United States: Analysis of Increased Labor Participation Rates of Older Workers

An Economic Letter ("Labor Force Participation and the Future Path of Unemployment"), authored by Joyce Kwok, Mary Daly, and Bart Hobijn, all of the Federal Reserve Bank of San Francisco, finds, among other things, that in the case of the labor force participation rate of older workers, secular trends generally overwhelm cyclical patterns. Thus, while participation of workers 55 and over consistently fell from the 1950s through the 1990s, when Social Security, pension, and retiree health benefits increased substantially and conditions were generally favorable for early retirement, in the 1990s, as the value of those retirement programs eroded, older workers reversed the downward trend, and their labor force participation rate has risen steadily, even through cyclical downturns.

Many factors potentially explain the recent increase in older-worker labor force participation. People in this age group increasingly are able to delay retirement because they are healthier and longer lived than previous generations of older workers. They have an incentive to work longer in order to build assets in defined-contribution pension plans and to qualify for larger Social Security benefits. And the rapid growth of health-care costs and decreased availability of retiree health benefits push older people to continue working in order to get health insurance, at least until they are 65 and eligible for Medicare.

Source: Federal Reserve Bank of San Francisco Economic Letter 2010-27 (September 13, 2010)

Survey: AARP Takes Closer Look at Impact of Recession on 45+ Lower Income Workers

AARP has published results of its investigation of the struggles lower-income older adults are facing during the recession. Among other things, the Closer Look June 2010 Survey found that nearly six in 10 Americans 45+ who make less than $25,000 a year say they are either "not at all" or "not too" confident they will have enough money to pay medical and living expenses in retirement, compared to 36 percent of higher income adults.

On work-related matters, 28% stopped contributing to retirement savings in the past six months, and 14% of adults 45 to 64 reported having to prematurely withdraw funds from retirement savings vehicles. In addition, with many older workers currently facing extended unemployment, 63% said that, based on what they have experienced or observed, older workers face age discrimination in the workplace.

Source: AARP News Release (September 13, 2010)

United Kingdom: Survey Suggests Small Employers Reluctant to Hire Older Workers

A quarter of the 669 United Kingdom business owners surveyed by Smallbusiness.co.uk say that they would not hire someone over the age of 60. In addition, 15% say that would "maybe" take on an older worker, while 6$ would only do so if the employee was part-time.

Peter Barnett, CEO of business strategy advisors Sales Managed, says: "Many employers have reservations that older people would be set in their ways. Some managers want their employees to do things their way and they see younger people as more ready to conform."

Juan Lobato, founder of website building firm Basekit, comments: "A factor for managers could be how much energy the person has, as energy can decrease with age."

Source: www.smallbusiness.co.uk/ News Release (September 10, 2010)

Best Practices: Integrating Generations In IT Department

Writing in CIO Insight, Don Reisinger has provided a set of practical recommendations for encourage all employees to buy into the technology strategies and process changes you have implemented--including older workers are having trouble adjusting to this new normal, and that adjustment process is probably cutting into corporate productivity. He suggests strategies that can help an IT department make older workers more comfortable with new technologies, new processes, and agile thinking.

Among other things, he encourages adoption of connected technologies, including Blackberries, Facebook, and text messaging, even if older workers are reluctant. On the other hand, however, he suggests sticking to Windows platforms that older workers may be more comfortable with. Most importantly, he says to bring in the hard data:

Prove that new processes and technologies are helping the company. Older employees want to see the organization succeed. Given proof that new solutions are working, they will be far more likely to go along with these.

Source: CIO Insight "Strategic Tech Slideshow:
Help Your Employees Leverage Technology" (September 6, 2010)

Case Study: BMW and Equipping the Factory for Older Workers

In "The Globe: How BMW Is Defusing the Demographic Time Bomb" from the March 2010 issue of Harvard Business Review, the authors looked at how BMW responded to what looked like an inevitable decline in the productivity of an aging workforce in the years ahead with an innovative, bottom-up approach for improving productivity. Subsequently, BMW has garnered more publicity for their efforts.

Rather than forcing its aging workers to retire, or even fire them, BMW management tinkered with one assembly line in one division of a huge auto plant, and turned it older overnight, staffing it so that the average age of workers would be 47 (what it's projected to be seven years from now). Then, in responses to asking the workers how to make things better, the company says it made 70 small changes in the workplace, to cut the chance of errors and reduce physical strain.

When workers said their feet hurt, the company made them special shoes, and put in wooden floors. Some got a place to sit: a hairdresser's chair, modified for the assembly line.

Rudolph Mohr, 56, has been working here for 35 years. He finally got a chance to stretch - right on the factory floor. "When I go home, I have more energy," Mohr said.

Some tools were improved, and new computer screens were introduced, with bigger type.

The direct investment in the 2017 line project was almost negligible, approximately €20,000. But the 70 changes increased productivity by 7% in one year, bringing the line on a par with lines in which workers were, on average, younger.

Source: CBS News "How BMW Deals With an Aging Workforce" (September 5, 2010)

Additional sources: BBC "A Factory Fit for an Aging Workforce"

Towers Watson Reports Improvement in Older Workers' Confidence in Retirement

A survey of U.S. workers conducted by Towers Watson finds that older workers’ confidence in their ability to retire comfortably has rebounded modestly in the past year, but confidence levels remain well below those prior to the financial crisis. Specifically, 50% of workers aged 50 to 64 are very confident about having enough resources to live comfortably five years into retirement, up from 44% in March 2009, but still down from the 63% reported in 2007.

In addition, according to "Retirement Attitudes — Part I: Confidence in Retirement," fewer older workers are now concerned about reduced or eliminated benefits in their defined benefit plans or about their employer’s ability to pay some or all benefits they’ve already earned, with the percentage of older workers who are concerned that their employer will reduce the benefits they earn in the future declined from 44% in 2009 to 39% this year, while the percentage concerned their employer will eliminate benefits they earn in the future dropped from 38% to 30%.

Source: Towers Watson Press Release (September 1, 2010)

Research: Financial and Insurance Industries Ahead of Others in Preparing for Aging Workforce

According to the latest in a series of industry-focused looks at employer preparedness for an aging workforce, researches at Sloan Center on Aging & Work at Boston College report that , the finance and insurance sector in the United States is potentially better prepared for the aging workforce than other industries. In "Talent Pressures and the Aging Workforce: Finance & Insurance Sector," the Center reports that, despite low morale following the economic downturn, firms in this sector have greater awareness of employees’ career plans, work preferences, retirement rates, and are further along in developing succession plan.

The percentage of workers in the financial and insurance industry aged 55-64 has increased by about 38% from 2000-2007, and the proportion of workers aged 65 and over has increased by about 10%, according to the research.

Source: Sloan Center on Aging & Work at Boston College Publication News (August 2010)

Research: Ignoring and Devaluing Older Workers as Age Discrimination

According to a story in the Bangor (ME) Dailiy News, a researcher is finding a different type of harassment, the isolation and resentment of older workers by younger workers. In a story written by Mal Leary, University of Maine sociology professor Amy Blackstone, who is leading an ongoing study of older Mainers in the workplace, is quoted as saying that "[t]he clearest trend that I have noticed is this issue of isolation or feeling demeaned or left out."

As a form of discrimination that sees unique to older workers, she said that the harassment is very different from that experienced by young and middle-aged workers, which principally is sexual in nature. Blackstone reports that many of the older workers she has surveyed express a sense of being "devalued" by their younger co-workers and that their life experience was not considered important to the other workers.

Source: Bangor Daily News "Older workers face different type of harassment" (August 15, 2010)

Study: Many Older Workers in Difficult or Physically Demanding Jobs Could Lose Out if Retirement Age Increases

The Center for Economic and Policy Research (CEPR) has published a study that demonstrates that a large number of U.S. workers--in particular, those in physically demanding jobs or jobs with difficult work conditions--would be adversely affected by raising the normal retirement age for Social Security. In "Hard Work? Patterns in Physically Demanding Labor Among Older Workers", researcher Hye Jin Rho found that, in 2009, 45% of workers age 58 and older had physically demanding jobs or jobs with difficult working conditions and that, among other things, these were disproportionately held by less educated, poorer, and minority workers.

The study reports that, among other things:

• difficult jobs were held by 62.4% of Latino workers, 53.2% of black workers, 50.5% of Asian Pacific American workers, and 42.6% percent of white workers.
  
• older workers with less than a high school diploma had the highest share of workers (77.2%) in difficult jobs.
  
• 56.4% of older workers in the bottom wage quintile had physically demanding jobs compared to only about 17% of those in the top quintile.
  
