Europe: Auditors Cannot Assess if Government Initiatives on Older Workers Actually Help

A report issued by the European Court of Auditors has found that neither European states nor the Commission are in a
position to establish how many older workers have gained new qualifications, or found or kept a job after having benefited from an action funded by the European Social Fund (ESF). According to "Are Tools in Place to Monitor the Effectiveness of European Social Fund Spending on Older Workers," the necessary tools to provide relevant and reliable information that ESF spending is meeting the European Union's strategic objective of increasing the employment rate of older workers have not been put in place by most audited member states.

Accordingly, the Court is recommending that, among other things, the Commission should require member states to design their operational programs (OPs) in such a way that the performance of the ESF funds can be measured. Specifically, the target populations should be unambiguously defined and relevant, quantified operational goals and indicators should be
defined to measure outputs, results and specific impacts at target population group level. Intermediate milestones should be set and a hierarchy of target values established. In addition, it should obtain consistent and reliable information from the Member States in order to be able to provide appropriate information on the means mobilized and the results achieved by the ESF.

The report notes that there were 117 ESF OPs for the 2007–13 programming period, of which 63 addressed older workers in at least one of the following aspects--(a) the OP explicitly identifies older workers as a target group, (b) the OP defines specific indicators to monitor the progress made for this group, or (c) funds were allocated for measures encouraging active ageing and prolonging working life.

Source: European Court of Auditors Press Release (March 5, 2013)

United Kingdom: Study Finds Women and Husbands Working Longer Since Female Pension Age Was Raised

The change at which age women can first receive a state pension in the United Kingdom has had a strong effect in increasing employment among those women directly affected by the reform, but has also changed the behaviour of some of the husbands of the affected women, according to new research. According to the Institute for Fiscal Studies Working Paper ("Incentives, shocks or signals: labour supply effects of increasing the female state pension age in the UK"), the affect on men may possibly be because they are delaying their own retirement so they both retire together or perhaps to cover their wives’ lost pension income with additional earnings.

Under legislation enacted in 1995, since April 2010 the age at which women can first receive a state pension has been rising from 60. It is currently at 61 years and 5 months and is due to rise to 66 by 2020. The findings show that, as a result of the one year increase in the female state pension age--from age 60 to 61--that occurred between April 2010 and April 2012:

• employment rates among 60 year old women have increased by 7.3 percentage points: in other words, in April 2012 there were 27,000 more women in work than there would otherwise have been;
• employment rates among their husbands have increased by 4.2 percentage points: in other words, there were 8,300 more men in work than there would otherwise have been;
• 1.3 percentage points more women aged 60 were unemployed: in other words, there were 5,000 more women aged 60 not in work but looking for work than there would otherwise be;
• the UK’s public finances have been strengthened by around £2.1 billion.

According to Jonathan Cribb, a research economist at the Institute for Fiscal Studies and a co-author of the report:

So, despite the weak performance of the UK economy over these two years, many have been able to limit the loss of state pension income through increased earnings. These results apply only to the first groups affected and how women and men respond may change as the pension age rises further. But this is initial evidence that raising pension ages can have significant positive effects on employment.

Source: Institute for Fiscal Studies Press Release (March 8, 2013)

United Kingdom: Guide Published for Employing Older Workers

The United Kingdom's Department for Work and Pensions has published a guide for employers on today’s multi-generational workforce. "Employing Older Workers. An employer’s guide to today’s multi-generational workforce" is drawn from from employers who report clear business benefits from
effectively managing an ageing multi-generational workforce and provides answers to employer questions and offers non-bureaucratic solutions tried and tested by employers of various sectors and sizes.

It also addresses misconceptions about employing older workers concerning productivity, up-skilling, health and ‘blocking’ opportunities for younger workers. Many successful employers report the benefits of employing older workers as part of a multi-generational workforce include:

• a broader range of skills and experience;
• opportunities for mentoring new recruits;
• transfer of skills across the workforce;
• reduced staff turnover; and
• improved staff morale.

Source: TAEN News Release (February 19, 2013)

AARP Starts Releasing Snapshots of 2013 Multicultural Work and Career Study

AARP has announced that it is completing work on its 2013 Multicultural Work and Career Study. Following up on studies performed in 2002 and in 2007, the report will provide an in-depth look at workers ages 45-74: their reasons for working, perceived job security, differential treatment received because of age, their ideal work scenario, the challenges they face, their plans for retirement, and more. In advance of the full report AARP has released its first snapshot, looking at African Americans.

According to the snapshot, a large number of older African-Americans are anxious about continuing weaknesses in the economy and small businesses in which they are involved. Among other things, the study reports that approximately 24% of these workers have lost a job in the past five years, financial motives--money (96%) and saving for retirement (92%)--are the top reasons for working (although 91% also report enjoying their job), and 57%have been in the same job for at least five years.

Source: AARP Surveys and Statistics (February 2013)

Survey: Conference Board Reports U.S. Workers Increasingly Delaying Retirement

According to a new study by the Conference Board, more U.S. workers than ever are planning to delay retirement. Specifically, the Executive Action Report "Trapped on the Worker Treadmill?" shows that, in 2012, 62% of 45- to 60-year-olds reported at least a 20% decline in the value of their financial assets since the start of the crisis (up from 42% in 2010), and that this has led to a 21-percentage-point increase in plans to delay retirement between 2010 and 2012.

