Poland: World Bank Report Recommends Raising Older Worker Participation

A report from the World Bank asserts that the main potential for increasing labor force participation in Poland is among older workers and women. If older workers in Poland were as active as they are in Germany, then the Polish gross domestic product would be up to 6% higher.

Employment is a major focus of the World Bank's report--"Europe 2020 Poland: Fueling Growth and Competitiveness in Poland Through Employment, Skills, and Innovation". A higher employment rate is also critical given the aging population and the growing life expectancy.

The difference between Poland and other EU countries is greatest in the case of older workers, which reflects in large part the, until recently, very generous rules governing early retirement. Specifically, only 35 percent of persons aged 55–64 are economically active in Poland (table 2) compared with the EU average of 51 percent, 58 percent in Chile and 62 percent in Korea (2009 data). This is a significant gap. Closing it is particularly important because the Polish population is aging, and if the gap is not closed, the pension system will be fiscally unsustainable (as will be further elaborated)

The report recommends raising economic activity among older workers (and older female workers, in particular), through reform of social security benefits and development of flexible forms of employment, particularly of part-time employment, increasing skills, and raising the retirement age--specifically by adjusting the retirement age of women to that of men (age 65).

For example, the report notes that "if the number of inactive women aged 55–59 fell by 10 percent the overall employment/population ratio would increase by nearly 0.5 percentage points. In contrast, a 10 percent fall in inactivity among women aged 20–24 would lead to a less than 0.1-percentage-point increase in the overall employment rate." Furthermore, older workers in Poland are provided with incentives to withdraw from the labor force. The availability of disability pensions and early retirement options might make inactivity the preferred choice for many older workers. I

Source: World Bank Press Release (March 21, 2011)

Gemany: Europe's First Test of Job Crunch from Aging Workforce

In an article by Larry Elliott and Julia Kollewe in the Guardian, Labor and Social Affairs Minister Ralf Brauksiepe describes how Germany needs to respond to the loss of 5 million workers over the next 15 years as it becomes Europe's first and biggest test of the problems caused by an ageing and declining population, saying that a longer working life and an influx of skilled workers from overseas were the answer to the demographic time bomb.

Since lifting restrictions on labor mobility from EU member states in eastern Europe will lead only to an extra 100,000 workers over the coming years, the phased changes in retirement age between 2012 and 2029, when 67 which will become the statutory retirement age, is most important.

"It must be clear to people that working longer than the age of 65 must be the rule," Brauksiepe said. "I am convinced that in 20 years people won't understand how people were opposed to the enlargement of the working life in 2011."

Source: Guardian"Germany faces up to problem of ageing workforce" (March 17, 2011)

OECD Pension Reforms Report Also Focuses on Older Workers

The OECD has published Pensions at a Glance 2011: Retirement-Income Systems in OECD and G20 Countries, focusing on pensions, retirement and life expectancy. Among other things, while by 2050 the average pensionable age in OECD countries will reach 65 for both sexes, life expectancy is rising even faster, outstripping the increase in pension ages by about 2 years for men and 1.5 years for women. However, as governments rein in public pension spending rising as a result of population aging, OECD warns that income from work and from private pensions and other savings.will need to fill the gap, so that ensuring that there are enough jobs for older workers remains a challenge.

According to OECD Secretary-General Angel Gurría, "Countries need to do more to fight discrimination, to provide training opportunities for older workers and to improve their working conditions . This would help employers adapt to a greyer workforce."

In addition to providing comparative indicators on the national pension systems provided in the report of the 34 OECD countries, as well as for Argentina, Brazil, China, India, Indonesia, Russian Federation, Saudi Arabia and South Africa, the report includes special chapters on issues including life expectancy, trends in retirement and working at older ages, and ways to help older workers find and retain jobs.

For example, in highlights about France, the report notes:

In addition, the participation rates of older workers aged 60 and over is low: only 19% of men aged between 60 and 64 years participate in the labor market in France compared to 54.5% on average across countries OECD. This percentage is even lower in the age group 65-69: 5.5% in France compared to 29.3% on average in the OECD. For the long-term success of reforms change in the attitudes towards older people is necessary. Employers, both private and public, must learn to see older workers as a real asset and avoid discrimination towards them, invest in their training and adjust labour market conditions and hours of work when needed.

Source: OECD News Release (March 17, 2011)

EBRI Retirement Confidence Survey Shows Continued Worker Worries, Delayed Retirement Plans

The Employee Benefit Research Institute (EBRI) reports that 27% of workers now say they are "not at all confident" about retirement, up 5 percentage points from last year. The 2011 Retirement Confidence Survey, EBRI's 21st annual survey, also published as Issue Brief No. 355, also finds that find that a significant number of workers say they now intend to retire later (at an older age) than they had planned.

Specifically, the age at which workers expect to retire continues its slow, upward trend. The percentage of workers who expect to retire after age 65 has increased over time, from 11% in 1991 and 1996 to 20% in 2001, 25% in 2006, and 36% in 2011. Of the 20% polled who say that are going to retire later than originally planned, the main reason cited was the poor economy (36%), a lack of faith in Social Security or the government (16%), a change in employment situation (15%), or because they can’t afford to retire (13%).

In addition, the survey finds more workers now expect to work for pay in retirement, with 74% reporting they plan to work in retirement (up from 70% in 2010), three times the percentage of retirees who say they actually worked for pay in retirement (23%).

Source: EBRI Press Release (March 15, 2011)

Working and Longevity May Go Hand in Hand

As Emily Yoffe writes in Slate, people who keep doing useful work may have the secret to living longer and healthier. Drawing on The Longevity Project, by psychology professors Howard S. Friedman and Leslie R. Martin, which presents the end-of-life findings of the Terman study, one of the longest-lasting longitudinal research projects ever undertaken, she finds evidence that maybe retirement should not be seen as the severing of oneself from the work of a lifetime.

Friedman dislikes that notion of retirement, and from his research he's come to believe such an attitude is bad both for society and individuals. Most "of the Terman males (given the attitudes of the times, far fewer of the women Termites worked) had solid, sometimes even exceptional careers. Interviews done with successful Termites in their 70s, several of them lawyers, showed a striking number continued to work part time."

Furthermore, Yoffe notes, those who contemplate retirement as decades filled with leisure and relaxation may be mistaken; fun may be overrated and stress can be unfairly maligned. "Many study participants who lived vigorously into old age had highly stressful jobs."

Source: Slate "Don't Stop Working!" (March 10, 2011)

Digital Divide Separates Older Workers in Job Searches According to UK Research

A study commissioned by the United Kingdom's Department for Work and Pensions (DWP) on the role of the Internet in looking for work reveals, among other things, that many older jobseekers are at a disadvantage because of the digital divide and a number of other variables. DWP's Research Report No. 726--"Job Search Study: Literature review and analysis of the Labour Force Survey"--was authored by several researchers from the University of Warwick and found that over four out of five job seekers made use of the Internet to look for work but a number of factors influenced those overall figures, one of which was age.

Focusing just on the report's findings with respect to older workers, the following results were noted:

• Younger people were more likely to use multiple job search methods than older people.
• Job seekers aged 16-29 year and older job seekers aged 50-69 years were more likely than those in their thirties and forties to nominate visiting a jobcentre, job market or training and employment agency as their main method of job search.
• Social networks as a job-search method were used slightly more by younger job seekers (notably those aged 16-29 years) than by older job seekers.
• Around 87% per cent of jobseekers aged 25-29 and 84% of 30 to 34 year olds used the Internet to search for work, while only 75% of those aged 50-54 did so, 72% of those 55-59 years old, and 62% of those 60-64 years old.

Sources: Department for Work and Pensions Press Release (March 3, 2011); TAEN--The Age and Employment Network News Archive (March 7, 2011)

New Zealand: Research on Encore Careers Finds Older Workers Happier, Healthier

In an article for The New Zealand Herald, Greg Fleming writes about encore careers and draws on a Waikato University study focused on encore careers--meaningful work, paid or unpaid in the second half of life--which has found older people who work are happier and healthier than those who don't.

Fleming also notes that the study found that not all older workers experienced smooth transitions and that some of those surveyed for the research struggled to find meaningful work, found employment agencies unhelpful, and success often depended on individual initiative. He quotes research fellow Dr. Margaret Richardson of the Waikato Management School: "Many managers had negative stereotypes of older workers believing that they were unable to change and lacked the appropriate job-seeking skills such as how to write a CV and how to present at interviews."