• 63.3% of older workers in the bottom wage quintile had difficult jobs compared to only about 25% of those in the top quintile.

According to Rho, "Many older workers are in jobs that require substantial physical effort, jobs that may not afford them the option of working into their 70s in order to get full retirement benefits."

Source: Center for Economic and Policy Research News Release (August 5, 2010)

Additional Resource: New York Times "Retiring Later Is Hard Road for Laborers" (September 12, 2010)

Recession Impairing Ability of State and Local Governments To Adjust Retireee Health Liabilities

The Center for State and Local Government Excellence has released an issue brief finding that the U.S. economy has slowed the ability of local governments to address long-term funding of their retiree health care obligations. "How Local Governments are Addressing Retiree Health Care Funding" looks at 206 jurisdictions that were had reported in 2009 that they were likely to adopt a long-term strategy to strengthen their retiree health care funding.

According to the new brief, while the economy, insufficient revenues, and competing budget priorities have posed significant impediment to their plans, many jurisdictions are making sweeping changes in their retiree health care plans. Specifically, the brief reports that:

• 36% of the jurisdictions have increased or plan to increase the years of service required to vest.
• 11% have increased the retirement age.
• 39% have eliminated or plan to eliminate retiree health benefits for new hires.

Source: Center for State and Local Government Excellence News Release (August 5, 2010)

United Kingdom: Study Finds Few Changes in Employer Age-Related Practices

In a review of employer practices since the 2006 implementation of the Age Regulations in the United Kingdom, there has been little change in most employers’ age-related policies and practices. According to Second survey of employers’ policies, practices and preferences relating to age, 2010 by Hilary Metcalf and Pamela Meadows for the Department of Business, Innovation and Skills and the Department for Work and Pensions (Employment relations research series No: 110), age continues to play a direct role in policies and practices across the range of human resource areas. In addition to retirement, it is particular common in recruitment and, due to a maximum age for pension accrual, in benefits. In addition, the percentage of establishments monitoring the age profile of their workforce has fallen from 32% to 22% since 2006.

There are some areas where the situation appears to have changed, however. These include a reduction in age-related criteria being used in redundancy selection and pay enhancements and a slight decline in the use of compulsory retirement. There has also been a growth in the number of employers’ equal opportunity policies which explicity cover ‘age’ and the use of formal performance appraisals, both of which might help guard against age discrimination.

Source: TAEN News Archive (August 4, 2010)

State Governments Changing Retirement Rules, Requiring Later Retirement

State governments are increasingly requiring many new government employees to work longer before retiring with a full pension, or are increasing penalties for early retirement, according to an article in the Wall Street Journal. As written by Jeannette Neumann, Michel Corkery, and Marcus Walker, states are responding to widening gaps between the obligations made to workers and the money expected to be available to pay them. "Though lengthening lifespans have been expected to pressure pension systems, the looming fiscal predicament has emboldened lawmakers to demand more years from employees."

Among the changes highlighted in the article:

• Illinois--lawmakers voted in March to increase the retirement age for most new hires to 67 from 60.
• Utah--new fire and public safety employees as of July 1, 2011, must work 25 years, up from 20, before getting a full pension. Most other state employees must now work 35 years instead of 30 before receiving their pension.
• Arizona--increased the "retirement rule"—worker's age plus years of service before retirement—to 85 from 80.

Source: Wall Street Journal Stressed States Are Forcing Workers to Retire Later (February 2, 2010)

Urban Institute Research on Generational Shift in Retirement Patterns

According to research published by the Urban Institute, older adults in the United States are now working longer and taking more complex routes out of the labor force. The study examines how retirement behavior changed over the past 30 years by comparing labor force exits by older workers in three different five-year cohorts--those born from 1913 to 1917 (part of the G.I. Generation), 1933 to 1937 (part of the Silent Generation), and 1943 to 1947 (the early years of the Baby Boom Generation).

In "Work and Retirement Patterns for the G.I. Generation, Silent Generation, and Early Boomers: Thirty Years of Change", co-authored by Richard W. Johnson, Barbara Butrica, and Corina Mommaerts, it is reported that more than 40% of men born 1943 to 1947 did not retire by age 65, compared with only 20% of those born 1933 to 1937. In addition, Men and women born 1933 to 1937 were much more likely than those born 20 years earlier to move to part-time work at older ages and return to work after retiring instead of following the traditional route of retiring only once directly from full-time employment.

Sixty-two is now the most common retirement age by far. More than one-fifth of men born 1943 to 47 working at age 61 retired at age 62. While average retirement ages have been creeping up recently and labor force participation rates have surged after age 62, the share of adults retired by age 62 had not fallen much, especially among men. In light of the financial benefits of working longer and overall improvements in employment prospects at older ages, it is surprising that participation rates have not increased more among men in their late fifties and early sixties. As policymakers debate the wisdom of increasing Social Security's early entitlement age, understanding why so many worker continue to retire by age 62 is a crucial research challenge.

Source: Urban Institute Press Release (August 2, 2010)

United Kingdom: HSBC Survey Finds Many Older Workers Change Careers

According to press reports, a survey conducted by HSBC shows that 30% of the UK’s 21.3 million over 50s have changed careers in their later working years and that 41% of those aged 60 to 70 have done so. While 21% of those who have changed their career did so as a result of being made redundant, 15% chose to "career shift" for a change of direction, and 11% because they were looking for a career that was less pressurized and demanding.

According to David Wells, Head of Pensions, Savings and Investments at HSBC:

As the requirement for people to work longer becomes more apparent it appears that the over 50s are embracing this head on and pursuing the careers they have always wanted. Many it seems are doing this to fill a shortfall in retirement income, but equally many are looking to embrace new skills and challenges that may now only become possible after careful financial planning during their earlier working life.

Source: The Age and Employment Network "Changing Careers Common among People Aged 50+" (July 30, 2010); HRMagazine.co.uk "Growing numbers of older workers plan upskilling in a bid for a career change" (July 30, 2010)

United Kingdom: Government Opens Process for Deleting Default Retirement Age by 2011

The United Kingdom's Coalition Government has announced plans for the elimination of the current age 65 default retirement age following a six month transition phase-out from April 2011. Employment Relations Minister Edward Davey is calling on employers, unions and other groups to have their say on a proposal that could allow many people the choice to work beyond the age of 65.



The government's proposal would still make it possible for individual employers to operate a compulsory retirement age, provided that they can objectively justify it. Examples could include air traffic controllers and police officers. In addition, in its consultation, the government asks whether it could provide additional support for individuals and employers in managing without the DRA or statutory retirement procedure. This includes the possibility of future guidance or a more formal code of practice on handling retirement discussions. Views are also being sought on whether removal of the DRA could have unintended consequences for insured benefits and employee share plans.

Click here for a full copy of the consultation.

Sources: Department for Business, Innovation and Skills Press Release (July 29, 2010); Personnel Today "Default retirement age: Employment relations minister Ed Davey writes exclusively for Personnel Today" (July 29, 2010)

Reactions: The Age and Employment Network News Release (July 29, 2010); Daily Telegraph "Scrapping retirement age opens 'Pandora's box’ of tribunal claims" (July 30, 2010)

United Kingdom: Ageism Persists According to Citizenship Survey

Figures published by the Department of Communities and Local Government (CLG) as part of the "Citizenship Survey: 2009-10" show that ageism is the biggest single factor for being discriminated against in recruitment. Four percent of all workers aged 50 and over say they have been refused a job because of their age in the past five years. Only those people aged 16-24 has a higher percentage (5%) reporting that they feel they have been discriminated against by recruiters because of their age.

Michelle Mitchell, Age UK Charity Director, said:

The spreading perception of ageism in recruitment shows that, for older workers, the job market is still not fit for purpose.

As more mature workers are pushed into the recruitment arena by the reassessment of welfare-to-work benefits, hundreds of thousands of them will risk coming up against the invisible wall of ageism.

Before forcing people to rejoin the job market or work for longer, the government must lay the foundations of a better job market for older people, with fairness and flexibility as cornerstones.

Sources: Age UK News Release (July 22, 2010); Communities and Local Government News Release (July 22, 2010)

Research: "Traditional" Retirement Recedes as More U.S. Employees Work Past 65

The Carsey Institute at the University of New Hampshire has released a study confirming that, since the mid-1990s Americans are retiring less and working longer, reversing a decades-long shift to earlier retirement. In "Older Americans Working More, Retiring Less", Anne Shattuck reports that 22% of men and 13% of women over age 65 were in the work force in 2009, an increase from 17% of men and 9% of women over the age of 65 in 1995.