“It’s disconcerting that the two years in which the U.S. economy seemed to finally, if fitfully, turn the corner also left so many more workers compelled to change their retirement plans late in their careers,” said Gad Levanon, Director of Macroeconomic Research at The Conference Board and a co-author of the report. “This may benefit some businesses and industries, by reducing labor shortages and skill gaps as experienced workers stick around. At the same time, their delaying retirement can be a significant obstacle to the many companies seeking to cut costs. Mapping out the implications of the trend for individual firms and the economy as a whole means first understanding the drivers behind workers’ retirement decisions.”

According to the report, workers aged 45–60 who’ve experienced a job loss, salary cut, or significant decline in home price are much more likely to have plans for delaying retirement, and the proportion of respondents reporting each of those three misfortunes rose between 2010 and 2012. However, this only explains about half the increase in delayed retirement plans. The remainder, according to the report, reflects larger and longer-term economic and sociological factors, such as shift from defined benefit to defined contribution plans, lower interest rates on savings, better health and longevity, and increasing scarcity of post-retirement health benefits.

Sources: The Conference Board Press Release (February 1, 2013); Human Capital Exchange Blog (February 1, 2013)

United Kingdom: Survey Finds Average Age Increasing among Employees

A survey conducted by Group Risk Development (GRiD) has found that 33% of employers in the United Kingdom have seen the average age of their workforce increase over the last year, a period following the abolition of the Default Retirement Age (DRA). In addition, GRiD reports that 25% of employers said that DRA removal had enabled them to retain knowledge and experience within their business, and a further 17% felt it had increased the diversity in their workplace.

Other findings from the survey indicate that:

• 59% of employers felt that the removal of the DRA meant they were
  more likely to recruit employees aged 50 and over;
• 23% of employers felt that older workers were a store of knowledge;
• 22% of employers said they were more likely to be loyal to the company; and
• 14% of employers said that older employees had the ability to motivate other staff.

On the "negative" side of employing a more age diverse workforce, the survey found that 27% of the employers had seen an increase in absence rates or age related health conditions (such as diabetes and arthritis) since the removal of the DRA. Source: m Group Risk Development Press Release (January 28, 2013)

United Kingdom: 55 Plus Struggling To Find Work through Government Program

According to AgeUK, an analysis of the United Kingdom’s Work Programme finds that participants aged 55 and over are finding it harder than any other age group to move back into work, with the problem particularly acute for those 60 and over.

The figures show that of the 9,500 people aged over 60 referred by Job Centre Plus to the Work Programme in the first 14 months of the scheme, only 140 people (1.48%) managed to find a job through the scheme.

For people aged 55-59 the rate was 2.79 %. These figures compare to a success rate for 18-24 year olds of 3.78% and (3.75%) for those aged 25-34. The overall rate is 3.56%.

Commenting on these figures, Michelle Mitchell, Charity Director General of Age UK said that they are a "stark reminder of the huge challenges facing unemployed older people. Many are being locked out of the job market for no reason other than their age." One step that AgeUK is recommending is for the government to refer older people to the program sooner than the current 12 months after being out of work. In addition, AgeUK is urging that the contractors running program receive incentives to encourage them to find jobs for older people.

Source: AgeUK "Over 55s let down by Government’s Work Programme" (December 12, 2012)

Insurance Industry Extends Research Finding Few Age Differences among Workers Compensation Claims

The National Council on Compensation Insurance (NCCI), which published a report in 2011 finding that, on average, costs for workers aged 35 and older tend to be quite similar, has published a new report that extends the 2011 analysis and finds additional similarities between the 35-and-older-age cohorts. Specifically, "NCCI Workers Compensation and the Aging Workforce: Is 35 the New “Older” Worker?" compares the share of claims by diagnosis and age cohort resulting from permanent partial, temporary total, and medical-only injuries, goes on to identify the factors that account for the observed increases in severities over time for various age cohorts, and concludes by examining safety and loss control programs related to the aging workforce.

Among other things, the report finds that, for a range of specific diagnoses, the shares by type of workplace injury (i.e., temporary total, permanent partial, and medical only) are remarkably comparable across age cohorts. For example, the shares of claims due to "sprain of neck" that were temporary total injuries are virtually identical for both younger and older workers.

In addition, the report finds that injuries due to high severity diagnoses have historically been more common for older workers, but those high severity diagnoses are now becoming common in younger-age cohorts as well.

Source: National Council on Compensation Insurance Press Release (October 31, 2012)

Japan: Small Employers Lead Way in Allowing Workers Past 65 To Keep Working

Japan's Health, Labor and Welfare Ministry has released information showing that the proportion of companies where every employee can work until age 65 or beyond if they so wish rose to a record 48.8% in 2012, up 0.9% from 2011. However, this growth continues to be led by smaller employers. Only 24.3% of companies with 301 employees or more are allowing workers aged 65 or above to continue working, only a 0.5% from 2011.