Richardson, along with Mary Simpson and Ted Zorn, has also presented a paper on ""Out the Door," "Back for More," or "New Horizons": Multiple Meanings for Encore Careers" at the 2010 at the annual meeting of the International Communication Association. In this paper, the authors set out preliminary findings of a study into New Zealanders’ experiences with encore careers, and the authors illustrate the different discourses and meanings that encore workers and, to a lesser extent, managers associated with their experiences in or with encore careers—in paid or voluntary work.

Source: The New Zealand Herald "Older workers choosing work over retirement" (March 6, 2011)

France: Government Adds Incentives To Increase Employment of Older Workers

In order to build on the momentum created by legislation raising the retirement age in France, French employers are are to get a €2,000 bonus from the government if they hire job-seekers aged over 45, but they also face a surcharge on their wage bill if they have too few apprentices or young trainees. According to an article in The Connexion, the bonus comes on top of €2,000 already paid by the Pôle Emploi job centre for taking on over-26s and an exemption of social charges for taking on over-45s.

The necessity for this can be found in Bruce Crumley's article Time magazine, which recounts Sarkozy's success in raising the retirement age in France by two years, but points out that this law will not succeed unless Sarkozy "persuades French bosses to play along; they have a nasty habit of dumping employees older than 50." As Crumley notes, barely 40% of French people ages 55 to 64 are in the workforce as compared to an OECD average of 54%, and U.S. and British levels of around 60%. Furthermore, he notes, there is an attitude among French employers that older employees are handicaps rather than assets continues to harden, citing a 2007 survey finding that 50% considered 45-to-55-year-old workers already old.

Crumley follows up with remarks from Sorbonne sociology professor Anne-Marie Guillemard, author of "The Challenges of Aging: Age, Employment and Retirement," focusing on how many people approaching 50 are marginalized with busywork by employers, and what might need to be done about that. "Aging employees don't want to stop working, but when they see more than a decade of dead-end activity awaiting them in a place that wants them gone, most accept some sort of agreement terminating their job in exchange for a payout," says Guillemard, and then collect unemployment and other assistance until they reach pension age.

In French

Sources: Time Magazine "France's Labor Paradox" (March 14, 2011); The Connextion "€2,000 for hiring older workers" (March 2, 2011)

Europe: Survey Shows Age Most Widely Experienced Discrimination

Age UK has released results of a survey showing that age discrimination is rife in Europe. Some 64% of those interviewed in the UK and 44.4% across Europe judged age discrimination as a serious problem, making it the most widely experienced form of discrimination. Even though there is heightened awareness of ageism as an issue, the European Social Survey (ESS) data analysed for Age UK by the University of Kent shows that people in later life continue to face many subtle forms of prejudice which perpetuate the idea of older people as passive, needy and frail.

Employment is an area where age discrimination is a huge problem, despite recent legislation tackling the issue. The majority of those interviewed said they would find it easier to accept a suitably qualified 30-year-old as a boss than a 70-year-old with exactly the same qualifications. People over 50 felt extremely concerned that employers would always prefer to hire a person in their 20s rather than an older person. In the UK 49.7 per cent of those interviewed cited this as a problem.

Among other things, the report warned that subtler types of prejudice are as harmful as overt discrimination as they make it difficult for older people to feel empowered and able to assert their preferences and choices.

Source: Age UK News Release (March 3, 2011)

South Korea: Government Thinking about Raising Retirement Age

According to news reports, the South Korean government is cconsidering raising the average retirement age to 60 from the current average of 57 to lessen the impact of the retirement the country's baby boomers. Bae Ji-sook, writing for The Korean Herald, states that, while The "Baby Boomer Committee"--an affiliate of the Economic and Social Development Commission, a group representative of employers, employees and the government--is planning to submit a related bill to the National Assembly, he notes that the plan is expected to face fierce opposition from both employers and employees.

This is not a new conversation, as the article refers to a 2010 survey by online recruiter SaramIn of member employers. According to that, 61.4% said a rise in retirement age was necessary, and about 49% said they needed the skills and experience of older workers, followed by companies seeking stability, craftsmanship and other qualities.

Kim Rahn, writing for The Korea Times, states that the Korea Employers Federation opposed setting a legal retirement age.

“We acknowledge the need for older people to remain in the labor market. But those workers usually receive higher wages according to the seniority system, so extending the retirement age through fixing it by law will weaken corporate competitiveness,” an official of the federation said.

“Instead, we propose the government prepare measures to reduce companies’ labor cost burden, such as not turning non-regular job status of workers aged over 55 into regular ones after two years of employment.”

Sources: Korea Herald "Korea may raise retirement age to 60: report" (February 28, 2011); The Korea Times "Legislation sought to change retirement age to 60" (February 28, 2011)

South Korea: Report Warns of Aging Teaching Workforce

According to an article by Lee Ji-yoon in The Korea Herald, the Korean Educational Development Institute has issued a report, warning that South Korea's teaching workforce was getting older. Specifically, in 2010, the average ages of teachers at kindergartens, elementary, middle and high schools were 31.8, 39.7, 41.3 and 41.5, respectively, reflecting increases since 2000 of 2.5 years, 0.8 years, 2.9 years and 1.7 years, respectively.

“Given that the aging teaching workforce is becoming a universal problem found in OECD member states, the Korean government needs to take follow-up measures to fill the potential teacher shortages,” the report said.

Universities have seen the largest change in older workers, with the percentage of teachers over 50 increasing from 29.5% ten years ago to 45.3% in 2010. For other teaching levels, those in their 50's and 60's increased from 19.8% to 21% in elementary schools, from 13.9% to 21% in middle schools, and from 14.4% to 22.9% for high schools.

Source: The Korea Herald "Report warns against aging teaching workforce" (February 25, 2011)

Canada: Study Finds that Economic Pressures Cause Many Older Workers To Retire Early

A study published by the Institute for Research on Public Policy (IRPP) finds that older workers who face sudden layoff rarely match their previous earnings upon reemployment, that their earnings tend to stagnate in subsequent years, and that the situation drives many to retire early. According to "Labour Force Participation of Older Displaced Workers in Canada: Should I Stay or Should I Go?", IRPP Study No. 15, written by Ross Finnie and David Gray, such hastened retirement will further slow labor force growth, which is already beginning to wane due to population aging, thus reducing economic growth and putting additional stress on public and private pension plans.

Finnie and Gray report that, among those aged 45 to 59 (who are not eligible for Canada Pension Plan benefits), about one-quarter have "retired" within five years after being layed off, in the sense that they rely on pensions as their primary source of income. This proportion rises to nearly 70% in the 60 to 64 age group.

The authors lay out four policy options to address the question of whether older displaced workers should retire early (by choice or by force) or continue to work:

1. Encouraging older displaced workers to retire early, aided by government subsidy, which amounts to very long-term income maintenance until they reach normal retirement age.
2. Providing passive employment insurance benefits.
3. Providing active employment insurance benefits.
4. Providing wage insurance.

IRPP also has available online an interview with the authors.

Source: Institute for Research on Public Policy Press Release (February 24, 2011)

Construction Gap Forecast in British Columbia as 31,000 Older Workers Leave by 2020

A report issued by the Construction Sector Council states that, from 2011 to 2019 period, 31,000 workers will exit British Columbia’s construction industry workforce due to retirements. While two-thirds of of the province's labor requirements will be filled by an expected 22,400 new entrants to the workforce, the retirements will leave a gap of 10,000 workers that will need to be recruited from outside the local construction market to meet labor requirements.

According to "Construction Looking Forward: An assessment of construction labour markets for British Columbia from 2011−2019," in other respects, the construction industry will grow at a manageable pace for the next several years, thanks mainly to mining and utilities-related projects, and a modest housing recovery.

Source: Construction Sector Council Press Release (February 21, 2011)

Study: Older Workers Deal with Stress Better

A researcher at the University of Manchester Business School says that her research is finding that older workers are better at coping with emotional stress and burnout than their younger colleagues. According to Dr. Sheena Johnson, this is particularly the case in customer service industries, where employees often face high levels of conflict and stress, and older workers find their roles less emotionally draining and have less cynical attitudes towards customers than younger employees.

According to Dr. Johnson:

As life expectancy and the average age of the population increases, the age of the working population rises - it’s vital employers understand how they can benefit from employing older workers. For instance encouraging older workers to act as mentors could significantly improve emotional burnout and stress with younger members of a team.