When this change first became apparent, it was unclear whether it would be a temporary halt or a reversal of the decades-long decline in work at older ages. however, recent data indicate that the proportion of older adults working for pay is still growing. although the trend began in the 1990s, the current economic recession may be an important reason that it continues.

Among other things, the report points out:

• men and women work longer in both rural and urban areas<;
• those with more education work longer;
• divorce drives many women to work longer; and
• most work after age 65 is part-time, but full-time work
  is on the rise.

Source: SeacoastOnline"Still working after age 65" (July 19, 2010)

Research: Skill Shortages in Food and Accommodation Industries May Benefit from Aging Population

In published research identifying pressures from low skills, lack of training, and excess turnover in the accommodation and food sectors, the aging population was pointed out as one potential bright spot. According to "Talent Pressures and the Aging Workforce: Responsive Action Steps for the Accommodation & Food Services Sector", published by Sloan Center on Aging & Work at Boston College, the aging of the population may offer employers in this sector new opportunities to employ new workers in new ways. In particular, "[t]here is evidence to suggest that the job flexibilities available in accommodation and food services offer promise as a means of attracting these older workers."

[Employers in this sector] are experiencing even greater skill shortages than other sectors, employers in accommodation and food services appear to be responding in a more aggressive fashion in advancing flexible work arrangements. Many of these employers, nevertheless, are also operating “in the dark,” and have surprisingly limited understanding of the demographic make-up of their workforces, the skills shortages that may be on the horizon, and the competency sets of their current employees.

While he exit of older workers from accommodation and food services may exacerbate the impact of talent shortages, the impact may be minimized--and the potential for hiring seen--since tis sector is also heavily reliant on younger workers, with only 8% of its workforce in 2007 beibg aged 55 or older.

Source: Sloan Center on Aging & Work at Boston College Publication News (June 2010)

New Book Explores Industries at Risk and How to Stop Brain Drain from Boomer Retirements

For those worried about the brain drain to follow the retirement of the Baby Boomers, Ken Ball and Gina Gotsill have identified the following industries as ones most likely to feel the impace: oil and gas producers, manufacturers, educational institutions, health care, and government. Their findings, as well as proposals for how employers can assure knowledge transfers, are presented in their book Surviving the Baby Boomer Exodus: Capturing Knowledge for Gen X and Y Employees.

"Negative perceptions and image problems make industries such as utilities, oil and gas producers and marketers, and manufacturing especially vulnerable to impending Boomer retirements," the authors write. "These industries aren't drawing the people who might replace mature workers as they step away. Systemic losses, such as hiring practices and cost-cutting, compound the problem and have created an environment where knowledge gaps could impact operations."

Among other things, the book is advertised as a practical, step-by-step guide that managers and leaders can use to analyze their workforce and the impact retirements could have on business continuity. Using templates, checklists and case studies, Ball and Gotsill explore methods for assessing a company's knowledge gaps and explain how to create a knowledge retention, transfer and retrieval plan.

Sources: HR Morning "Ready for talent crisis after Boomers retire? These industries could be hardest hit" (July 16, 2010); AOL Find a Job "Dime Crunch: Baby Boomer Exodus Puts Many Industries at Risk" (July 12, 2010); Cengage Learning Press Release (June 22, 2010)

Australia: Ageism and IT Workers and Call to Increase Labor Participation Rates of Mature Workers

The Australian Computer Society has released a report revealing that Australia’s mature age participation rate in the information and communications technology (ICT) sector is below that of comparable countries such as Canada, United Kingdom, New Zealand and the United States, and calling for both a self regulatory code of practice in this area for the ICT sector, and collaboration between government, industry and the Human Rights Commission to create attitudinal change amongst Australian employers.

According to "The ACS Age Diversity Report, Improving Age Diversity in the ICT Workforce," older ICT workers (45 and over) in Australia are perceived as being less healthy or more prone to disability, being underqualified or having obsolete skills, unable to learn new skills, being over qualified, unable to adapt to new or younger work cultures, looking towards retirement so not worth training, resistant to change, and less adaptive to new technologies.

ACS CEO, Bruce Lakin said, “Ageism is a growing reality in Australia - but so is an increasing awareness that workers 45 years and older represent a resource and knowledge base we need to continue to reinvest in.

“While age discrimination can be difficult to prove, its existence, increasing pervasiveness and negative impacts on mature workers and the workplace in general is undeniable. Age discrimination creates unacceptable levels of unemployment and underemployment amongst those over 45 years which has economic, as well as social and psychological costs. With reported skill shortages within the Australian ICT sector, the underemployment of older workers is a problem which demands significant focus. I thank Brenda Aynsley, VP Membership Boards, Chair of ACS Ageism Task Force and her team for their input to the Report,” said Mr Lakin.

Among other things, the report recommends that:

1. Government, industry, industry and professional associations should partner to build a stronger Australian evidentiary base upon which to go forward – extent of ageism, impacts on unemployment, the reasons why it is happening, under-employment and hidden unemployment.
2. The development of a government policy and framework to acknowledge and quantify the cost and other impacts of ageism, economic benefits to firms from employing older workers and to educate employers and employment agents on improving age diversity in the workforce.
3. As part of its commitment to increasing the participation rate of older workers, the Government should develop policy, regulatory and taxation incentives for employers to provide ongoing professional development and to retain and/or hire older workers.

Source: Australian Computer Society Media Release (July 14, 2010)

United States: Older Workers Outnumber Teenage Workers

According to press reports, number of workers over age 65 who are in the labor force has passed the number of teenagers-—workers aged 16-19—-who are in the labor force for the first time since records were kept in 1948. According to some experts, over the past decade older workers have tended to hang on to their paychecks longer, owing to sagging stock portfolios and falling home prices. The disparity in numbers of workers in these two groups, and the high unemployment rate of teenagers, has some calling for a different minimum wage for teenagers and others for lower Social Security age, at least temporarily.

Other commentators, particularly on the New York Times Economix blog, point out that there isn't much meaning other than demographic information to this statistic. In other words, it is a natural reflection of 65 no longer being the Social Security retirement age and of a greater life expectancy. Furthermore, it is a raw number presentation, rather than a presentation of the labor participation rates of those two age groups.

Sources: San Francisco Chronicle "Working seniors outnumber teens in labor force" (July 14, 2010); New York Times "Seniors Outnumber Teenagers in Job Force" (July 15, 2010)

Research: Older Workers Good Fit for Hospitality Industry without Needing New Skills Training

A study of the employment of older workers in a range of organizations from Scotland's hospitality sector and visitor attraction centers, has found that, in terms of older workers, workforce development might best be focused on utilizing existing skills rather than acquiring new ones. According to Dr. Roy Canning of the University of Stirling, "in many cases older workers were very much the sort of people who fit in with what the hospitality industry is looking for. They are flexible and can work seasonal and odd hours for competitive wages, as the post-retirement job often is a supplement for their pension."

Older workers were found to be generally highly valued employees within organizations, especially since they could contribute experiences as former employees from related enterprises and would provide informal support of colleagues. In addition, older workers were seen as reliable with excellent customer service skill-sets and a strong work ethic, and there were few conflict situations between them and younger managers.

Canning first published results of his investigation in "Tapping older workers' experience", the summer 2010 issue of "Society Today", the journal of the ESRC (Economic and Social Research Council):

Findings further suggest there is no need to try and shape the occupational identity of older workers. A good fit can be achieved by recruitment and selection followed by appropriate training and development. Training and development interventions for older workers should, on the most part, concentrate on team building, skill utilisation within collaborative practice and encouragement of self-directed learning.

Source: University of Stirling News Release (July 9, 2010)

Nursing Shortage Masked by "Flood" of Delayed Retirements

According to a story in USA Today, the National Student Nurses' Association has issued an advisory for new nursing school grads warning them that the job market is "flooded" with experienced RNs who have come out of retirement, delayed retirement or gone from part-time to full-time employment because of the recession. Thus, many newly graduated registered nurses can't find jobs.

While large shortages of nurses are still forecast, the story also cites a June 2009 survey by the association of 2,112 spring RN graduates which found 44% hadn't yet landed a nursing job. This reinforces the findings published in 2009 by Vanderbilt University that the recession was temporarily ending a shortage of nurses, but that projected a nursing shortage of 260,000 registered nurses developing by 2025. USA Today quotes:

"It's enough to do significant interruptions to the health care system and potentially even render it inoperable," says Peter Buerhaus, the study's author and director of Vanderbilt's Center for Interdisciplinary Health Workforce Studies. He says it's critical for policy leaders to find a way to keep new nursing graduates in the profession through the recession so projected shortages aren't even worse.

