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)