Source: University of Manchester Business School News Release (February 7, 2011)

Other References: An older book with a contribution by Dr. Johnson:

EBRI Research Finds Participation Rates for Workers Over 55 Increased During Recession

According to research by Employee Benefit Research Institute (EBRI), labor force participation rate continued to increase for workers 55 and older even after the economic downturn of 2008–2009. The article "Labor-Force Participation Rates of the Population Age 55 and Older: What Did the Recession Do to the Trends" by Craig Copeland, published in the February 2011 issue of EBRI Notes, notes that for those ages 55–64, the increase is almost entirely due to an increase in women in the work force, but that for those age 65 and older, labor-force participation increased for both males and females.

Education is a strong factor in an individual’s participation in the labor force at older ages: Individuals with higher levels of education are significantly more likely to be in the labor force than those with the lower levels of education. This disparity increased from 1987–2009 for those without a high school diploma, as their rate declined while those with higher levels of education had a participation rate that stayed the same or increased.

This 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 401(k)-type plans, particularly after the stock market and economy downturn in 2008.

Source: Employee Benefit Research Institute Press Release (February 17, 2011)

California Hospitals: Aging Workforce Leading to Shortage of Healthcare Workers

The California Hospital Association (CHA) has released a report showing that, over the next five years, California hospitals could face a shortage of allied health care workers because of an aging medical work force and other factors. According to "Critical Roles: California's Allied Health Workforce," which summarizes the findings from the CHA Allied Health workforce Survey, the Survey "included two items asking about the average age of employees and the number expected to be eligible for retirement (using 62 as the age for eligibility) in the next one, three and five years for each of the selected allied health occupations."

The data show that the average age in these occupations ranged from 36.9 years for pharmacy technician in urban hospitals to 50.5 years for CLS in rural hospitals. For almost all occupations there is a difference in the average age based on the geographic location of the facility: the rural workforce is almost uniformly older by comparison. For some occupations, the difference is marked, including pharmacist and pharmacy technician, and to a slightly lesser extent CT technologist and MRI technologist

In addition, CHA finds that more than 2,600 allied health employees in the selected categories are expected to be eligible for retirement
within the next five years; this translates to roughly 12.5% of the total number of FTes reported by survey respondents.

Sources: California Hospital Association News Release (Feburary 10, 2011); California HealthLine "Report: Calif. Hospitals To Face Shortage of Allied Health Workers" (February 10, 2011)

German Employers Need To Ensure Employment Policies Attract Older Workers

In an article in Deutsche Welle, John Blau reports that, as the days of allowing workers in Germany to retire as early as age 55 are long gone and as many employees begin to suffer from chronic aches and pains in their mid-50s and, increasingly, from mental fatigue, employers must do more to retain them and keep them productive on the job. Thus, according to Michael Stolpe from the Kiel Institute for World Economy:

"Companies in Germany will need once again to invest more in the healthcare of their employees, as they used to do before competition forced some big changes in the labor market," he told Deutsche Welle. "Back then, employees stayed longer with companies - sometimes their entire career - and employers, in turn, took good care of them. It was a win-win situation."

In addition, Blau quotes Christiane Flüter-Hoffmann from the Cologne Institute for Economic Research as saying that companies will need to become "more attractive" to employees and potential hires. Among other things, this "begins with managers who can motivate and ease stress," but she also pointed to the need for human resource development strategies tailored to an older workforce. "In many companies, training ends at age 45."

Source: Deutsche Welle "Aging Germany must keep older workers healthy and happy" (February 1, 2011)

Australia: Report on Age Discrimination in IT Industry

Australia's Information Technology Contracting & Recruiting Association (ITCRA) has issued a discussion paper on the information and communication technology industry's lacks of a strong representative mature age workforce, noting that the reasons are not as clear-cut as some have suggested in the past and basing programs on incorrect assumptions may do more harm than good. According to "Mature Age Workers in ICT: Foundations, Effects and Approaches to Ageism," ITCRA has identified a range of initiatives that ICT recruiters, employers and supporters can put in place to address ageism and other forms of discrimination. In addition, the paper suggests further research that will help to improve the quality of understanding in this field of discrimination.

Highlighting the disparity, while 46% of Australian workers are aged 25-44, 63% of the ICT workforce falls in this age range; 22% of all workers are 45-54, but only 18% of ICT workers are; and 18% of all workers are 55-64, only 7% of ICT workers are.

For recruiters, fair discrimination is part of the job—but it must navigate the legal passage between unlawful discrimination based on stereotyping and professionally finding the best person for the job by effectively assessing skills, talents and abilities.

And the report also suggests that older workers can help too, saying that the statistics suggest that rather than being a case solely of employers and recruiters discriminating against workers, workers may also be self-selecting to not continue working in ICT beyond "prime age" for a range of reasons.

Sources: Information Technology Contracting & Recruiting Association Media Release (February 8, 2011); ITWire "Wrinkles rankle recruiters" (February 8, 2011); Lifehacker "How Badly Do IT Employers Discriminate Against Older Workers?" (May 18, 2011)

Study: Advice to Government Employers about Engaging a Multi-Generational Workforce

The IBM Center for the Business of Government has released a study on generations in the workplace, which details how each of the four generations brings a different set of skills and life experiences to the workplace which can be used positively to increase diversity of knowledge and perspectives. The report--"Engaging a Multi-Generational Workforce: Practical Advice for Government Managers" was authored by Susan Hannam, Dean, College of Health, Environment, and Science, Slippery Rock University, and Bonni Yordi, Director, Surveys and Business Research MRA–The Management Association.

According to Hannam and Yordi, in order to successfully lead in 21st century organizations and engage employees, government executives need to be aware of the major differences between generations. "While there have always been multiple generations in the workplace, what is drastically different today is the rapid influx of technology–savvy employees
and the resultant cultural, social, and attitudinal changes they bring." They offer a number of practical tips for executives managing Traditionalists (those 66 and older), Boomers, Gen X, and Millenialists (also known as Gen Y) employees in the following areas:

• Communications--each of the four generations now in the workplace have different preferences on how they like to both receive and send communication, as well as how they like to interact with colleagues.
• Work-Life Balance--Each of the four generations has different work-life balance needs and the flexible work arrangements should be designed to meet the specific needs of the four generations.
• Growth and Development-- Each of the four generations has different learning styles and preferences as to how they like to obtain information and knowledge.
• Providing Recognition and Rewards--A multi-generational workplace requires organizations to develop new types of reward and recognition programs, including rewarding contribution.
• Employee Engagement--A multi-generational workplace requires organizations to increase their mentoring initiatives and offer various types of mentoring programs, including opportunities for younger generations to mentor older generations, for example, in the uses of new social media technologies.

In addition, click on the link for an interview on The Federal News Radio.

Source: IBM Center for the Business of Government Blog Poat (February 1, 2011)

Paper Reports on How 50+ Workers Fared in 2010

According to a study released by the Urban Institute, unemployment rates remained high for the 47.5 million workers age 50 and older in 2010, and more than half of unemployed workers this age were out of work for more than six months and nearly a third were out of work for more than a year. "How Did 50+ Workers Fare in 2010?"--authored by Richard W. Johnson and Janice Park--also showed that workers age 50 to 61 have fared worse than those age 62 and older since the Great Recession began in December 2007.

In 2010, 2.0 million men age 50 and older were unemployed. Unemployment crept up for all men in 2010 but generally increased more for older workers than younger workers.

• The unemployment rate for men age 50 to 61 increased to 8.3 percent from 7.8 percent in 2009 and 3.2 percent in 2007.
  
• The rate for men age 62 and older increased to 7.3 percent from 6.6 percent in 2009 and 3.3 percent in 2007.
  
• Unemployment did not increase for men age 25 to 49.

Older men with limited education—especially those younger than 62—were much more likely to be unemployed than college graduates. For example, the rate at age 50 to 61 for college graduates was 5.2 percent, compared with 10.1 percent for high school graduates and 14.2 percent for those who did not complete high school.

Source: Urban Institute Summary (February 1, 2011)

New Zealand: Universities Confronting Aging Academic Workforce

Universities New Zealand - Te Pōkai Tara (Universities NZ) has released a report prepared for it by Business and Economic Research Limited (BERL) showing that the universities are facing a shortage of academic staff over the next ten years due to an aging academic workforce and other factors. In addition, the report--"Academic Workforce Planning - Towards 2020"--notes that, coupled with lower funding relative to countries like Australia, the aging workforce is a threat to the future quality of university education and research in New Zealand.