Source: USA Today"New RNs find job market tight" (July 9, 2010)

Aging Workforce Can Increase ADA Compliance Costs

According to a news report, a steadily aging workforce and the requirements of the Americans with Disabilities Act (ADA) are combining to cause the Clark County (Nevada) school system to spend more time and money to accommodate its workers needs. The school's annual report on the district’s treatment of staff notes that, in 2009, the district made 55 accommodations--up from 39 in 2008.

The most common medical conditions that required accommodations were deteriorating-bone diseases or impaired vision, followed by epilepsy and diabetes. Among the accommodations made by the school system were moving people to less physically demanding positions, buying special equipment to help them do their jobs, and remodeling campus facilities.

Source: Las Vegas Sun "Aging School District workforce requires more accommodations" (July 9, 2010)

Commnetary: Raising Social Security Retirement Age, Different Effect on Knowledge Workers and Others

In his economics blog, Ezra Klein and his readers riff on a suggestion by Larry Mishel that raising the Social Security age "makes much more sense for affluent individuals who work in knowledge-oriented industries than for lower-income people whose jobs require more physical labor." This follows posts a year earlier about Klein's own oppostion to raising the retirement age" and a response to that suggesting raising the retirement age to 70.

Klein suggests pondering the suggestion and adds these talking points:

1. At what age do you want to retire?
   
2. An increase in the retirement age could lead to more people going on disability.
   
3. If we're going to increase the age at which these folks can get full Social Security benefits, we'd better figure out some solutions to make it easier for them to keep working.

Source: Ezra Klein, Washington Post "More on raising the retirement age" (July 7, 2010)

Additional Sources: MarketWatch "Fix Social Security by hiking retirement age" (July 2, 2010)

European Commission Calls for Pension Reform including Raising Retirement Age

The European Commission has called on European governments to raise the retirement age because workers are living longer and their pension systems could implode. This is just one part of a broader Green Paper on "towards adequate, sustainable and safe European pension systems" (English).

The Commission found that the fact that less than 50% of people are still in employment by the age of 60 goes against commitments made at the Barcelona European Council to postpone the age at which people stop working by five years and is inconsistent with the objective of reaching the Europe 2020 75% employment rate target.

On present trends the situation is untenable. Unless people, as they live longer, also stay longer in employment, either pension adequacy is likely to suffer or an unsustainable rise in pension expenditure may occur. The impact of the demographic challenge as aggravated by the crisis will tend to reduce economic growth and put pressure on public finances. The 2009 Ageing Report7 showed that, on account of the shrinking labour force, the only source of growth by 2020 will be labour productivity.

The report acknowledges that some European countries have already raises the eligibility age for a full pension in their public pension schemes, and that there is a growing awareness that this represents an important signal to workers and employers, which motivates them to aim for higher effective retirement ages. In addition, some countries have set an automatic adjustment that increases the pensionable age in line with future gains in life expectancy.

The EC has established a consultation and is seeking comments at its dedicated website on the Green Paper. It will analyze all responses and consider the best course for future actions to address these issues at EU level.

Source: European Commission News Release (July 7, 2010)

United Kingdom: Age Guide for Employers in Science, Engineering and Manufacturing Technologies

SEMTA, the Sector Skills Council for science, engineering and manufacturing technologies, has produced a booklet in collaboration with the Department for Work and Pensions (DWP) to guide and advise manufacturing organizations on how to comply with age discrimination regulation as well as how to ensure an age diverse workforce that will nurture future growth.

The booklet ("Age isn't an issue) provides guidance on a range of workforce issues including recruitment, development, flexible working, and retirement. Among other things, the guide encourages not only equality for job applications and opportunities within the workplace but also encourages employers to be even handed in the way they make vocational training, flexible working, and continuous professional development available.

Source: Manufacturing News "Aging workforce problems" (July 6, 2010)

Related Matter: Satellite Today "U.S. Satellite Industry Addresses its Aging Workforce Issues" (July 6, 2010)

Netherlands: Demographic Research on Age-Conscious HR Policies

According to Dutch researchers, generic policy measures that seek to accommodate older workers--for example, by offering them additional leave or reducing their workload--are often perceived and put into practice as "age conscious" personnel policies, but these actions appear to limit the opportunities of older workers, and very few organizations have personnel policies that are targeted at narrowing the growing productivity-wage gap.

In "How do employers cope with an ageing workforce? Views from employers and employees", Hendrik P. van Dalen, Kène Henkens, and Joop Schippers, used a survey of Dutch employers to examine how employers deal with the prospect of an ageing work force, and they supplemented their analysis with an additional survey of Dutch employees to compare human resource policies to practices.

Results showed that a small minority of employers are taking measures to enhance productivity (training programs) or bring productivity in line with pay (demotion). Instead, personnel policies tend to "spare" older workers by giving them extra leave, early retirement, or generous employment protection. Often, older workers who perform poorly are allowed to stay, while younger workers under similar conditions are dismissed.

Source: Demographic Research Abstract (June 4, 2010)

Research: Healthcare Industry Facing Exodus of Older Workers

According to research conducted by Sloan Center on Aging & Work at Boston College, health care employers can expect a large-scale exodus of older workers in the forthcoming years, increasing the need for skilled workers. According to "Talent Pressures and the Aging Workforce: Responsive Action Steps for the Health Care & Social Assistance Sector", authored by Stephen Sweet, PhD and Marcie Pitt-Catsouphes, PhD, the health care sector’s demographic profile is disproportionately composed of older workers, but health care enterprises report engaging in significantly less assessment of their workforces.

Our analysis reveals that many health care sector employers have only a limited knowledge of the talent pressures they are likely to face. Their talent management strategies can benefit immensely by understanding factors that could attract replacement workers, stem turnover, and facilitate knowledge transfer. In comparison to other sectors, health care sector employers are more likely to integrate some types of flexible work arrangements in their organizational designs and engage employees in decision-making activities. There is, however, considerable room for expansion. One marker of the need for further development of flexible work options is the extent that employees report work-family conflicts impeding their abilities to engage in work. Additionally, our analysis shows that older workers are attracted to jobs that have flexibility, and that considering alternate work arrangements may be a strategic means of retaining these workers (as well as workers at other career stages) and transferring knowledge between generations. By structuring jobs to match the needs of a diverse, multigenerational workforce, the health care sector can maximize their prospects of securing the best workers who possess the best skills.

Among other things, the report finds that only 29% of healthcare organizations have assessed the age of their workforces (29%), 42% have assessed the skills they anticipate needing, and 48% have assessed the competency sets of current employees, compared to 43%, 54% and 61% of employers in other industries, respectively. However, 62% of employees in the health sector have received formal training from their employers, and 36% are involved in decision-making task forces and 39% self managed teams, suggesting that the sector is at least somewhat aware of the impending skills gap.

Source: Sloan Center on Aging & Work at Boston College Publication News (June 2010)

United Kingdom: Survey Shows Older Workers Not Planning for Retirement

According to a study released by the Institute for Employment Studies, older workers in the United Kingdom aren’t planning for the future and are confused by what constitutes "the right age" to think about retirement. The study--"Should I Stay, Or Should I Go? Older employees’ later life planning in a business context"--found that the recession has altered the retirement landscape significantly as redundancies and recruitment freezes have led to higher levels of unemployment among the older workers. Among the findings of the study:

• While some respondents had a clear plan mapped out for the future of their working life and beyond, others, particularly those in their early 50s, seem to have done little in the way of forward planning. When considering retirement, two perspectives frame employees’ thinking. First, the kind of people they are in terms of age, health and family interests; and second, their particular financial and work situation.
• The individual may no longer be in the driving seat of his or her later life and retirement planning. Older workers are potentially an easy target for companies looking to cut costs, and those losing their jobs cannot afford to take the early retirement as they might have done in financially healthier times.
• Some older employees are comfortable dealing with the uncertainty and complexity inherent in the later life planning, but a greater number are rather ambivalent about whether to plan in the first place and unsure about the process.
• Line managers play a key role in supporting older employees’ planning, but they are enabled or constrained by business needs. Some interviewees conveyed a sense of feeling sidelined, watching their employer’s effort to bring in younger employees.
• Flexible ways of staying on, presented transparently as viable options, can help maintain engagement and a sense of security, as well as retain important skills and experience

According to one of the authors of the study, Marie Strebler, "[e]mployers seem to be stuck in reactive mode. They provide retirement support, however they are failing to encourage people to stay, treating requests on a case-by-case basis and thus missing opportunities to retain much needed and valuable skills."

Source: Institute for Employment Studies Press Release (June 15, 2010)

Netherlands: Social Partners Look to Raise Retirement Age to 66 by 2020

According to press reports, Dutch social partners have agreed on a flexible retirement age for second-pillar pensions and the state pension AOW by linking them to life expectancy, and the representative organizations of employers and employees said the retirement age should be raised to 66 in 2020, with decisions on further rises being made every five years.

