCJobs.com "Younger boss, older worker: Cooperation, communication can overcome age differences" by Karl W. Ritzler September 28, 2007

United Kingdom: Extensive Research Study Highlights Employers' Approach to Older Workers

A qualitative study looking at how United Kingdom employers are responding to an ageing workforce carried out by the Centre for Research into the Older Workforce (CROW) and published by the Department of Work and Pensions suggests that most employers say they have positive attitudes to older workers, although they are more reluctant to recruit the over-50s and training seems to tail off for this group. Many employers claim to prefer older workers to younger ones, because of their attitudes to work and their experience. Small firms were particularly likely to keep older people on after State Pension Age.

The study--"Employer Responses to an Ageing Workforce"--was authored by Professor Stephen McNair, Director of CROW, Matt Flynn and Nina Dutton and is based on in-depth interviews with either a senior human resource (HR) manager or a general manager at one of 70 firms, across nine occupational sectors, with a wide geographical spread. According to the summary introduction to this 188-page report:

This study has found that awareness of the Age Regulations is high among employers and that, in general, most are sympathetic to avoiding age discrimination in the workplace, although many do not make the connection between this and business needs, partly perhaps because they are unaware of long term demographic trends. Attitudes towards 'older' workers were generally positive, while young people were viewed more negatively and rarely seen as victims of age discrimination. There was a good deal of change in HR practices generally, but rarely as a sole result of the Regulations. Positive practices on retention of existing workers were much more common than active policies on recruitment. Employers were most likely to be anxious about the implementation of the new provisions on retirement, and the management challenges which this might present. In this area defensive responses appeared sometimes to be having the opposite effect to that intended by Government. The attempt to minimise risk and workloads for managers was a common theme. Within the limitations of the sample interviewed, there was no evidence of regional variation in employer behaviour.

Source: Department for Work and Pensions Research Report No 455--"Employer responses to an ageing workforce: a qualitative study" (September 27, 2007)

AARP Announces 2007 Best Employers for Workers Over 50

In introducing its picks for the 2007 AARP Best Employers for Workers Over 50, AARP highlighted the number of major multi-national corporations demonstrating that enlightened policies toward 50+ employees make good business sense. Thus, for its top position, AARP named SC Johnson, a company based in Racine, Wisconsin, with operations in more than 70 countries, which, among other forward-looking practices, offers a range of flexible work arrangements that enable workers to balance their professional and personal lives--including an on-site medical center and various wellness, fitness and recreation programs; an on-site education program that provides lifelong learning and college credits; and paid sabbaticals to experienced employees.

Announcing that selection, along with the Principal Financial Group, its 9th selection, and Michelin North Americam, its 44th, AARP CEO Bill Novelli said that "[i]nternational companies that take a world class approach in their policies toward 50 and over workers understand that the result is more productive employees."

AARP alsp announced the winners of its annual Bernard E. Nash Awards for Innovation. Chosen from all applicants for the Best Employers honor, AARP singled out Mercy Health System of Janesville, Wisconsin, for flexible work options; Intuitive Research and Technology Corporation of Huntsville, Alabama, for retiree work opportunities; and Blue Cross Blue Shield Association of Chicago, Illinois, for training and development opportunities.

Source: AARP News Release (September 25, 2007)

Survey: Talent Gap Widens as Workforce Ages in G7 Countries

According to a study conducted by Towers-Perrin on behalf of AARP, as the number of workers reaching traditional retirement years increase in the G7 countries, the marketplace is experiencing a decline in the number of skilled younger workers available to fill in the ranks of those retiring. Thus, suggests AARP, employers must end age discrimination in the workplace if countries and employers are to be best positioned to thrive in the global economy tomorrow.

The study--International Profit from Experience--was released in advance of a conference on the same sponsored by AARP, in partnership with the European Commission, the Business Council for the United Nations and Nikkei. Among the survey's key findings:

• Age discrimination is the single largest barrier for those 50+ who want to continue working past their anticipated retirement age, with at least 60% of employees 50+ in each G7 country viewing age discrimination as the primary barrier to securing new jobs;
• Older workers in the G7 countries want to continue to work on average an additional 5 years;
• Surges of immigration and productivity that might offset the anticipated decline in skilled workers are unlikely to occur; and
• Allowing employees to continue working past their traditional retirement age will not only allow older workers to remain in their careers and stay active, but will have a positive impact on an employer’s bottom line.

Line Vreven, Director of AARP International, says that “While the survey clearly identifies the talent gaps emerging within G7 countries, the responses by employers do not sufficiently address this challenge.” In addition, those "nations working to actively retain older workers and are providing incentives, rather than deterrents, to their continued employment, will reap economic gain in the long-run.”