Among other things, the report found that 43% of the academic workforce is over 50 and 15% is over 60, that the number of older academic staff is growing and the inflow of younger academics is not keeping pace, and that the academic workforce is aging like other professions but is an older workforce to begin with. Since an aging academic workforce is a global trend and the academic workforce operates within a global labour market that is becoming increasingly competitive, New Zealand universities must work together with the government and private sector on ways universities can recruit sufficient academic staff of international calibre from at home and abroad.

Source: Universities New Zealand Media Release (January 31, 2011)

European Council of Ministers Issues Conclusions on Impact of Aging Workforce and Population on Employment Policies

In the context of increasing employment rates to meet European 2020 targets, the 2012 Year on Active Ageing and the Healthy and Active Ageing Pilot Partnership, the Council of Ministers has issued Council Conclusion on the effects of demographic changes on the workforce and employment policies. The Conclusions note that higher participation of older workers in employment requires a multidimensional and integrated approach. In addition, they highlight several aspects of the aging workforce and offer suggestions for member states to follow up on.

Among other things, it is important to tackle age discrimination regarding employment and occupation, given that ageism is an important exclusion factor for older workers on labor markets. At the same time, investments should be made in life-long learning initiatives, adapted to labor market needs. In this regard, the Council invited member Ssates to fight stereotyping of older people and older workers by developing effective communication schemes and raising awareness about the issue.

The Council also focused on safety issues, nothing the role of job quality to address the physical and mental impact of work, taking into account the need to reconcile work, family and private life, and the anticipation of changes that occur with age. Thus, the aging workforce and rising retirement age highlight the need for adequate occupational health and safety measures for all workers, as well as the importance of promoting healthy lifestyles,

In addition, the Council invited member states and stakeholders are invited to participate actively in the 2012 Year to Promote Active Ageing and solidarity between generations, including ensuring the appropriate preparation for its activities in 2011,

Source: European Public Health Alliance Council Conclusions (January 30, 2011)

United Kingdom: Employers Need To Plan for Effect of Aging Population on Workplace

A new discussion paper issued by Acas suggests that employers in the United Kingdom need to start planning now for the effects an aging population will have on the workplace. According to "The future of workplace relations--An Acas view," as more and more people live longer, workers will experience increased pressure as they juggle work with caring duties for elderly relatives, which in turn wil lead to an increase in requests for flexible working and part time hours to help meet eldercare as well as childcare responsibilities.

Among other things, the Acas paper explores the changes to the workplace over the next ten years and looks at the:

• changing profile of the workforce;
• fragmentation of the employment relationship;
• employees experience at work;
• future challenges for trade unions in the workplace;
• the rise of rules, regulations, and individual litigation;new challenges in managing the workforce;
• new channels for employee voice; and taking conflict seriously.

Source: Advisory, Conciliation and Arbitration Service (Acas) News Release (January 26, 2011)

Survey: CareerBuilder Finds More Workers over 60 Not Postponing Retirement

According to a survey by CareerBuilder, some mature workers are feeling more comfortable about retiring now compared to last year at this time, with 65% of workers age 60 and over saying they are putting off retirement because they can’t afford to retire financially, down from 72% last year.

In addition, the survey of 500 U.S. workers found that 28% of these mature workers plan to retire within the next two years, while 27% percent are planning to retire in three to four years, 18% in the next five to six years, and 16% in seven years or more. About 10% say they don’t think they’ll ever be able to retire.

Source: CareerBuilder Press Release (January 26, 2011)

EBRI Reports More U.S. Households At Risk of Running Short of Retirement Income

Employee Benefit Research Institute (EBRI) has published an analysis showing that, depending largely on age and income, between 4% and 14% of Americans who otherwise would have had adequate income to cover basic expenses in retirement became "at risk" of running short because of the housing and financial crisis of 2008–2009. EBRI's Issue Brief "A Post-Crisis Assessment of Retirement Income Adequacy for Baby Boomers and Gen Xers" was designed to find out (1) what percentage of U.S. households became at risk and (2) of those who are at risk, what additional savings do they need to make each year until retirement age to make up for their losses from the crisis?

The EBRI report also provides additional percentages of compensation that various types of households will need to save each year until retirement age to have a 50%, 70%, or 90% probability of having sufficient retirement income to meet basic retirement expenditures and any uninsured health care costs for their full retirement. For example, the median percentage of additional compensation for Early Boomers wanting a 50% probability of retirement income adequacy are 3.0% of compensation each year until retirement age, to account for the financial and housing market crisis in 2008–2009.

Source: Employee Benefit Research Institute Press Release (January 20, 2011)

Conference: British Psychologists Report on Value of Older Workforce

At a British Psychological Society conference on Occupational Psychology, three papers were presented on research showing the benefits of an aging workforce:

1. Chartered Health Psychologist Dr. Frances Reynolds investigated the impact that working till a later age could have on employees’ health and safety. Looking at the health and safety experiences of post-retirement age workers (age 60-91), Frances found that these older workers were highly engaged, experienced group who perceived themselves as unencumbered by the frailties traditionally associated with ageing. "Most described deriving physical and cognitive well-being from work; perceived few safety concerns; and believed that, by continuing working, they were maintaining their psychological and physical health."
2. Chartered Occupational Psychologist Mr. James Bywater (SHL Limited) presented research on the expectations, aspirations, work style and capabilities of ageing employees. According to James, there "is an assumption that older workers are not as valuable as younger workers, but based upon the evidence of this initial study there is no reason to discount this group as valuable human resources for the future." In fact, James found evidence that "older workers are more conventional and have less desire to lead and to achieve career goals but this is parried by their conscientious, emotional stability and better social skills."
3. Chartered Occupational Psychologist Dr. Sheena Johnson (Manchester Business School) investigated how the changing age demographic of workers may have implications for health and well-being of employees in service organisations. She found that older employees experienced fewer negative customer behaviours and were more diplomatic and better at keeping calm. "Overall being older and more experienced meant they were better at dealing with customers varied needs."

Source: British Psychological Society Press Release (January 14, 2011)

Study: Older Workers and Their Difficulties with Unemployment

Two reports issued by the Urban Institute show that workers age 50 and older were less likely than their younger coworkers to lose their jobs but took longer to find work when they became unemployed, and that, in the decade ending in 2007, age often shielded workers from layoff because older workers generally had more seniority than their younger counterparts.

According to the first report, a Program on Retirement Policy publication--"Can Unemployed Older Workers Find Work?"--by Richard Johnson and Janice Park, workers age 50 to 61 employed in the second half of 2008 stood a 6.1% chance of losing their jobs within 16 months, compared with 9.3% for those age 25 to 34--a 34% advantage. Between mid-2008 and the end of 2009, the likelihood of finding a new job within 12 months was only 18% for laid-off workers 62 and older, half the 36% rate registered by workers 25 to 34. For workers 50 to 61, the reemployment rate was 24%.

In the companion report--"Age Differences in Job Loss, Job Search, and Reemployment," Johnson and Corina Mommaerts showed show that, in the decade ending in 2007, age often shielded workers from layoff because older workers generally had more seniority than their younger counterparts. However, men age 50 to 61 who had the same service record as men age 25 to 34 were 24% more likely to lose their jobs. Older women were just as likely to lose their jobs as younger women with similar job tenure.

"Not only can job loss have devastating consequences in the short run, but it also upends retirement savings, especially for older workers," says Johnson, who directs the Urban Institute’s Program on Retirement Policy. "Their financial security hinges on a solid employment record right up to retirement."

Source: Urban Institute Press Release (January 12, 2011)

Respiratory Ailments Slow Down Older Workers

According to a study prepared by the British Thoracic Society (BTS), 29% of those aged 51 through 60 report that they experience breathlessness, and that most of those state that this has adverse consequences for their work. In fact, the respiratory ailments often led to an extended sickness absence and that workers were more likely to retire due to ill health.

Mike Morgan, chair of the BTS, said: “The research paints a stark picture of the impact of breathlessness on people’s work performance. With the expectation that people will be working for longer, more needs to be done to ensure that the correct strategies are in place to support older workers who might be affected by respiratory problems, and help them to lead their everyday lives.”

