Ohio: Pushing To Eliminate Social Security Offset for Unemployment Benefits

According to a report in the Canton Repository, "[a]dvocates for seniors and the jobless are pushing for changes that would allow Social Security recipients who work to draw full unemployment benefits if they lose their job." Policy Matters Ohio is a nonprofit research organization that advocates changing the state’s system, and Ohio’s Unemployment Compensation Advisory Council, which makes recommendations to lawmakers, is expected to discuss the reduction at a meeting Feb. 8.

Source: "Social Security recipients see jobless benefits reduced" The Canton (OH) Repository (Janaury 31, 2006)

Additional Resources:

A Janaury 22, 2006 article in the Columbus Dispatch says that Rep. William J. Seitz, Cincinnati, a Republican state lawmaker, is pushing to end Ohio's "offset" of Social Security. He hopes "to help our senior citizens who are rudely awakened to find their Social Security benefits are offset against their unemployment comp benefits when they have to get a second job merely because Social Security isn't enough."

See prior AgingWorkforceNews.com article on the AARP campaigns to repeal Social Security offset provisions in state unemployment laws.

Commentary: Youthfulness and the Older Worker

Judith Timson writes in the Globe and Mail that for older workers wanting to be professionally wanted in a youth-obsessed culture have apparently found a solution--"We're not young any more, we're 'youthful.'"

Whenever I read the word "youthful" applied to anyone over 40, as it is frequently these days, I ask myself: Is this relentless need to redefine the middle-aged as young -- or, more importantly, not old -- a desperate bid by the boomers to hold on to the spotlight at all costs?

Or have we successfully reframed the idea of aging and, with all sorts of new cosmetic, spiritual and physical avenues, simply set the bar higher for how we are all supposed to look and feel?

Referring to the "countless articles and websites offering advice to midlife job seekers worried about appearing old," she says many are absurdly obvious, but she also senses that women in today's work force still have to worry more about aging than men do. However, she suggests that looking good (not necessarily youthful) and looking fit are especially important for older workers looking to get ahead. On the other side, there are certain behaviours that signal "older worker:" "Going to a business event, for example, and reminiscing about the past the whole time -- not a good thing. A few old combat stories are fine but then go ask younger colleagues what stirs their interests in your field these days. You have to stay curious to stay youthful."

Source: "Youthful is as youthful does" The Globe and Mail (February 1, 2006)

Asia: University of Chicago Executive MBA Program Attracts Older Ages

Writing in The Korea Times, Chung Ah-young reports on an executive MBA (EMBA) program that will help seniors successfully continue developing their business skills over their long careers in an aging society. According to the article, "Beth Bader, managing director of the EMBA Asia program of Graduate School of Business of the University of Chicago in the United States, said getting an adult education and continued investment in oneself, through the EMBA course, are crucial in almost any field, for successful long-term careers."

``People begin to realize they don’t want to spend their whole or half their life just declining as they are getting older. In a sense, they can reinvent themselves, if they want to do that. Or they can make a very significant jump in their abilities and flexibilities in the very specialized business program,’’ Bader said.

She stressed that in societies with aging populations, people hope to work longer.

``That’s why I predict more demands for the EMBA course for older ages and more mature-aged students here in Korea and other aging countries. Particularly, business in Korea has been much more mature. People are going to need to work a lot longer than they have done in the past. I think it has happened already in the United States,’’ she said.

Source: "Executive MBA Program Targets Seniors" The Korea Times (February 1, 2006)

Microsoft Launches 21st-Century Skills Initiative for European Workers, Including Older Workers

Microsoft Corp. has announced a 21st Century Skills for Employability initiative in Europe. This is part of a European Alliance on Skills for Employability, which is providing access to skills training, content provision, and certification for underserved communities, including older workers. The alliance, with other companies such as Cisco Systems, is being created to help better coordinate industry and community efforts to improve the employability prospects of young unemployed people, people with disabilities and older workers. The alliance will work to provide technology access and ICT training to 20 million people in the next five years. According to Günter Verheugen, vice president of the European Commission in charge of Enterprise and Industry, “[r]aising employment is the most effective way to generate growth and promote social inclusion. The challenges posed by an aging population make the modernization of social protection systems and the promotion of a life-cycle approach to work all the more important.”