An executive summary of the full 124-page report is also available.

Source: AARP Press Release (September 25, 2007)

Census Bureau Releases Profile of Older Workers in Vermont

The Census Bureau, under the federal-state Local Employment Dynamics (LED) partnership, has launched a series of reports on workers 55 and older for more than 30 states. Vermont is the third state to be released, to be followed by Indiana, Arkansas and Hawaii. The Vermont report is available online.

Source: Census Bureau What's New (September 20, 2007)

United States: Census Figures Show More Older Workers

According to the American Community Survey conducted by the U.S. Census Bureau, nationally, 23.2% of people between the ages of 65 and 74 were in the labor force (either working or looking for work) in 2006--an increase from 19.6% in 2000.

On a regional basis, states with some of the lowest rates of older workers in the labor force included West Virginia (15.7%), Michigan (18.8%) and Arizona (19.4%), while some of the highest rates were found in South Dakota, Nebraska and Washington, D.C., all with about one-third of people in this age group in the labor force.

Among the 20 largest metro areas, Washington, D.C., had the highest percentage of people in the labor force in this age group (31.8%), followed by Boston (28.1%), Dallas-Fort Worth (27.9%), Minneapolis-St. Paul (27.4%), and Houston (26.5%).

Source: U.S. Census Bureau News Release (September 12, 2007)

Related Stories: Minneapolis Star-Tribune "Census: Retirement age doesn't mean 65" (September 12, 2007); Washington Post "Area Leads Nation in Putting Off Retirement" (September 12, 2007)

The Retirement Decisions of Two-Career Couples

Marilyn Gardner, a staff writer for The Christian Science Monitor presented a new angle on employee retirement decisions: what should dual career couples do? Overall, from a financial viewpoint, she writes that experts suggest that a staggered retirement works best. This works from the financial perspective, where leaving the workforce at different times may give one spouse time to earn more and serves as a hedge against uncertain financial markets or provide health insurance for a retired partner who is not yet 65 and thus eligible for Medicare. However, finances are not the whole story:

Couples stagger retirements for other reasons as well. "Typically the wife is a little younger and took time out for raising children," says Ronald Manheimer, executive director of the North Carolina Center for Creative Retirement in Asheville. "She came back into the workforce and is short of achieving full pension capability or is enjoying her level of accomplishment. She's not willing to give it up yet."

Source: Christian Science Monitor "Dual-career couples: Who retires when?" (September 9, 2007)

Survey Shows Flexibility of Older Workers, Openness to New Tasks

Research conducted in the United Kingdom by Talent Q, shows that older workers can often be the most flexible--that as people get older they become increasingly willing to take on new tasks and more varied roles. The research, based on in-depth analysis of over 5,700 workers, challenges the common preconception that older workers are unwilling to accommodate change and that they may be unresponsive to new challenges presented in the workplace.

In other findings, the study showed that older workers are happy to work on their own and take a leading role without the need for much guidance, and that they demonstrate a high level of ability in building successful working relationships with colleagues, clients and suppliers. "While it was shown that workers in their fifties and sixties are much less ambitious than their younger colleagues, this is probably just an indication that they have already achieved their goals or have decided that they are happy with their lot in life."

Steve O’Dell, chief executive of Talent Q, said: “Older people in the workplace might sometimes be viewed as being stuck in their ways and a little less sharp. Our research gives a very different perspective.

“Talent Q found that older workers are less preoccupied about climbing the career ladder and that they tend to be happy, fulfilled and confident. As a result, they are glad to take on new work or projects, and aren’t unduly phased by lots of changes. They tend to plough on regardless--a fact that employers are quickly discovering can be a real benefit to their business."

Source: Taent Q Age Research (September 5, 2007)

Survey: Ageism Isn't Only About Old People

According to a online poll sponsored by Age Lessons (conducted online by Harris Interactive, plus follow-up interviews by Age Lessons), younger workers [36% of 18-34 year olds] are more likely to say they experienced age discrimination than older, 35+ workers [24%]. Significantly, 93% of respondents said they had “witnessed or experienced” ageism and were hesitant to report it for reasons including a perceived inability to change the status quo, fear of being labeled a problem or getting targeted for future layoffs.

“Ageism isn't about old people, it's about all people. To avoid a ‘war of the ages' in the workplace, companies need to address generational diversity across the age spectrum and develop strategies for leveraging the richness and value-add of a diverse workforce,” noted Laurel Kennedy, Age Lessons president.