The government, now collapsed, had proposed a rise of the retirement age to 67 in 2025 after earlier negotiations between the social partners broke down.

Under the agreed terms, workers are still allowed to retire at 65, but will receive 6.5% lower benefits, while working longer will entitle them to a 6.5% higher benefit for every additional year.

However, workers who are over 55 at the moment should still be able to retire at 65 for the full AOW benefit, the social partners added.

There are expectations that the agreement will become part of negotiations for a new government coalition after the elections. Further agreement among the employers and employees groups is still needed on increasing the perspectives of older workers on the labor market.

Source: Investments and Pensions Europe "Dutch social partners agree on retirement at 66" (July 7, 2010); Financial Times "Time to rethink wilting Dutch pension funds" (June 6, 2010)

U.S. Civil Rights Commission to Hold Hearing on Age Discrimination and Recession

On June 11, 2010, the U.S. Commission on Civil Rights will hold a public briefing of experts to examine the impact of the current economic crisis on older workers and whether potential age discrimination by employers contributes to this impact. Since older workers may experience disproportionately greater effects of company downsizing, whether real or merely perceived, the Commission will hear testimony from witnesses analyzing statistics from the Bureau of Labor Statistics and other sources, on whether older workers are less employed than in earlier years, the duration of unemployment, and whether age discrimination lawsuits have increased during the economic downturn.

Witnesses will also consider the effectiveness of the Equal Employment Opportunity Commission in enforcing the law, and the effect of recent Supreme Court decisions governing ADEA on age discrimination claims.

Source: U.S. Civil Rights Commission News Release (June 7, 2010)

Europe: Worker Survey Shows Support for Early Retirement, Oppostion to Raised Retirement Ages

Aon Consulting has released survey results showing that 29% of European workers would prefer their government not to raise the national retirement age, and would be happy to have less income in retirement. AS part of Aon Consulting's European Employee Benefits Benchmark, 7,279 workers were surveyed in Belgium, Denmark, France, Germany, Ireland, The Netherlands, Norway, Spain, Switzerland and the United Kingdom.

According to the Benchmark, 46% of Irish workers--the most of any European nation surveyed--report they never really expected to retire at 65 and expected to be working longer than their parents. This is closely followed by the British and Danish (44%) and the Dutch (41%). On the other hand, workers in other countries, including Germany, Spain, Switzerland and Belgium, showed a much lower tolerance towards working longer, with the Spanish being the most reluctant to retire later: just 18% say they have accepted this position.

The German workers are the most pragmatic, with 49% saying they will take advantage of financial products on the open market, such as annuities, at their own expense in order to be able to retire at the age they had originally planned.

Oliver Rowlands, head of retirement, EMEA, at Aon Consulting commented:

European employers should be aware that older workers bring a wealth of experience and may want to adopt a strategy for accommodating part-time working or job-sharing, for example.

But employers need to do more than this if they are going to grapple with an ageing workforce. Health and wellness initiatives such as employee assistance lines (a service for employees offering free counseling and professional advisory services), flexible benefits, occupational health initiatives and flexible working days, are all ways of helping to ensure the health and welfare of an ageing staff.

Source: AON Consulting News Release (April 26, 2010)

France: OECD Data Suggests Keeping Older Workers Working Key To Protecting Pension Systems

An Organization for Economic Co-operation and Development (OECD) look at pensions in France and abroad suggests that making it possible for older workers to keep on working is key to making pension systems more affordable. According to OECD numbers, in the 1950's, in OECD countries, there were around 7 workers on average for every retiree, but that, by 2010, this ratio had fallen to 4 to 1, and that, by 2040, this will be only 2.2 to 1.

Comparing France to other states, OECD says that In Sweden and Switzerland 7 out of 10 people aged over 50 work, while in France the figure is one in two. In addition, the the OECD average for years spent in retirement is just over 18 for men and just under 23 for women, but the French people have the longest retirement--28 years for women and 24 for men.

Source: OECD "Pensions in France and abroad: 7 key indicators" (April 10, 2010)

Research: How Encore Careers Can Help Close Labor Shortage Gaps

A series of papers has been released by Civic Ventures, focusing on the coming labor shortage in the United States and making the case that providing job opportunities for older adults to work in the types of jobs they really want to pursue will increase the likelihood that they will work past traditional retirement age and help fill this economic gap. According to the lead report--"After the Recovery: Help Needed; The Coming Labor Shortage and How People in Encore Careers Can Help Solve It"--authored by Barry Bluestone, Mark Melnik Kitty, Michael Dukakis Center for Urban and Regional Policy, Northeastern University, by 2018, there could be at least 5 million potential job vacancies in the United States, so that the nation will absolutely need older workers to step up and take them.

The research identifies 15 jobs that will provide the largest number of potential new encore career opportunities in the coming decade. The list is dominated by seven job categories in health care (registered nurses; home health aides; personal and home care aides; nursing aides, orderlies and attendants; medical assistants; licensed practical and vocational nurses; and medical and health service managers); three in education (teachers, teacher assistants and child care workers); others in nonprofits and government (business operations specialists; general and operations managers; and receptionists and information clerks); plus clergy and social and human service assistants.

The companion reports examine how creative approaches to staffing can help meet pressing problems in education, health care and the green economy, now and in the future: "How Boomers Can Help the Nation Go Green: Emerging Encore Career Opportunities in the Green Economy," produced by Council for Adult and Experiential Learning; "In How Boomers Can Help Improve Health Care: Emerging Encore Career Opportunities in Health Care," produced by Partners in Care Foundation; and "How Boomers Can Contribute to Student Success: Emerging Encore Career Opportunities in K-12 Education", produced by National Commission on Teaching and America’s Future.

“This research makes it clear that interest in encore careers can help solve long-standing social problems and an anticipated labor gap,” said Dennis White, president and CEO of MetLife Foundation [which sponsored the research]. “It’s time to think creatively about how to encourage and make use of this growing source of human talent.”

Source: Civic Ventures News Release (March 22, 2010)

United Kingdom: Survey Looks at Awareness of Rights and Work Problems of Workers Over 60

The United Kingdom's Department for Business, Innovation and Skills has published the results of a survey focusing on the views of those aged over 60 with respect to awareness of their rights, the problems experienced in the workplace and how such problems are resolved. Among the findings of "The Fair Treatment at Work Age Report" are that most workers are aware of their rights, that fewer experience problems at work, and--for most of those--problems have been resolved. Specifically:

• 82% feel well or very well informed about their rights generally compared with 78% of the main survey population;
• 72% feel they know enough about their employment rights with those aged 65-69 significantly more likely to report they know enough compared with 60-64 year olds;
• rights related to age are particularly important to older workers but the level of detail known about these rights does not differ markedly from other employment rights;
• one in five aged over 60 experienced any problem at work compared with one in three in the main survey population;
• 8% had experienced unfair treatment at work--although age was stated as the one of the main reasons for unfair treatment by 2%, this is less than experienced by those aged 16-24 (reported by 4%);
• 4% had experienced discrimination at work;
• 81% of those whose problem at work was now over or most likely over had stayed with the same employer.

Source: The Age and Employment Network "BIS Report Provides Insight into Experience of Workers Aged 60+" (March 19, 2010)

Researchers Link Work Uncertainty and Deteriorating Health in Older Workers

Downsizing and demotions at the workplace can be a health hazard for people over age 50, according to research reported in The Journals of Gerontology Series B: Psychological and Social Sciences (Volume 65B, Number 1). According to "Job Insecurity and Change Over Time in Health Among Older Men and Women" by Ariel Kalil, Kathleen M. Ziol-Guest, Louise C. Hawkley, and John T. Cacioppo, job insecurity increased the chance of harmful effects for a sample of older workers with men reacting over time with greater physical symptoms, while changes in psychological health were more prominent in women.

“Older adults in the United States are living longer and working harder,” said lead author Ariel Kalil, PhD, a professor at the University of Chicago. “Increased exposure to the labor market brings increased exposure to employment challenges.”

Specifically, the researchers looked at people born between 1935 and 1952 and found that men who experience job insecurity have higher blood pressure and higher levels of urinary catecholamines compared with men who do not experience job insecurity and women who do. Women who experience job insecurity showed higher depressive symptoms and reported more hostility, loneliness, and personal stress compared with women who do not experience job insecurity and men who do.