Sources: The Telegraph "British workforces 'not geared up' to employ older workers" (December 3, 2010); Personnel Today "One-third of older workers struggle to breathe" (December 2, 2010)

Workplace Flexibility Groups Look To Greater Employer Engagement

The Sloan Foundation, which has funded numerous research studies around workplace flexibility, gathered many of those researchers and allied business and labor leaders, and government and military officials for a two-day effort to build on what Kathleen Christensen, Program Director, Alfred P. Sloan Foundation, termed a "growing consensus that workplace flexibility--in its many forms--can improve lives, support business objectives and strengthen the economy." Among the goals of the "Focus on Workplace Flexibility" gathering, held in Washington, DC, was to strengthen existing partnerships and to accelerate the process of making flexibility a standard of the American workplace. According to speakers, four-fifths of workers want flexibility, but only 29% have it, even though research shows that businesses do not lose profit by endorsing flexible workplaces.

Various research papers were presented at the event, including one focused on older workers ("Phased Retirement and Workplace Flexibility for Older Adults: Opportunities and Challenges" by Richard Johnson of the Urban Institute). In introducing some of these issues, Christensen noted how much is changing around retirement: retirement has become a joint decision for families for the first time, employees are working longer, and spouses are retiring at different times.

Source: Focus on Workplace Flexibility (November 29-30, 2010)

Singapore: Government Employees Will Be Able Secure Post-Retirement Beginning in July 2011

Singapore's Public Service Division has issued guidelines that will allow employees in the Singapore Public Service can look forward to early implementation of re-employment guidelines in July 2011, ahead of the national legislation. Specifically, re-employment will give officers the opportunity to work up to age 65 and, later, up to age 67, if, among other things:

• an officer has, in the three years prior to retirement, put in satisfactory work performance as well as have no disciplinary action taken against them;
• an officer is medically fit to continue working;
• public service organisations may re-employ officers in jobs similar to that before retirement, or on other arrangements such as part-time, job-sharing, or project work; and
• eligible officers must be informed at least six months before retirement to discuss re-employment, with an offer to be made at least three months before retirement.

Source: Prime Minister's Office Public Services Division Press Release (November 30, 2010)

Study: Retirement Good for One's Physical and Mental Fatigue

According to a study published in the British Medical Journal, while retirement does not change the risk of major chronic diseases, it is associated with a substantial reduction in mental and physical fatigue and depressive symptoms, particularly among people with chronic diseases. In "Effect of retirement on major chronic conditions and fatigue: French GAZEL occupational cohort study", the authors, led by Dr. Hugo Westerlund from Stockholm University, followed a large occupational cohort in France and looked at respiratory disease, diabetes, coronary heart disease and stroke, mental fatigue, and physical fatigue, measured annually by self report over a 15-year observation period.

Several explanations of these findings are possible. If work is tiring for many older workers, the decrease in fatigue could simply reflect removal of the source of the problem. Also, without the demands of work, participants may feel less concerned about limited energy, leading to lower ratings of fatigue. Furthermore, retirement may allow people more time to engage in stimulating and restorative activities, such as physical exercise.

The authors note, however, that participants in the study retired at 55 or close to that age, due to generous retirement provisions in France and from their employer, so that their findings may not apply to settings in which people retire later.

Writing an editorial "Is early retirement good for your health?" in the same issue of the BMJ, Alex Burdorf, PhD, Erasmus Medical Center in Rotterdam, the Netherlands, echoed these concerns and stated that "[r]esearch is needed to corroborate these findings in other countries with a substantially higher age of retirement."

Source: British Medical Journal Abstract (November 24, 2010)

Research FInds 55 Plus Workers Remain Unemployed Longer than Younger Workers

New research from Boston College’s Sloan Center on Aging & Work and the Heldrich Center for Workforce Development at Rutgers University shows that older job seekers often face daunting challenges in finding employment compared to younger workers. Specifically, according to "The “New Unemployables” -- Older Job Seekers Struggle to Find Work During the Great Recession", co-authored by Maria Heidkamp, Carl Van Horn and Nicole Corre, among job seekers unemployed during the recent recession, adults aged 55+ are finding it increasingly difficult to land a job and are more likely to remain out of work longer than younger job seekers.

Among other findings:

• 84% of older workers followed who were unemployed in August 2009 were still unemployed in March 2010, and 67% of older job seekers included in the survey reported looking for work longer than a year;
  
• 12% of the older workers surveyed had taken new education or training courses in the past year, compared to 20% of younger job seekers;
  
• 13% of older job seekers had used online social networking sites, compared to 28% of younger job seekers;
  
• 64% of older job seekers rated the job search tools they were using as not helpful, compared to 49% of younger job seekers.

Sources Sloan Center on Aging & Work News (November 16, 2010); New York Times Economix Blog "Older Job-Seekers More Willing to Take a Pay Cut" (November 17, 2010)

EEOC Hears Testimony on Impact of Recession and Age Discrimination on Older Worrkers

The U.S. Equal Employment Opportunity Commission (EEOC) held a meeting at which various experts testified that age discrimination is causing the nation’s older workers to have a difficult time maintaining and finding new employment, a problem exacerbated by the downturn in the economy. The hearing was conducted at a time in which the number and percentage of age discrimination charges filed with the EEOC have grown, rising from 16,548 charges--21.8% of all charges--filed in fiscal year 2006, to 22,778--24.4% of all charges--in fiscal year 2009.

In the leadoff testimony, Dr. William Spriggs, Assistant Secretary for Policy, U.S. Department of Labor, testified that the rate of unemployment for people age 55 and over "rose from a pre-recession low of 3.0 percent (November 2007) to reach 7.3% in August, 2010, making the past 22 months the longest spell of high unemployment workers in this age group have experienced in 60 years." Older workers also spend far more time searching for work and are jobless for far longer periods of time compared to workers under 55.

In addition, the EEOC heard testimony on legal issues from Mary Anne Sedey, Partner, Sedey Harper P.C., Michael Foreman, Clinical Professor, Pennsylvania State University, Dickinson School of Law, and R. Scott Oswald, Principal, The Employment Law Group. This was followed by testimony on employer best practices from Deborah Russell, Director, Workforce Issues, American Association of Retired Persons and Cornelia Gamlem, President, GEMS Group and Society for Human Resource Management. Among other things, Gamlem highlighted strategies to create discrimination-free workplaces that recognize the value of older workers; programs, such as flexible work arrangements, that enable employees to work longer if they choose to do so; and ways to implement reductions-in-force to avoid inadvertent age-based discrimination.

"Hard working men and women should never be harassed at work or forced out of their jobs on account of their age,” said EEOC Chair Jacqueline A. Berrien. “The testimony we heard today also sheds light on some of the unique challenges faced by older job seekers and will be invaluable as the Commission works to strengthen its enforcement of the Age Discrimination in Employment Act."

"The treatment of older workers is a matter of grave concern for the Commission,” said EEOC Commissioner Stuart J. Ishimaru. “We must be vigilant that employers do not use the current economy as an excuse for discrimination against older workers.'

Source: U.S. Equal Employment Opportunity Commission Press Release (November 17, 2010)

Germany: Government Reaffirms Commitment To Raising Retirement Age

According to news reports, Labor Minister Ursula von der Leyen has confirmed that the plan to raise the retirement age gradually beginning in 2012 from 65 to 67 will proceed and presented a report showing improved employment opportunities for older workers. Von der Leyen said that the employment rate for those aged 60 to 65 is currently at 38% and has doubled in the last 10 years; furthermore, without the changes, Germany would be forced to cut pensions or drastically increase employee contributions.

Economists cited in the daily Financial Times Deutschland argued this trend should continue--Martin Dietz from the Institute for Employment Research (IAB) told the paper that an employment rate of 50% was possible for over-60 workers.

The retirement change will begin in 2012, with those born in 1947 having to work one month extra. The transition is to be complete years later when those born in 1967 retire at the age of 67.

Sources: Deutsche Welle "Government sticks to plan for retirement age to increase to 67"; The Local "Labour Ministry defends raising retirement to 67" (November 17, 2010)

European Parliament Calls on Solidarity between Generations including "50-plus Employment Pact Initiative"

The European Parliament has passed a resolution calling for measures to improve job prospects for young and old, and so reduce the costs of funding social security and pensions. The "the demographic challenge and solidarity between generations" resolution addresses rising longevity and a declining birth rate in Europe, stating that access to employment should be at the core of policy-making between generations, as younger and older people face higher levels of unemployment.

Among other things, the resolution proposes that the European Commission and member states take "a fifty-plus employment pact initiative" to increase the share of workforce aged over 50 to 55%, eliminate early retirement incentives, combat aged-based discrimination and to develop incentives and opportunities for workers over the age of 60 to pass on their knowledge and experience. Included would be "setting country-specific targets for access to training and lifelong learning for older workers, broken down by age group and gender, thus increasing the proportion of people of all generations in initial and further training; and facilitating access to training for older workers by the setting up of incentives/bonuses by employers for older workers who decide to continue their education after the age of 50."