Source: Press Release Microsoft (January 31, 2006)

Ireland: Needs To Mobilize Older People into Workforce

In its latest report in a series of 21 OECD country reports that are intended to fill the knowledge gap of what are the main barriers to employment for older workers, an assessment of the adequacy and effectiveness of existing measures to overcome these barriers, and a set of policy recommendations for further action by the public authorities and social partners, the Organisation for Economic Co-operation and Development has released its Ageing and Employment Policies: Ireland. According to the report, Ireland will need to mobilise more fully the potential labour resources of older people in order to sustain its record of strong economic growth and healthy public finances. Therefore, it should: strengthen work incentives through pension and welfare reform; promote an age-friendly environment in firms; expand training opportunities; and provide more assistance to older job seekers. The full report can be browsed here or purchased here.

Source: News Release OECD (January 31, 2006)

New York Employers Not Rushing To Hire Older Workers

Joy Davia, writing for the Rochester Democrat & Chronicle, reports that while New York area businesses will be losing workers full of experience and institutional knowledge, but won't have nearly enough Generation X-ers and Y-ers to replace them, "[m]ost businesses are aware of the problem but are not preparing for such a scenario, according to a recent upstate New York study by the AARP. They're not actively trying to attract and keep older workers or getting experienced workers to mentor younger cohorts, among other moves."

It might be hard for businesses to take a potential worker shortage seriously, especially if they're not already having trouble finding skilled employees. In fact, massive downsizings by local companies have left an abundance of people searching for jobs. "Change happens so rapidly," said Matthew Hurlbutt, executive director of RochesterWorks. "It might be hard for a business to look at an issue in 2010 and say they should start preparing for this now."

Davia writes that two of the most important things for employers to consider are making jobs attractive for older workers and capturing their knowledge. For example, the YMCA of Greater Rochester offers flexible hours — maybe part time or job-sharing — and benefits, including a new initiative that offers part timers health insurance. And, on the other side, Strong Memorial Hospital has a new mentoring program designed to get more nurses into one of its toughest fields; mentoring, according to Davia is hailed by experts as a great way to prepare for the upcoming swell of boomer retirements.

Source: "Older workers hold key to easing staffing woes" Rochester Democrat & Chronicle (January 29, 2006)

Immigration Not Altering Older Worker Demographics in U.S.

In providing a detailed picture of both the numbers and the socio-economic status of immigrants from U.S. Census Bureau data that shows that the nation's foreign-born or immigrant population (legal and illegal) reached a new record of more than 35 million in March of 2005, Steven A. Camarota, Director of Research at the Center for Immigration Studies, reports that recent immigration has had no significant impact on the nation's age structure--"[w]ithout the 7.9 million post-2000 immigrants, the average age in America would be virtually unchanged at 36 years."

It could be argued that the benefit to the age structure might take more than just five years of high immigration. In a recent reported we examined the impact of immigration on the aging of American society as well as on the Social Security system. Consistent with other research, we found that immigration has only a very small impact on the problem of an aging society now and in the future. While immigrants do tend to arrive relatively young, and have more children than natives, immigrants age just like everyone else, and the differences with natives are not large enough to fundamentally alter the nation's age structure. After looking at the impact of different levels of immigration over the next century, a Census Bureau report stated in 2000 that immigration is a "highly inefficient" means for increasing the percentage of the population that is of working age in the long-run.

Source: "Immigrants At Mid-Decade: A Snapshot Of America's Foreign-Born Population In 2005" Center for Immigration Studies (December 2005)

Employers Not Facing Up to Aging Workforce: Survey Results

The Aging of the U.S. Workforce: Employer Challenges and Responses, a survey conducted by Ernst & Young LLP, ExecuNet Inc., and the Human Capital Institute, reveals that, although corporate America foresees a significant workforce shortage as boomers retire, it is not dealing with the issue at present and may be underestimating the strategic challenges ahead. According to the survey of senior human resources executives, a little more than half of them agreed that the aging workforce is an issue that must be addressed. The survey illustrated that while employers are putting off tackling the issue of an aging workforce, an overwhelming 90% said they are committed to putting formal retention programs in place in the future. Of the 30% who have identified where business wisdom resides, only 67% have formal processes in place to transmit that business wisdom to the next generation.