Source: The Gerontological Society of America Press Release (March 18, 2010)

Survey: EBRI Retirement Confidence Survey Shows More Americans To Delay Retirement

According to the Employee Benefit Research Institute (EBRI), Americans' confidence in their ability to retire appears to be stabilizing as the volatility of the recession has abated, but their self-described preparations for retirement continue to erode. Published as EBRI Issue Brief No. 340, "The 2010 Retirement Confidence Survey: Confidence Stabilizing, But Preparations Continue to Erode", EBRI's 20th annual survey, shows that, among other things, a growing number of American workers are planning to delay retirement and fewer have saved for retirement.

With respect to when they retire, 24% of those surveyed report they have postponed their planned retirement age in the past year. Reasons given include the poor economy (29%), a change in their employment situation (22%), inadequate finances (16%), and the need to make up for losses in the stock market (12%). Looked at over a longer time, the percentage of workers who expect to retire after age 65 has continued to increase--from 11% in 1991 to 14% in 1995, 19% in 2000, 24% in 2005, and 33% in 2010.

With respect to retirement savings, the survey finds that 69% report that they and/or their spouse have saved for retirement (down from 75% in 2009), 60% say that they and/or their spouse are currently saving for retirement (down from 65% in 2009). Furthermore, it finds that an increased percentage of workers report they have virtually no savings and investments, with 27% saying they have less than $1,000 in savings, and 54% percent that the total value of their household's savings and investments, excluding the value of their primary home and any defined benefit plans, is less than $25,000.

Source: Employee Benefits Research Institute Press Release (March 9, 2010)

South Korea: Government To Seek to Encourage Earlier Retirement to Boost Younger Workers

Writing in the JoongAng Daily, Jung Ha-won reports that the South Korean government is intensifying pressure on state-run companies to shed more employees before they hit retirement age to open the door for younger workers. part of its efforts to prop up the job market. The Finance Ministry is expected to unveil guidelines to discourage state-run enterprises from taking advantage of the current system to keep all their older workers on the payroll, instead of keeping only a select few senior workers deemed absolutely necessary.

“Extending the retirement age for all employees can block new employment opportunities for youth and deal a blow to the labor market,” said one Finance Ministry official who declined to be named. “We are preparing guidelines to fend off thoughtless attempts to extend retirement ages.”

In a related story, Cho Jin-seo, writing for Korea Times, reports that government is against state-run firms' moves to extend the retirement age and that the government will introduce detailed guidelines to discourage such measures.

Sources: JoongAng Daily "Gov’t to tighten older worker policy" (February 25, 2010); Korea Times "Seoul Opposes Extension of Retirement Age" (February 23, 2010)

United Kingdom: Survey Finds Increase in Forced Retirements at Age 65

A survey conducted by DNS/BMRB for Age Concern and Help the Aged suggests that the number of people aged 65-plus forced to retire during 2009 increased to more than 100‚000, a figure four times higher than the number the charity feared would be hit when the Default Retirement Age was introduced in 2006. According to the poll of people aged 60 to 70, 24% knew a friend or colleague who had been made to retire at or after 65.

Michelle Mitchell, a director at Age Concern and Help the Aged, said: “Our survey clearly shows the use of forced retirement has spiralled out of control, offering some employers a low-cost shortcut to shed jobs during the recession."

Source: AgeUK News Release (February 25, 2010)

Reversing Course? Call for Lowering Retirement Age to Boost Younger Employment in United States

Pressures of the recession on labor participation rates are leading to some calls for temporarily reducing some retirement ages in the United States to encourage older workers to leave the workforce. According to the Economic Policy Institute (EPI), the labor force participation rate for workers age 16-24 decreased from 59.1% to 54.7%, while the labor force participation rate of workers age 55 and older increased from 38.9% to 39.9%. Thus, EPI suggests:

This lost work experience is likely to have a lasting detrimental effect on the wages and occupational paths of these young workers. Congress should consider making Medicare and unreduced social security retirement available to workers at age 64 for the next two years so that older workers would be able to retire. Such a policy would have the added benefit of creating job openings for younger workers.

Separately, Rep. Dennis Kucinich (D-Ohio) called for a six-month period during which people could retire at the age of 60. With a price tag of $15 billion, he said this would create a million jobs.

"It's voluntary and the idea is that since we already know that 70 percent of people are taking early retirement at age 62, this idea that I have would say that -- just for a limited period, on a voluntary basis only -- if people want to take retirement at age 60, we calculate that maybe a million people would take that, and create a million job openings and enable people to move into the workforce, while others would have their retirement secure," Kucinich said during an appearance on Fox News.

However, according to at least one commentator (Bruce Bartlett), "To be actuarially fair, the benefits for those retiring at age 60, as Congressman Kucinich proposes, would have to be even lower, thus making it very unlikely that his plan would induce much in the way of additional retirement among employed older workers. The only ones that would be attracted to it are those that are unemployed, which necessarily means that no vacancies would be created."

Sources: Economic Policy Institute "Leaving in Droves" (February 24, 2010); The Hill "Lawmaker wants retirement age lowered to 60 for six months" (February 21, 2010); Wall St. Pit "A Bad Idea from Dennis Kucinich" (February 22, 2010)

Utah Issues Career Guide for Older Workers

Utah's Department of Workforce Services has published a career guide for older worker. Designed to meet the special needs of older workers, Workers Over 50 is a supplement to the main adult career guide from DWS, Utah Careers, and includes articles covering topics such as "Myths about older workers," "Staying current in skills and knowledge," and "Finding employment after age 50."

"As the baby boomers approach retirement age, some are choosing to retire at 65 or even earlier. Many others will continue to work long after they could retire. Some will retire, then decide, for a variety of reasons, to go back into the workforce," says Lecia Langston, contributing author of Workers Over 50. "There are many factors to consider for whatever path is chosen. This publication is meant to help with these decisions and with other issues and questions workers over 50 grapple with."

Source: Utah Department of Workforce Services News Release (February 22, 2010)

Entrepreneurship--Another Way for the Older Worker?

The Sloan Center on Aging & Work at Boston College has released a fact sheet on Entreprenuership and the Older Worker, reporting that workers aged 50 and over are more likely than their younger counterparts to be self-employed or small business owners. From 2007–2008 workers ages 54-64 experienced the largest increase in entrepreneurial activity, making it the age group with the highest entrepreneurial activity rate.

Additional findings include that 17% of older workers are independent, self employed workers, as opposed to 12 % of younger workers, and that 74% of older workers are wage and salaried employees who work for someone else, versus 83% of younger workers.

Supporting evidence for a rise in entrepreneurship among older workers may be found in the "The Babson College/Baruch College U.S. Global Entrepreneurship Monitor (GEM) Report 2008", which reported a marked reduction (around 8% to 9%) in entrepreneurial activity for individuals in the 18-44 age group and an increase of a similar amount in the 45-98 age group. In fact, this was the first year that GEM looked at entrepreneurial activity for those in the 18-99 age group, instead of just the 18-64 age group because there is growing evidence of entrepreneurial behavior past the age of 64.

Sources: Sloan Center on Aging & Work Fact Sheet (February 2010); Wall St. Journal "Older Entrepreneurs Target Peers" (February 16, 2010); New York Times "Starting Over at 55" (March 3, 2010)

Survey: Recession Easing Worries about Older Workers Leaving Utility Industry

Black & Veatch's fourth annual survey of U.S. electric power industry leaders finds that utility managers are finding that the recession is easing worries about the aging workforce as employees defer retirement. According to the “Strategic Directions in the Electric Utility Industry Survey” for 2009/2010, fewer utility managers are worried about the aging workforce issue in the immediate future, reflecting the deferral of retirement for many older workers as the declining stock market impacted their financial portfolios. However, some respondents voiced a concern about a retirement balloon in the next 2-3 years, as soon as the markets recover enough to make retirement affordable again.

Source: Black & Veatch News Release (February 18, 2010)

France: Government Looks to Pension Reform

News reports state that French President Nicolas Sarkozy has said that a bill on reforming the costly pension system would be ready by September, with one option being raising the retirement age. This will be a challenge with much popular opposition being documented.

According to an Ifop poll for newspaper Dimanche Ouest-Francea, 59% of French oppose a rise in the retirement age. In addition, another poll from BVA for broadcaster Canal+ showed that French workers and students on average expect to retire at 62, higher than the current age but earlier than in comparable European economies such as Germany, where the retirement age is 67.