The resolution also calls on the Commission to develop a proposal to make 2012 "the European Year of Active ageing and Solidarity between generations", which will highlight the contribution of older people to society.

A background report on on the demographic challenge and solidarity between generations is also available.

Source: European Parliament Press Release (November 11, 2010)

United Kingdom: 50 Plus Workers Want To Retire Earlier, Note Career Stagnation

A survey conducted by the Employers Forum on Age (EFA) and Cranfield School of Management reports that even though mandatory retirement will end in the United Kingdom and the retirement age will rise to 66 in 2020, on average workers want to retire at 61. In addition, the study--"Change at any Age"--finds that there is considerable stagnation in the careers of many over 50s, and many employers are not currently doing enough to prevent this and the loss of skills and attitudinal problems that result.

The study noted the stagnation in different trends. For example, the average time since individuals had made their last transition was, for those under 30 year olds, 12 months, while it was 28 months for for 31-50 year olds, and 37 months for over 50 year olds. In addition, while romotions were the most common form of career transition overall, older workers were less likely to have been promoted outside of their current business unit. Older workers were also more likely to have reduced the number of hours that they work.

Rachel Krys, Campaign Director at the Employers Forum on Age, comments: "As employment rates have risen in the past decade, there are now a lot more people remaining in their jobs for longer before they retire. However, our study tells us that many employers do not have the correct measures in place to motivate older workers and help them develop. This means that apathy may set in amongst the workforce once it reaches a certain age, which has a detrimental effect on both individuals' own working lives and those around them. Workers now need to have more than one career in their lifetime to keep them motivated as they get older, so therefore many employers must change the way they manage people in the future."

Source: Employers Forum on Age Press Release (November 11, 2010)

The Wealthy Never Retire According to Barclay's Report

According to a survey of wealthier individuals issued by Barclay's Wealth, most of those surveyed want to keep on working in some form and never intend stopping, even if they have little financial need to do so. Barclay's The Age Illusion: How the Wealthy are Redefining Their Retirement calls these people "Nevertirees" and says that they "are very actively engaged in what we would traditionally regard as their retirement years; continuing to work, starting businesses and taking on new projects." Some 60% of respondents say they envision always being involved in commercial or professional work of some kind, whatever their age.

However, while the corporate sector will gain from their experience at the board level, businesses may worry about how to get individuals eventually to step down. In addition, continuing to work may complicate succession issues at firms.

Sarah Harper thinks increasing numbers will want to keep on working but not necessarily in the same role. As lead investigator on Oxford's Ageing Workforce Programme, she has recently completed a study on "Extending Late Life Work" and she says, "We do a lot of work around the importance of the age of 50 to 70 - an age when you're incredibly experienced, you've got so much to offer, but maybe want a second career. Maybe you want to do something different, or maybe you want to stay in the same work but in a different role."

Source: TAEN "The Rise of the Nevertirees" (November 11, 2010)

Ireland: Older Workers Faring Better in Recession in Both North and South

According to the Centre for Ageing Research and Development in Ireland (CARDI), older people are better represented in the workforce in Ireland, North and South, than in the past and have been less affected by unemployment during the recession than their younger counterparts. This information was presented at a seminar on "Living Longer, Working Longer" at which CARDI also explored issues such as the impact of an aging population on Ireland’s workforce, North and South; the reasons why some people retire early and others continue working; and the urgent need for research on older people’s experiences in the workforce in light of the fact that the retirement age is set to rise.

On the statistical front, the number of workers aged 55 or older rose by 73% in the Republic of Ireland between 1998 and 2008 (up 120,000) and by 50% in Northern Ireland (up 35,000). In particular, older women have benefited, with the female labour force participation rate at age 55-59 jumping in the Republic of Ireland by a full 20 percentage points, from 30% to 50%, and for women aged 60-64 increasing from 17% to 33%.

“The pension age in both the Republic of Ireland will rise to 66 in 2014 and Northern Ireland in 2016 and later to 68,” said [Paul McGill, Strategic Research Officer with CARDI]. “At the same time, the numbers of older people in Ireland as a whole are steadily increasing: by 2041, it is estimated there will be 1.89 million people aged 65 and over. In light of this, government and employers need to make provisions now to accommodate older workers."

CARDI cited a number of reasons why older people are better represented in Northern Ireland’s current workforce than they were in the past, including:

• employers having greater difficulty offering pension top-ups to encourage early retirement;
• the outlawing of discrimination against older workers is beginning to have an effect;
• older people may have been worried by increases in food and fuel prices during the economic boom and, as a result, decided to hold on to their jobs for longer; and
• Poor private pension provision.

Source: Centre for Ageing Research and Development in Ireland News (November 10, 2010)

Russia: No Plans To Raise Retirement Age

In an interview published in Rossiiskaya Gazeta, Russian President Dmitry Medvedev says that there are no plans to raise the retirement age, even if there are shortfalls in the Russian pension system and one of the lowest retirement ages. According to Medvedev, the much lower mortality age in Russia dictates a different approach to retirement age than in other Western countries.

“In a society where people live up to 90 years, retirement at the age of 70 appears to be normal. In such a society people are confident that with the high level of health care and proper attention to their own health after retirement they have many years to rest, travel around the world and spend time with grandchildren,” the president said.

“It’s not so simple here. And this is why we cannot just copy Western pension systems. Our life standards are different. And the average life expectancy is different too,” he added.

However, Russian presidential aide Arkady Dvorkovich said the country might need to increase the retirement age in several years.

Source: ITAR-TASS "Medvedev says no plans to raise retirement age in Russia in near futurе" (November 11, 2010)

France: Pension Reforms Signed into Law

According to press reports, French President Nicolas Sarkozy has signed into law pension reform changes that will gradually raise by two years the minimum retirement age and the fully pensionable retirement age, to 62 and 67, respectively. The signing followed immediately on the approval of those provisions by the Constitutional Council.

The Council's decision and the law are available in the Journal Officiel of November 10, 2010.

As noted in the Washington Post, this change is viewed by some outside France as only a moderate change:

Simon Tilford, chief economist at the Center for European Reform in London, says Sarkozy "had no choice" other than to get the reform through because otherwise France's - and his - credibility would have suffered.

"For anyone outside of France, this looks like a pretty modest move forward," he said. "Other EU countries are moving much much more rapidly" on pension reform.

France has the highest life expectancy in Europe but still one of the lowest retirement ages, prompting Tilford to predict that retirement issues will come up again before markets believe that France has its finances in order.

"A retirement age of 62 is still far far too low," he said.

Sources: Reuters "France's disputed pension reform becomes law" (November 10, 2010); Washington Post "Sarkozy signs the law: French retire at 62, not 60" (November 11, 2010)

United Kingdom: Study Shows Offshore Workers are Getting Younger

In a sign that concerns about an aging workforce in the energy sector may be receding, Oil & Gas UK has released a report showing that, for 2009, the average age of offshore workers is 40.4 years old--the lowest since the industry body began compiling this data in 2006. According to "Oil & Gas UK Workforce Demographic Report 2009," there is also evidence of much younger workers taking up positions in key areas, with, for example, increases in the numbers of 18 to 23 year olds and 24 to 29 year olds working in areas such as deck crew, drilling, electrical, management, production, rigging and scaffolding.

Oil & Gas UK’s health, safety and employment issues director, Robert Paterson, said: “Oil & Gas UK’s latest offshore workforce demographics report highlights some very positive findings indeed.

“It’s encouraging to see evidence of not only the youngest recorded average age of offshore workers but more and more young people under the age of 30 taking up important skilled jobs in key areas of the offshore industry.

“I think we can now put the myth to bed that the North Sea and wider UKCS has an ageing workforce."

Source: Oil & Gas UK Press Release (November 4, 2010)

United Kingdom: Survey Highlights Reasons for Extending Working Life and Non-age-based Reasons for Ceasing to Work

The Chartered Institute of Personnel and Development (CIPD) has release the results of a survey showing that 41% of employees in the United Kingdom plan to work beyond the state retirement age, compared to 29% who don’t. In addition, the survey of 2,000 workers found that 44% opposed the law giving employers the right to retire employees once they reach their 65th birthday, while just 25% supported it.