Source: News Release PR Newswire (January 26, 2006)

Aging Workforce Helps Drive State Government Outsourcing

State and local government outsourcing expenditures on information technology (IT) are expected to grow from $10 billion in fiscal year 2005 to nearly $18 billion by fiscal year 2010 (FY10), according to a report released by INPUT. Despite many government officials' claims, outdated system infrastructures and an aging workforce will remain major factors forcing the market's pronounced 75 percent growth over the next five years.

“As the economy continues a strong recovery, we expect outsourcing opportunities to increase on the state and local level,” added [James] Krouse [, manager, state & local market analysis at INPUT]. “However, system integrators should remain vigilant in researching government opportunities on a case-by-case basis. The loss of seasoned government workers will affect nearly all state & local agencies. While this will be a significant stimulus for outsourcing contract decisions, ongoing maintenance of outdated legacy systems will provide more definite targets for outsourcing contract opportunities.”

Source: Press Release INPUT (January 23, 2006)

Europe: Aging Workforce Issues Part of Annual EU Labor Progress Report

The European Commission has published "Time to Move Up A Gear" The European Commission's 2006 Annual Progress Report on Growth and Jobs to reinforce momentum and force the pace of delivery. The report, and its separate national evaluations, provides an analysis of the 25 new National Reform Programmes submitted by Member States, identifies the strengths in different programmes with a view to promoting the exchange of good ideas, and highlights areas where there are shortcomings and proposes concrete action at EU and national level to deal with them.

In the third of the four priority action areas--employment policies to get people into work, the EU proposes that, to help increase employment rates and to finance pensions and health care for an ageing population, Member States should adopt a lifecycle approach to employment, with people of all ages offered the support they need. In addition, it says "active ageing" should be implemented, with more training for those over 45, financial incentives for prolonging working lives and use of part-time work.

Source: News Release European Commission (January 25, 2006)

Global: Employers and Nations Putting Retired Back to Work

In an article for Newsweek international, Stefan Theil writes that "many of the rich world's notions about old age are dying. While the streamlining effects of international competition are focusing attention on the need to create and keep good jobs, those fears will eventually give way to worries about the growing shortage of young workers. One unavoidable solution: putting older people back to work, whether they like it or not." Writing on the eve of the 36th World Economic Forum, Theil notes that "the global labor market won't wait for politicians or protesters to come around" and provides a number of examples of corporate responses:

DaimlerChrysler, whose share of over-45 workers will have risen from 41 percent in 2002 to 68 percent in 2011, has set up an Aging Workers Task Force, made up of human-resources managers and health counselors whose main job is to make sure that employees stay productive longer. Personnel services like Swiss-based Adecco have introduced "demographic fitness tests" for their clients to help them judge whether they have the tools in place to attract and productively employ qualified older workers. "Age-ism in the workplace is a danger to corporate productivity," warns Adecco, which recommends replacing sudden retirement with a flexible system allowing workers to work part time into their late 60s or beyond.

The Ford Motor Co. expects that the number of workers older than 50 will double in its European plants by 2008, and has set up an "early-warning system" to deal with staff-aging issues. "With the coming shortage of young, skilled staff, we will have to live with our aging employees," says Erich Knulle, health services director and demographics point man at Ford's European headquarters in Cologne, Germany.

Among the national responses discussed, Thiel draws attention to Finland where, when recession hit in the early 1990s, only 20% of Finns between the ages of 60 and 64 were working. Since then Finland has introduced "bonus pensions" for people working until 68, giving them a financial incentive to continue working—and paying taxes.

Source: "The New Old Age" Newsweek: International Edition (January 30, 2006)

South Korea: New Labor Statistics Show Aging of Workforce

According to an article by Kim Sung-jin in The Korea Times, Korea's The National Statistical Office (NSO) said on January 23 that the number of 40-49 year old workers outstripped the working population aged between 30 and 39 years olds for the first time ever.