Among other findings, younger workers told interviewers that older workers seemed to be “kicked to the curb” at a disproportionately high rate during layoffs. This led them to wonder out loud about how loyalty was being repaid by employers.

Source: Age Lessons Press Release (September 5, 2007)

Economic Analysis by Federal Reserve Bank of Boston Suggests Older Workers Face Reduced Wages

A working paper issued by the Federal Reserve Bank of Boston provides strong empirical support for this hypothesis that the increasing relative supply of older workers would lower the wage premium paid for older, more experienced workers.

One consequence of demographic change is substantial shifts in the age distribution of the working age population. As the baby boom generation ages, the usual historical pattern of there being a high ratio of younger workers relative to older workers is increasingly being replaced by a pattern of there being roughly equal percentages of workers of different ages.

According to "Population Aging, Labor Demand, and the Structure of Wages" by Margarita Sapozhnikov and Robert K. Triest, econometric estimates imply that the size of one’s birth cohort affects wages throughout one’s working life, with members of relatively large cohorts (at all stages of their careers) earning a significantly lower wage than members of smaller cohorts. The cohort size effect is of approximately the same magnitude for men and for women. Their results suggest that cohort size effects are quantitatively important and should be incorporated into public policy analyses.

These results imply that older workers will face increasingly unfavorable relative labor market conditions as their ranks become crowded by the baby boom generation in the near future. Although the slowing of labor force growth may create tight labor markets, the pecuniary benefits of labor market tightness will disproportionately accrue to younger, less experienced workers. Loss of defined benefit pensions and increases in Social Security’s normal retirement age may result in baby boomers retiring at older ages than did the birth cohorts that immediately preceded them, but the boomers will suffer from the same cohort crowding effects on wages, as they consider retirement that they did earlier in their careers.

Source: Federal Reserve Bank of Boston Working Paper No. 07-08 (Abstract) (August 27, 2007)

Survey: AARP Finds Many Michigan Members Working Past Traditional Retirement Age

A mail survey of 3,000 Michigan AARP members age 50 to 62 finds that retiring comfortably at age 62 is not a reality for many of them who expect to work well past the traditional retirement age due to increased longevity and rising health care costs. In the research report written by Erica L. Dinger, J.D., AARP Knowledge Management--"What Retirement? Working and Learning for AARP Members in Michigan", of the 832 members currently working or looking for work:

• 36% work full-time and 9% part-time;
• 49% consider it extremely (27%) or very (22%) likely that they will continue working beyond retirement;
• 54% say health insurance coverage is a major factor in their decision to continue working, while 45% enjoy working, 44% need extra income, and 41% need income to pay for prescription drugs;
• 37% intend to work at their current jobs as long as possible;
• 23% think they will retire at age 60-64 and 37% at 65-69; 20% estimate retiring at age 70 or older.

Source: AARP Policy & Research (September 2007)

Australia: ACT Chief Minister Exploring Grandparental Leave

As part of an effort to examine measures to attract and retain mature workers, Austrialian Capital Territory (ACT) Chief Minister Jon Stanhope has asked the ACT Commissioner for Public Administration to examine the possibility of granting public servants unpaid leave to enable grandparents to look after grandchildren up to the age of two.

Mr Stanhope said that 2005 figures from the Australian Bureau of Statistics showed that grandparents were delivering childcare services to more than 660,000 Australian children. Grandparents cared for more than half of the one-year-olds who depended on child care and almost 40% of five-year-olds.

Almost all of the childcare undertaken by grandparents was provided at no cost.

“Our ageing workforce, and our need to retain older workers for longer, means that over time we will need to provide working conditions that better suit mature-age workers,” Mr Stanhope said.

Source: ACT Chief Minister Media Release (August 27, 2007)

Other Sources: ABC News "ACT plans grandparental leave" (August 27, 2007)

Survey: Older Workers More Satisfied with Their Jobs

A survey released by the University of Chicago study shows that job satisfaction increases with age, with workers over 65 among the most satisfied. According to the report--“Job Satisfaction in America: Trends and Socio-Demographic Correlates”--by Tom W. Smith, Director of the General Social Survey at the National Opinion Center at the University of Chicago, 86% of the people interviewed between 1972 and 2006 said they were satisfied at their jobs, with 48% saying they were very satisfied--for older workers, 71% said they were very satisfied.

Smith said that “job satisfaction is especially high among those 65 and over because most people working at that age are not those forced to still work due to financial reasons, but those who choose to do so because they like their jobs.”

Source: University of Chicago News Release (August 27, 2007)

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)