Among those employees planning to work beyond the state retirement age, 72% cited financial reasons as a motivation, followed by people’s needs and aspirations to continue using their skills and experience (47%), benefit from social interaction in the workplace (41%), and for self-esteem (34%). In addition, the survey asked the respondents what should guide the extension of working life and 64% cited health, 62% personal performance, and 31% the availability of a suitable job; however, 13% of employees don't believe employers should be able to require people to retire on the basis of any of these criteria.

According to Dianah Worman, diversity adviser, CIPD:

The CIPD, however, warns that employers will need to make sure their people management policies and practices are in mint condition to manage an increasingly age diverse workforce. The prevailing demographic changes, due to people living longer and healthier lives, and an average birth rate that is below replacement level, demand action. Effective and fair performance management across the whole workforce will be critical, as will inclusive and creative approaches to flexible working, to support businesses in meeting their goals. If employers drag their heels in getting to grips with an ageing population and the associated 21st century people management challenges, they will fall behind more progressive competitors in sustaining business performance.

Source: Chartered Institute of Personnel and Development Press Release (October 29, 2010)

Research: Wholesale Sector Behind Other Industries 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 note that the wholesale sector reports greater problems associated with shifts in the age demographics of the workforce as compared to other sectors. In "Talent Pressures and the Aging Workforce: Wholesale Sector," the Center reports that, from 2000-2007, the percentage of wholesale workers aged 55-64 increased by 35% compared to 28% in all industries, and employment of wholesale workers aged 65+ increased by 10%, compared to 7% in all industries.

Among other things, the report finds that that many employers in the wholesale trade sector have only a limited knowledge of their workforce, and that a large-scale exodus of workers could leave some employers in this sector with stiff challenges in locating replacement employees. To this end, the report suggests, among other things, that the the aging of the workforce offers employers in the sectoran opportunity to re-vitalize their flexible work options, because older workers express a preference for access to flexible work options.

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

Survey: Adoption of Social Media at Work by Generations

Gen-Y doesn't have the lock on using social networks at work. According to a survey commissioned by Citrix Online, Gen X workers make up the majority of those who use social networking for business, followed closely by Boomers aged 55 and older, while Gen Y's use of collaborative technology lagged the others. Among the findings by Forrester Consulting, which conducted the survey of 797 "information workers" (anyone who uses a computer for work) evenly split between the United States, United Kingdom, France, Germany and Australia:

• Gen Y is least likely to share information via text message (26%, compared to 47% of those aged 55 and older), and least likely to use video conferencing, video chat and web conferencing tools
• Gen Y is least likely to think meetings are efficient, with only 29% of Gen Y workers thinking meetings used to decide on a course of action are very efficient, compared to 45% of Older Boomers
• 79% of those aged 55 and over think it's important to have in-person meetings, compared to 65% of Gen Y

Source: Citrix Online Press Release (October 19, 2010)

United Kingdom: Britons Want To Avoid Boredom and Keep Working

A survey conducted by Friends Provident has found that British workers hope to continue to work past retirement age to keep themselves active and in touch with the outside world. Specifically, 51% of the respondents stated they wish to continue working after they reach the retirement age as a way of staying active, 47% that they will get bored when they stop working, and 43% that they enjoy the social contact that comes from being in a working environment.

Issued as Visions of Britain 2020 series--Ageing and Retirement, the report also found that "Britons have already started to see an end to 'cliff edge retirement' and a steady turn towards phased retirement, this trend will intensify dramatically in the next ten years. By a ratio of two to one the Delphi Panel of experts felt that older workers will seek jobs which carry less responsibility as they wind down to full retirement. Because of this increasing trend, employers in the next decade will have to act swiftly in adapting their businesses and the roles within them for the new breed of older workers."

Source: Friends Provident News Release (October 18, 2010)

Survey: Employers Confront Loss of Skilled Workers and Critical Knowledge with Retirement of Older Workers

Career Partners International(CPI) has released the results of a survey of senior executives and HR executives and managers from 26 countries, finding that 64% thought retiring workers would have a significant impact on their organization, while at least 90% expect retirements to significantly increase the loss of knowledge and expertise. However, the CPI Global Mature Workforce Survey found that only 34% anticipated making changes to employment practices or benefits or make their organization more attractive for current employees or recruits.

CPI says that the sectors most concerned about their loss of competitive edge due to retirements included business services, government, manufacturing and utilities. In addition, it noted that large and small firms had different expectations about the impact of retiring workers, with 73% of large organizations expecting at least a significant impact, while only 59% of small organizations had similar expectations.

In addition to the survey results, CPI has made available a webinar, which has experts presenting their thoughts on the analysis of results, including additional information not previously presented.

Source: Career Partners International News Release (October 7, 2010)

Book: Global Aging Spurring Globalization, with Younger Countries Poised For Growth

The New York Times Magazine has published an extensive excerpt from a new book by Ted Fishman (Shock of Gray: The Aging of the World's Population and How it Pits Young Against Old, Child Against Parent, Worker Against Boss, Company Against Rival, and Nation Against Nation) in which he, looking at aging demographics globally, argues that he pace of global aging is quickened by the speed and scope of globalization, that these intertwined dynamics bear on the international competition for wealth and power, and that the high costs of keeping our aging population healthy and out of poverty has caused the United States and other rich democracies to lose their economic and political footing. Thus, "[c]ountries on the rise amass wealth and geopolitical clout by refusing to bear those costs. Older countries lose work to younger countries."

Among the many examples Fishman offers of how countries are differing in their approaches to aging populations he shows what China is doing to lure the world’s production and capital while its work force is young.

In large part, it does this by denying meaningful pensions and health care to its people today. Not only do the vast majority of elderly Chinese have little more than their meager savings, but today’s workers have pensions so measly as to be irrelevant. To keep the cost of manufacturing in China low for the rest of the world, the young Chinese work force is, for now, rarely provided more than token pensions, health care or disability insurance. In aging, developed countries, older workers with long tenure are usually at their peak in terms of pay and the cost of their benefits. Here in the United States, for example, health care costs for workers who are between 50 and 65 are, on average, almost two times what they are for their peers in their 30s and 40s. When the median age of workers climbs in the United States, so does the cost of insurance their employers must buy for them.

However, Fishman also points out that the United States is not in the same boat as many rich countries where aging populations have taken hold. where balization can take hold with remarkable swiftness. Thus, Japan was one of the youngest countries in the world until around 1950, and now may be the world’s oldest. In contrast, the United States, while subject to the same two big trends of longer lives and smaller families, is aging much more slowly due to the arrival of young immigrants, including millions from Latin America.

Fishman also addresses various aspects of the aging workforce. For the United States, he notes one apparent contradiction: that at the same time that unemployment among older workers is at a peak, the percentage of older people with jobs is also near a high, because more people must work to make ends meet. He also points out that there is a transformation starting of older workers into a giant contingent workforce. He also suggests that looking at what is happening in "older" countries can help inform where the United States is heading:

In Japan, retirees from the biggest companies are well provided for, but for many of the rest — workers at smaller companies, the self-employed — the fear of outliving their money is real. One in five elderly Japanese lives in poverty. So the Japanese stay on the job when they can. Since 2006, the number of Japanese still working after the customary retirement age of 60 has risen by more than 11 million. Most are officially retired but are back at their companies, under contract. They typically earn about half their former wages.

Source: New York Times Magazine "As Populations Age, a Chance for Younger Nations" (October 14, 2010)

Canada: Chamber of Commerce Issues Call for Action on Aging Workforce

The Canadian Chamber of Commerce has released a call for concerted action by governments, the wider business community and other stakeholders to address the problem of Canada’s aging workforce. According to "Canada’s Demographic Crunch: Can Underrepresented Workers Save Us?", a rapidly aging population and workforce will pose a challenge for Canada’s business competitiveness and economic well-being.

The report makes practical recommendations on how best to meet and overcome that challenge. Specifically, the Chamber believes that a multipronged approach, with the aim of replenishing the skilled workforce and boosting labour productivity is needed. Among other things, the Chamber recommends that Canada draw far more extensively on underutilized sources of labor within its borders-young people, older workers, the Aboriginal population and people with disabilities-as well as attract the best and brightest immigrants. To boost labour productivity, Canadian businesses must invest in capital equipment and new technologies and integrate efficiency-enhancing innovations into their operations.

“Many companies and sectors are already facing shortages of the talented people they need to remain competitive and grow,” says [Perrin Beatty, President and CEO of the Canadian Chamber of Commerce]. “The grave concern for Canada’s business community and the well-being of Canadians is that workforce shortages are expected to increase within the present decade as the baby boomer generation retires in droves. The time to act is now.”