"The age of the newly employed in Korea’s manufacturing industry averaged 37.6 years in 2004 and would grow to 50 years by 2030 due to the rapidly aging trend and low birthrate of the Korean society," said LG Economic Research Institute (LGERI) vice president and economy research division chief Oh Moon-suk.

"Such trends call for urgent research into ways to raise the productivity of elderly citizens to tackle the declining potential economic growth rate problem in the short-term, and reinvigorate the birthrate to cope with the problem in the long-term," Oh said.

LGERI has suggested that adoption of a wage peak system and extending the retirement age could help the elderly from remaining economically inactive.

Source: "40-Somethings Emerge as Key Workforce" The Korea Times (January 23, 2006)

Commentary: Europe Can Age Gracefully If Reforms Implemented Now

Writing in Business Week, Natascha Gewaltig says that Europe's graying population will put economic pressure on the euro zone soon, but that what is needed is the political will to implement reforms now. "The share of the working-age population (15 to 64) will fall from around 66.9% in 2004 to just 56% in 2050. At the same time, the share of the population older than 65 will increase to 30% from 17%." One key issue will be female labor participation rates increase, which would at least partially offset the effect of a decline in labor supply; however, that will not be enough according to Gewaltig, so that immigration will also have to play an increasingly important role. In addition,

relatively favorable demographic developments over the next 4 to 5 years mean the period until 2011 is a window of opportunity for governments to prepare their pension systems and labor markets for the upcoming challenges. Radical changes and reforms of the PAYG pension schemes in key countries will be necessary. Despite the life-expectancy increase, the entry level for pension schemes has remained widely unchanged -- but this will have to be increased for the plans to remain sustainable.

Nevertheless, the time spent in retirement is likely to increase in the long run, all else being equal, and the change in dependency ratios will make the current PAYG system unsustainable. Pension levels will have to be lowered, and private-pension provisions will need to become more important.

Source: "How Europe Can Age Gracefully" Business Week (January 23, 2006)

Global Pension Systems Need To Adapt to Aging Populations

Raymond Torres, a labor analyst with the international Organization for Economic Cooperation and Development (OECD), spoke January 19 at the Capitol Hill Club in Washington and told the audience that countries should adjust their pension and employment systems to adapt to aging populations and older workers. According to an article by Kathryn McConnell, Washington File Staff Writer for the Department of State, Torres said that if significant changes are not made in coming years, economic growth in countries could slow profoundly, as longer-living pensioners tap into retirement benefits and the proportion of younger workers who pay into countries' supportive tax bases grows smaller. Among other things, improved incentives for retaining workers longer could include raising the pension age, limiting tax advantages for people in private pension schemes for taking early retirement and ensuring that formal retirement plans and other welfare benefits are not used as pathways to early retirement.

Source: Washington File U.S. Department of State's Bureau of International Information Programs (January 19, 2006)

Massachusetts: Boomers Poised To Redefine Retirement

Massachusetts Institute for a New Commonwealth, known as MassInc, has issued a report "A Generation in Transition: A Survey of Bay State Baby Boomers" in partnership with Princeton Survey Research Associates Intl. finding that, above all, boomers appear poised to redefine retirement. From a survey of over 1,000 boomers, MassInc reports that boomers expect to reverse the trend toward earlier withdrawal from the labor force by delaying their retirement and continuing to work at least parttime even after they retire. Boomers’ views about their retirement years are shaped by their finances today, which are not as strong as is often believed--excluding the equity in their homes, 30% have saved less than $50,000 for retirement, including 13% who have no retirement savings at all. Among those boomers who are planning to work after they retire, at least 39% expect to work out of financial necessity, not by choice.

In addition to the report, a roundtable discussion of it is available from WGBH.

Source: Press Release MassInc (November 2005)

Aging Workforce Issues Prominent in Creating New Global Workforce Forum

In response to the growing need for an international forum for discussion of workforce strategies, the Boston College Center for Work & Family has announced the launch of a Global Workforce Roundtable, a network comprised of human resources professionals from leading multinational organizations. Aiming towards a September inaugural summit in London, the Roundtable is designed to tackle "global concerns such as an aging workforce coupled with dwindling fertility rates." Participation is by invitation only, and participants "will share information and strategies regarding issues ranging from flex time and telecommuting to attraction and retention of talented personnel and aging workforce across the U.S., Europe and Asia Pacific regions."