Sources: Reuters "France tackles explosive debate on pension reforms" (February 17, 2010); BBC "Nicolas Sarkozy to introduce French pension reforms" (Feburary 16, 2010)

EBRI Published Research Showing Older Workers Staying in the Workforce Longer

The Employee Benefit Research Institute (EBRI) has released the results of a research study finding that the labor-force participation rate is increasing for older Americans (those age 55 and older) as older workers are faced with higher health costs and economic losses. As published in the February 2010 issue of EBRI Notes, "Labor Force Participation Rates: The Population Age 55 and Older, 2008" used U.S. Census Bureau data to determine that while the percentage of civilian noninstitutionalized Americans aged 55 or older who were in the labor force declined from 34.6% in 1975 to 29.4% in 1993, the labor-force participation rate has steadily increased since then, reaching 39.4% in 2008—-the highest level over the 1975–2008 period.

In addition, according to a summary of the findings, for those aged 55–64, the increase in participation is is being driven almost exclusively by the increase of women in the work force; the male participation rate is flat to declining. For those aged 65 and older, however, labor-force participation is increasing for both men and women.

EBRI also reports that education is a strong factor in an individual’s participation in the labor force at older ages, with individuals with higher levels of education being significantly more likely to be in the labor force than those with lower levels of education. EBRI also suggests that the upward trend is likely to continue because of workers’ need for access to employment-based health insurance and for more earning years to accumulate assets in defined contribution (401(k)-type) plans. EBRI also noted that monetary needs are not the only driver, and that there is an increased desire among Americans to work longer, particularly among those with more education, for whom more meaningful jobs may be available that can be done well into older ages.

Source: Employee Benefit Research Institute Press Release (February 18, 2010)

Survey: More Older Workers Reporting to Younger Bosses

CareerBuilder has released the results of a survey showing that four out of ten workers over the age of 35 are working for a younger boss. Looking more closely at the numbers, 53% of workers ages 45 and up said they have a boss younger than them, followed by 69% of workers ages 55 and up.

Looking at the challenges posed by the mixing of the generations, CareerBuilder reports that 16% of workers ages 25-34 said they find it difficult to take direction from a boss younger than them, while 13% of workers ages 35-44 said the same. However, only 7% of workers ages 45-54 and 5 percent of workers ages 55 and up indicated they had difficulty taking direction from a younger boss. Among the reasons why working for someone younger than them can be a challenge, those surveyed indicated that, among other things, They act like they know more than me when they don’t, they act like they’re entitled and didn’t earn their position, and they play favorites with younger workers.

"As companies emerge from this recession, it is important for employees to work together and move the business forward, regardless of their age," said Rosemary Haefner, vice president of human resources at CareerBuilder. "With so many different age groups present, challenges can arise. Younger and older workers both need to recognize the value that each group brings to the table. By looking past their differences and focusing on their strengths, workers of any age can mutually benefit from those around them, creating a more cohesive workplace."

Source: CareerBuilder Press Release (February 17, 2010)

Research: Productivity of Older Workers Decreases with Age, but Decline is Limited

A Dutch labor economist looking at age effects at the individual level by analyzing data on running and publishing in economic journals has concluded that the productivity of older workers indeed decreases with their age, but that the decline is limited, and found no evidence of a pay-productivity gap at higher ages. In "Will You Still Need Me: When I’m 64?" (De Economist), Jan C. Van Ours, of Triburg University, undertook the study to test the perception whether older workers without jobs have a harder time finding one because of A gap between wage and productivity--that is, older workers having a wage that is higher than their productivity.

To shed some light on the relationship between age and productivity I analyzed panel data on individuals and firms. To the extent that running performance represents physical productivity I find evidence of a productivity decline after age 40. To the extent that publishing in economics journals represents mental productivity I do not find evidence of a productivity decline, even after age 50. When measured at the firm level I find little evidence of an increasing pay-productivity gap at higher ages of the workforce.

Van Ours acknowledges that there are limitations of the empirical analysis, but nevertheless believes that while "the potential negative effects of aging on productivity should not be underestimated; they should not be exaggerated either." In particular, there "is no need to worry too much about age-related productivity declines or an age related pay-productivity gap." However, since older workers are not very likely to return to a job after becoming unemployed, he suggests that the labor market position of older workers will remain an area of policy concern.

Sources: SpringerLink Summary (January 9, 2010); PhysOrg.com "Older workers do not necessarily perform worse" (February 12, 2010)

Opinion: Call for More Research on How Older Workers Respond in Actual Working Conditions

Stating that too little is known about how workers manage job demands as they age and begin to lose physical and cognitive abilities., Business Insurance is calling for adequate research into older worker performance conducted in real workplaces, where all the workaday pressures are present. While there is widespread agreement that knowing more about older workers is important for employers, most studies on aging-worker performance have been completed in quiet lab environments where people are asked to complete specific tasks.

That means employers don't know enough about how aging employees are accommodating for declining capabilities. Are they jerry-rigging devices to help them lift loads or creating platforms that help them step over obstacles?

If employers are not directing such accommodations, it is possible individual worker efforts could actually be creating safety hazards for themselves and other employees.

Perhaps there are better ways to accommodate that could increase productivity. Research could help answer such questions.

Source: Business Insurance "Older workers warrant researchers' attention" (February 8, 2010)

United Kingdom: Government Seminar Stresses How Older Workers Can Advise Businesses

At a seminar on “Is business ready for an ageing nation – economic opportunities for an ageing population” led by Department for Business, Innovation & Skills (BIS), Business Minister Pat McFadden said that older people bring skills and experience to the workplace that can be an asset to business and their spending power can boost the wider economy. "We should be recognising this and looking for ways to meet their needs, and to make the most of what older workers can offer."

The overall objective of the seminar was for attendees to come up with recommendations for future action by government and business in this area and to start developing a coherent agenda for future work. George Magnus, Senior Economic Adviser at UBS, commented; “The UK needs to re-boot its ideas about how it adapts to ageing. No one is suggesting people should be compelled to work in their 70s but many do want to do just that and this could have many advantages, not least in their own financial and psychological well-being."

Sources: The Age and Employment Network News Archive (February 4, 2010); Department for Business Innovation & Skills News Release (February 3, 2010)

Australia: Boosting Older Workers Important Feature of Third Intergenerational Report

The Australian Government had issued the Third InterGenerational Report addressing many issues as it looks towards 2050, by which time the number of people aged 65 to 84 years will have more than doubled and the number of people aged 85 and over will have more than quadrupled.

In his speech introducing the report, Wayne Swan, the Treasurer of the Commonwealth, focused on areas with respect to the aging workforce: increasing productivity and increasing participation. Responding to declining productivity, Swan said "And the best way to grow the economy is to maintain our focus on productivity, on investing in skills and infrastructure--nation building, the Education Revolution and regulatory and tax reform to underpin productivity growth in the decades to come." However, acknowledging that this is not enough, Swan said that "we need to keep encouraging workforce participation."

There has been a tendency in previous reports to present the ageing of the population only as a problem to be solved.

I prefer to focus on how we can best harness the life experiences and intellectual capital of older Australians. These are Australians who have already made a massive contribution to our nation. Their experience is invaluable.

Many will choose to leave the workforce, and enjoy a well-earned retirement, for a variety of reasons. But if they want to work they should be welcomed into the workforce.

Australia has a lower rate of mature age participation than other comparable countries – like the US, UK, Canada and New Zealand. There is considerable room for improvement in this area.

Groups like National Seniors Australia – and it's good to see Everald Compton here today – have identified a range of issues that we need to consider – including raising community awareness, encouraging skills development and promoting healthy workplaces.

If we can remove the obstacles for older Australians who want to work, we not only improve the quality of their life but we also strengthen the economy. That's what our Budget changes to the work bonus were all about.

The choice for older Australians to stay in or leave the workforce should be just that – a choice, not something forced on them by prejudice or bad policy.

Sources: Treasurer of the Commonwealth of Australia Speech (February 1, 2010); The Australian "Inconvenient truth on ageing" (February 4, 2010)

United Kingdom: Report Released on Evaluating Return to Work Efforts on Behalf of 50 Plus

The UK's Department for Work and Pensions has released a report reviewing the literature to provide greater insight into how the Department's back to work provision supports the over-50s return to work has been published. The main findings of “50+ Back to work evidence review and indicative guide for secondary data analysis” prepared by Sandra Vegeris, Deborah Smeaton and Melahat Sahin-Dikmen, Policy Studies Institute, are:

• Advisory support: Older customers valued regular meetings and support with job searches, IT skills and preparing CVs. Older people with professional or managerial backgrounds were less likely to find adviser services helpful. In programmes that involved a mandatory interview with an adviser, 50+ customers were more likely to have a health condition or disability which may have restricted engagement with advisory services.
• Training: Studies reported lower than expected rates of training among 50+ customers. Few studies provided reasons for non-take up: these included perceptions of being ‘too old’ for training or disappointment with training options. Positive work outcomes attributed to participation in Work Based Learning for Adults (WBLA) (a voluntary programme) did not identify possible reasons for this favourable outcome among older participants.