Source: The Canadian Chamber of Commerce News Releases (October 14, 2010)

Singapore: Study Finds Older Workers Want Flexibility, Employers Reluctant to Hire

Singapore's Employer Allliance has released a study showing that older workers want flexible working hours to allow them to spend more time with their families and engage in leisure activities. However, the same study shows that only 5% to 15% of new positions here are made available to older people as employers perceive them to have lower energy levels, lack relevant skills and the ability to adapt quickly.

The employee desires were reported as a result of focus groups. Workers aged 50-54 wanted a job that requires minimal travelling and provides flexible working hours. Those aged 55-59 said they wanted greater flexibility when taking long periods of leave to enjoy leisure activities such as travelling and also wanted a lighter workload.

The employer attitudes were reported as a result of a survey of 22 employers. Despite their reluctance to hire, however, the companies do value older workers who are already in their employment, because of their loyalty and wealth of knowledge.

Source: AsiaOne News "Older workers prefer flexi-work" (October 13, 2010)

Stresses on Knees of Older Workers May Lead Them to Claim Workers' Compensation

Dr. David Cooper, director of orthopedic surgery at The Knee Center in Wilkes-Barre, Pennsylvania, suggests that knees may be the latest challenge facing aging workers and their employers, as people in their 50s, 60s and older are stay in the workforce and find their knees bearing the brunt. However, Dr. Cooper says that "there is no scientific evidence suggesting repetitive standing causes [arthritis] to accelerate" and that employers need to be wary of workers with preexisting osteoarthritis who blame work-related activities for causing them more pain.

According to Dr. Cooper, arthritis is a disease, not a function of aging; it is genetic and therefore cannot be caused or aggravated by work tasks. He does make some suggestions to mitigate discomfort:

• Minimize the use of stairs and ladders;
• Use elevators whenever possible;
• Use foam mats to provide a cushion on hard floors;
• Wear comfortable shoes to absorb the pressure; and
• Walk around occasionally instead of constantly standing in one spot.

Source: Risk & Insurance "Orthopedic surgeon says work activities do not aggravate arthritis" (October 11, 2010)

Canada: Older Workers Landing Jobs

According to an article by Tavia Grant in The Globe and Mail, older workers in Canada have been the biggest gainers in the workforce in 2010. In September alone, there were 37,000 more jobs for workers 55 and older even though overall jobs declined. While she cites a preference among employers for experience and the fact that more older people are actively looking for work than in decades past as factors, she also notes that older workers have become more willing to take a pay cut, making their cost more comparable to someone with less experience:

“Experienced workers are a valuable resource but they also are settling for lower wages,” said Jim Geraghty, president of Happen, a Canadian network for unemployed mid-level to senior managers and executives. “People today need to be more flexible and disregard the old salary expectations.”

Statistics Canada reported a 7.7% increase in job growth over the past year among men aged 55 and older and 5.9% among women over 55, while job creation was flat among middle-aged women and youth and had grown 2.3% for men aged 25 to 54.

Source: Globe and Mail "Experience trumps age in Canadian job market" (October 8, 2010)

United Kingdom: Rise in "Silver" Apprenticeships

Belying the stereotype that people in later life are reluctant to learn new skills, statistics obtained from the Skills Funding Agency by Age UK and The Age and Employment Network (TAEN) show that the number of people aged 50-plus enrolled in apprenticeship programs has grown to a record number of over 5,000 "silver" apprentices, including over 400 people in their 60s and 13 in their 70s, with the oldest apprentice in the United Kingdom being aged 76.

Research by the former Learning and Skills Council shows most 25-plus workers use apprenticeships to develop their skills under their current employers (50%) or move on to a new job (33%). While no similar figures are available for 50-plus workers, the steep rise in the number of apprentices in this age group during the recession suggests that some 50-plus workers may have opted for apprenticeships to elude unemployment.

This growth was first noted among the 25-plus apprentices which rocketed in 2007-2008 from just 300 to 27,200 after the Government started funding apprenticeships for this age group. Prior to then, only a handful of apprentices over the age of 50 enrolled in early pilot schemes.

Sources: AgeUK News Release (October 6, 2010); Daily Telegraph "Recession sees rise of the 'silver' apprentice" (October 7, 2010)

Study Reports that "Working in Retirement" Will Become the Norm

According to a study by the Families and Work Institute (FWI) and the Sloan Center on Aging & Work, fully 75% of workers aged 50 and older expect to have retirement jobs in the future. This will be a significant change from today, where already one in five workers aged 50 and older has fully retired from his or her former career job but currently is working for pay in a new role--defined as a "retirement job."

"Working In Retirement: A 21st Century Phenomenon", co-authored by Melissa Brown, Kerstin Aumann, Marcie Pitt-Catsouphes, Ellen Galinsky and James T. Bond, used data from FWI's 2008 National Study of the Changing Workforce and reports that, among other things, money is not the only motivation for continuing to work; 31% report that they are working to stay active, and 18% say they want to contribute and be productive. In fact, less than one in five report working in retirement due to insufficient income, though they do earn less money than those who have never retired-—the typical median yearly income among those working in retirement is $21,000 less than those who have never retired.

Writing about their work in The Huffington Post, Galinsky, Pitt-Catsouphes, and Brown point out five important differences between assumption and reality about older workers in retirement jobs:

1. Assumption: Careers are Linear; Finding: 20% of U.S. workers over 50 years old have fully retired from a job and are now working.
2. Assumption: People Work in Retirement Because They Have To; Finding: Retired workers are in the labor force both because they have to and want to.
3. Assumption: Older Workers Don't Work Very Hard; Finding: Working retirees are working hard and in some ways have better jobs than their pre-retirement jobs.
4. Assumption: There is Widespread Tension Between Older Workers and Younger Bosses; Finding: Approximately one in ten workers has a supervisor who isn't supportive when work problems arise--regardless of the difference in age between the worker and his or her supervisor.
5. Assumption 5: Working in Retirement Will Disappear As a Phenomenon When The Recession Eases; Finding: Working in retirement has become the "new normal."

Source: Families and Work Institute News Release (October 6, 2010)

Philippines: Older Workers in Nation without Prohibitions Against Age Discrimination

An article by Allyn Baldemor for UPI.com provides some insight into how the tough road some older workers have to hoe in the Philippines since the Labor Code does not include age among the factors that employers cannot discriminate against. A bill has been introduced in the Senate to include age as a prohibited basis, but similar legislation three years ago got nowhere. Among the things that Baldemor sites:

• Many want ads state a preferred age range for job applicants, usually 20 to 28 years old for entry-level positions and up to 44 years old for managerial levels.
• It is common for employers to assume younger individuals would be fit for the typically long hours and night shifts in call centers.
• There is a cottage industry in forged birth certificates so older workers can appear younger.

Source: UPI.com "Faded Glory: Age discrimination in the Philippines" (October 3, 2010)

Survey: 4 in 10 U.S. Workers Planning To Delay Retirement

Towers Watson has released the results of a survey showing that 40% of U.S. workers are planning to retire later than they did two years ago, and a vast majority of workers are prepared to spend less in retirement and are willing to pay more now for greater certainty in their future retirement and health benefits. In particular, older workers and those in poor health comprise the largest percentage of employees planning to delay retirement: 45% of employees in poor health plan to postpone their retirement. In being asked their reasons, 68% of older workers said to keep their health care coverage and 61% blamed the decline in the value of their 401(k) plan.

The survey--"Attitudes Part II: Employee Attitudes Toward Risk"--was conducted with 9,100 employees and found, among other things:

• more than three-quarters of older workers plan to spend less in retirement than they are spending today;
  
• employees are more willing to pay a higher amount for certainty in their retirement and health care benefits compared to 15 months ago;
  
• employees across all age groups and plan types are willing to trade higher pay increases for more generous retirement benefits and more predictable health care benefit costs.

According to Towers Watson, the survey found that 63% of respondents are actively paying off their debts to improve their financial situation, 54% are cutting back on their daily spending, and 34% are increasing their monthly savings.

“The economic crisis has had a deep effect on employees’ attitudes toward retirement and especially on risk,” said David Speier, a senior retirement consultant at Towers Watson. “Despite the signs that some employees are saving more, spending less and reducing debt as the economy stabilizes, workers continue to have a fear that they won’t be able to afford retirement — and that will have significant implications on companies’ ability to plan their future workforce needs.”

Source: Towers Watson News Release (October 5, 2010)