Source: Press Release Boston College Center for Work & Family (January 17, 2006)

United Kingdom: Older Workers Have Smaller Social Circle, Inhibiting Finding Jobs

A report by Napier's Employment Research Institute (ERI) says that by having a large circle of family, friends, and acquaintances in employment a person is more likely to find or be in work than someone with very few contacts. However, unemployed people over 50 years old had smaller social circles than those in work and that many of their acquaintances were also unemployed which reduced their own chances of finding work.

According to the report--The Social Networks of Older Workers, people over 50 generally had fewer qualifications and skills than the under 50s and were more likely to work in part-time, non-skilled jobs. The over 50s also considered age to be a major barrier to employment. Kaberi Gayen, Research Associate, ERI, Napier University, said: "This research confirms the commonly-held view that older people find it harder to obtain work or change jobs." The research was carried out under the EQUAL initiative, an EU programme designed to combat discrimination and exclusion.

While recommending more research to validate its results over a broader area, the report suggests that more support should be given to unemployed people over 50, through greater development of social networks and skills by employment agencies; more work placements to enable people to widen their skills and social networks; and by increasing the number of volunteering opportunities.

Source: Press Release Napier University Employment Research Institute (January 17, 2006)

Iowa: Legislation Advances To Repeal Income Tax on Pensions and Social Security

The Iowa House Ways and Means Committee voted to eliminate the personal income tax on pension and social security benefits. The legislation, House Study Bill 502, is a five-year phase-out of the state tax on both pensions and Social Security benefits. The phase-out in HSB 502 begins in calendar year 2007. According to Committee Chairman Jamie Van Fossen (R-Davenport), Iowa is one of only 15 states that still taxes social security benefits, while most states that impose an income tax exempt at least part of pension income from taxable income; only three states fully exempt all public and private pensions from taxation.

Source: Newletter Jamie Van Fossen's Week in Review (January 13, 2006) Check this link later

For Governor Tom Vilsack 's perspective, see Quad City Times in which it is reported that he acknowledged that taxing retirement income is an issue in border communities such as the Quad-City area, but believes retirees leave the state because of the weather, not the tax climate. Nonetheless, he told reporters and editors he would be more interested if Republicans considered doing away with the ability of Iowans to deduct federal taxes from their state tax liability.

Commentary: Boosting Iowa To Entice Older Workers

Richard Doak, a columnist for the Des Moines Register, is recommending that if Iowa is going to maintain a workforce anywhere near the size of the present workforce, it will need a lot of people to decide to keep working beyond traditional retirement age. In particular, state government and private-sector employers should work together to provide a lot more of the kind of jobs older workers are interested in--ones that give them a sense of giving back to the community, and generally with less stress and probably less than full-time hours. Thus, he suggests Iowa needs things such as:

• Fast-track procedures in licensing and certification to allow mid-career workers to shift into rewarding fields such as social work, health care and community development.
• More jobs that offer part-time, flex hours and seasonal employment, so seniors can work but still take in their grandkids' Little League games or make a snowbird trip south.
• More housing developments, transportation, recreation and workplaces that involve less hassle, more ease of living.

Source: "Make Iowa the place to be for older workers"Des Moines Register.com (January 16, 2006)

United Kingdom: New Projections of Over-65 Workforce to 2020

The United Kingdom labor force is projected to continue growing and reach 32.1 million people in 2020, on the basis of current trends, according to an article in the January issue of Labour Market Trends. This is a 6.7% increase on the 2005 figure of 30.1 million. It is expected that the number of people remaining economically active above pension age will increase; specifically, the number of over-65s still economically active will increase from 582,000 in 2005 to 775,000 in 2020. Overall, the economic activity rate for working-age people is projected to increase from 78.5% in 2005 to 79.8% in 2020.

The most significant demographic trend affecting the labor force over the next 15 years is expected to be a 23.5% increase in the number of people aged 50 and over. This is a combined effect of the overall trend towards higher life expectancy as well as the transition of the baby boom generation to the 50 and over age group.

Source: News Release National Statistics (January 12, 2006)