Source: Department for Work and Pensions News Release (January 26, 2010)

United Kingdom: Survey Shows More Older Workers Planning To Opt Out of Automatic Pension Enrollments

A survey conducted by B&CE with respect to its United Kingdom customer views and intentions around the introduction of the National Employment Savings Trust (NEST) in 2012 show that older workers are much more likely to opt out as automatic enrollment is phased in until 2017. While only 10% within the 18-34 age group indicated that they would opt out, as did 17% of those in the 35-54 range, 42% of those 55 and older said they would opt out.

John Jory, Director of B&CE Insurance Ltd, commented: "The survey results for the higher age bands are disappointing but perhaps not surprising." B&CE suggested that for older workers might feel that it’s too late to start saving, especially with the potential negative impact of means testing.

Source: B&CE Benefit Schemes News Release (January 26, 2010)

United Kingdom: Equality and Human Rights Commission Launches New Program for Older Workers

Accompanied by research report and policy brief, the United Kingdom's Equality and Human Rights Commission (EHRC) has released its "Working Better - The over 50s, the new work generation " to open up more work opportunities for older Britons and address the challenges of an aging workforce. In so doing, EHRC has made a series proposals for fundamental changes to employment policies, including "abolishing the default retirement age, the extension of the right to request flexible working to all, overhauling employer recruitment practices to prevent discrimination and improved training and development."

EHRC's research report--"Older workers: employment preferences, barriers and solutions"--was authored by Deborah Smeaton, Sandra Vegeris and Melahat Sahin-Dikmen and finds, among other things, that of workers aged 50-75:

• 24% of men and 64% per cent of women say they plan to keep working beyond the state pension age;
• 55% cent say they are unhappy with some aspect of their working lives;
• half say the availability of part-time or flexible work would help them;
• 38% of men and 46% of women are not aware of the right to request flexible working available to adult carers; and
• 60% say they are as physically capable now to perform their jobs as when younger.

EHRC's policy briefing--"Working Better: The over 50s, the new work generation." draws on the new research and contains findings, recommendations and practical solutions for government and employers, and also features case studies from both employees and employers. In presenting its recommended solutions, EHRC states:

Tackling barriers to the employment of older people requires taking action on a number of fronts: the quality and flexibility of jobs; occupational health; retirement and pension policies; and attitudes and assumptions about the older generation. This will mean collaboration between government, employers, trade unions, occupational health experts and others.

Source: Equality and Human Rights Commission Media Release (January 25, 2010)

Canada: Economic Report on Ontario Points to Aging Workforce

The "Ontario's Long-Term Report on the Economy," issued by the Ministry of Finance, states that, among other things, Ontario's working-age population share (ages 15-64) will decrease from 69.4% of the population in 2009 to 61.5% by 2030. In absolute numbers, the working-age population is expected to increase by 13.5%, but that is about half the growth seen over the previous two decades.

Population aging and the slowing pace of growth in the working-age group could contribute to a slower rate of future real gross domestic product (GDP) growth.

Since participation in the job market is significantly lower for older age groups, population aging will be a factor in slower labour-force growth to 2030. As the large cohorts of baby boomers reach retirement age, the number of people turning 65 is projected to surpass the number entering the working-age group (at age 15) from 2017 until the early 2030s. As a result, the working-age group will grow solely because of net migration during this period.

While looking to immigration, the report also encourage policies and workplace initiatives that promote more flexible work arrangements in all segments of the working-age population and specifically put forward facilitating phased retirements as a way to encourage skilled workers to remain in the workforce longer, either full time or part time.

Source: Ontario Ministry of Finance News Release (January 22, 2010)

Australia: Government Contemplating Tax Changes to Encourage Older Workers To Remain Employed

According to The Australian, one result of a government review of taxes could be a lower marginal rate for older workers as an incentive to stay in their jobs. Speaking at a tax conference in Sydney, Ken Henry, chairman of the tax review, told attendees that "[o]lder people are less likely to be in the workforce, due to retirement or working less hours. . . . Marginal tax rates might need to be adjusted over time to ensure they reflect the changing abilities and propensities to work of different cohorts at different times in their lives."

The government's thinking is that taxes would make a bigger difference to the number of older workers deciding to remain in the workforce than it would for people of prime working age, who were likely to stay employed in any case.

Source: The Australian "Tax breaks for older workers" (January 22, 2010)

NCCI Issues Report on Workplace Injuries of Workers 65 and Older

The National Council on Compensation Insurance (NCCI) has released a new report examining how workers aged 65 and older differ from all workers in terms of their share of claims, indemnity and medical payments, frequency, and indemnity and medical severity (i.e., cost per claim). Among other things, the report--"Claims Characteristics of Workers Aged 65 and Older"--finds that:

• falls/slips/trips are by far the greatest cause of injury among older workers;
• indemnity severity is less for older workers, largely because of the lower average weekly wage of such workers; and
• medical severity is higher for older workers, although the differential between workers aged 65 and older and nearby age cohorts is small.

NCCI decided to follow up on an earlier study on workers aged 20-64, since labor participation rates of workers aged 65 and older have increased by nearly 50% since the late 1980s, and the rate for workers aged 55 to 64 has also increased (from 55% to 65%).

For safety and loss prevention managers, the increase in the number of older persons in the workforce presents both challenges and opportunities. The challenges reflect the fact that as people age there appears to be a deterioration in factors such as eyesight (in terms of acuity, peripheral vision, and depth/ color perception), hearing, muscle tone (strength, flexibility), reaction time, and mental processes (slower recall rates and less effective short-term memory).

The opportunities involve steps that can be taken to reduce the risks in the workplace for older workers that take into account these changing circumstances. For example, to reduce the risks of falls, employers can enhance lighting where necessary, install slip-resistant flooring, and provide handrails (steps that would likely benefit the safety for all workers as well). The installation of noise dampening materials may also help where hearing may be an issue (e.g., on the factory floor). Employers can also provide wellness and exercise programs and provide information and support for common health problems that may affect older workers (such as arthritis and adult-onset diabetes).

Source: National Council on Compensation Insurance, Inc. News Release (January 15, 2010)

Urban Institute Issues Series of Reports on Trends and Challenges Facing Older Workers in Recession

The Urban Institute's Retirement Policy Program recently released a number of analyses detailing new trends and challenges facing older Americans during the recession. Included in this series are:

• "Unemployment Statistics on Older Americans" As the recession has increased joblessness among older Americans, this report provides graphs and tables that report unemployment rates and how they have varied by age, sex, race, and education since 2007.
• "Work Ability and the Social Insurance Safety Net in the Years Prior to Retirement" This study examines disability benefit receipt, income, and poverty status for a sample of Americans as they age. The results underscore the precarious financial state of most people approaching traditional retirement age with disabilities.
• "Older Adults' Labor Force Participation since 1993: A Decade and a Half of Growth" Charts showing that labor force participation rates—-the percentage of adults working or looking for work—-increased sharply for older men and women between 1993 and 2009.

Source: Urban Institute Retirement Policy Program " New Employment, Social Security Take Up Rate and Disability Benefits Data" (January 15, 2009)

AARP Reports that Unemployment for Older Workers Not Improving as Recession Peaks

AARP has been tracking how older workers fare as the United States comes out of the recession. Looking at the November 2009 numbers, it found that while unemployment make have peaked, older job seekers saw their unemployment rate, duration of unemployment, involuntary part-time employment rate, and job-seeking discouragement rise. Further, looking at the December 2009 numbers, AARP reported that overall unemployment did not increase, 29,000 more persons aged 55 and over were unemployed in December than in November, bringing the total unemployment rate for this group up to 7.2% from 7.1%.

Sources: AARP Public Policy Institute Fact Sheet (December 2009), Fact Sheet (January 2010)

United Kingdom: Survey Finds Over-50s Looking to Keep Working in Flexible Retirement

According to a survey conducted by Saga, around 24% of people in the United Kingdom over 50 have rejected full retirement in favor of continuing with some paid work, as well as carrying out voluntary work and having more leisure time. In addition, according to the Saga Manifesto, which advocates the abolition of the default retirement age, almost 97% of over-50s reject the idea of working doggedly until state retirement age and greatly prefer to scale back working hours before this time.

Saga predicts that there will be a 50% increase in the number of people who take this approach to retirement during the next 10 years, with around three million over-50s combining work and volunteering by 2019. People will typically start scaling back their working hours when they are 57, with the average person carrying out 27 hours a week of paid work and eight hours of voluntary work.

Sources: Saga Media Release (January 11, 2010); UK Press Association "Over 50s taking gradual retirement" (January 7, 2010)