Looking at the workers themselves, the Ministry's survey shows that 73.6% of 430,036 workers who reached retirement age in the past year were rehired, while only 1.6% of those hoping to be re-employed were not; 24.8% opted to retire.

In the Japan Times article on the report, it is noted:

Large firms will have to promptly take all necessary steps since revised legislation enacted earlier this year obliges them to let their employees continue working up to 65 years of age or older. The law was revised in view of planned changes to the public pension system, which will see the state pension eligibility age gradually raised from 60 to 65, beginning next April.

Sources: Japan Times "Record 49% of Japanese companies are letting seniors work beyond 65" (October 20, 2012); Health, Labor and Welfare Ministry Press Release (Japanese) (October 18, 2012);

OECD Issues Reports on Country Initiatives To Stimulate Employment of Older Workers Since 2005

In a series of country notes, the OECD has evaluated the impact of recent policy reforms and measures to boost job opportunities for older workers in 21 countries which participated in the OECD 2003-05 review of ageing and employment policies. According to the OECD:

The data show a steady increase over the past decade of the employment rate of people aged over 50 in the OECD area, from 55.6% of 50-64 year-olds in 2001 to 61.2% at the end of 2011. At the same time, the effective age at which people retire has increased slightly: for men, from 63.1 in 2001 to 63.9 in 2011 and for women, 61.1 in 2001 to 62.8 in 2011. The data also reveal a striking difference in 2011 between countries in the share of people aged over 60 still working: from 63.4% in Sweden to 14.2% in Hungary (see data for countries below).

In 2006, OECD issued its report "Live Longer, Work Longer" in which it recommended steps to:

• Strengthen financial incentives to carry on working and reducing incentives to retire early;
• Tackle employment barriers on the side of employers, such as increasing awareness of anti-age discrimination laws; and
• Improve the employability of older workers, such as boosting the incentives for job centres to place older unemployed job seekers in work.

More detailed analysis will become available in a chapter of the 2013 Employment Outlook in June 2013. In addition to the 21 country reports linked below, OECD issued a scorecard on older workers  in 34 OECD countries.

• Australia
• Austria
• Belgium (in French)
• Canada (forthcoming)
• Czech Republic
• Denmark
• Finland
• France (in French)
• Germany
• Ireland
• Italy
• Japan
• Korea
• Luxembourg (in French)
• Netherlands
• Norway
• Spain (in French)
• Sweden
• Switzerland (in French)
• United Kingdom
• United States

Source: OECD Ageing and Employment Policies (October 17, 2012)

Canada: Report on Employment Practices and Employability of Mature Workers in Montreal

Community Economic Development and Employability Corporation (CEDEC) has followed up its report on the perceived challenges of mature workers throughout the greater Montreal area with a survey of employers, recruitment agencies and employment service providers to understand their perspectives on the opportunities or challenges associated with hiring a mature worker. Among other things, CEDEC's "Employment Practices and Employability of the Hidden Talent Pool: The Mature Workers Report" suggests that mature workers maintain a positive reputation in the workforce, but also reports that stakeholders mentioned several critical factors affecting English-speaking mature workers’ capacity to find employment.

For example, CEDEC reports that "employers perceive older workers as generally stable, productive, committed, responsible, and highly motivated with strong work ethics." However, it also reports that workers "have difficulty finding employment; they experience various levels of prejudice (ageism) when looking for work and are keenly aware that they are being discriminated against as a result of their age." The factors that CEDEC finds employers citing as barriers to employability include a lack of French language skills, unrealistic salary expectations, lack of technological (mostly computer) skills, a resistance to change and unwillingness to work long hours or overtime.

CEDEC recommends that:

• the government should also be sensitized to the need to hire mature candidates for federal and provincial jobs.
• companies should have concrete strategies for retaining mature employees in their workforce.
• companies should understand and address the motivations and needs of mature employees while seeing the benefits of keeping mature workers on board.

Source: Community Economic Development and Employability Corporation News Release (October 5, 2012)

Study: Recommendations to Help Pittsburgh Deal with Critical Shortage of Younger Workers

The Three Rivers Workforce Investment Board (TRWIB) has released a report finding that Pittsburgh's workforce is aging faster than the national average and that it is facing a critical shortage of younger workers ready to move into jobs that will become available as a result of retirements in the workforce in the next 10 years. According to "Does Aging Matter? Workforce aging and its implication for collaborative talent management in the Pittsburgh region," a “disturbing scarcity of skills” for local jobs, especially in the areas of advanced manufacturing, education, healthcare, utilities and the trades, will leave the region without an adequate supply of younger workers with the skills to move into the jobs, and the expertise of older workers will be lost unless mentoring opportunities and programs are established.

While TRWIB proposes accelerating support of regional career, vocational training and technical centers to promote these careers, it also recognizes that reengaging older workers may help.

The size of the graying workforce presents a challenge to regional prosperity--especially if not utilized. Even if the business community can improve in managing an aging workforce, they cannot prevent layoffs or voluntary resignations of mature workers. As the cohort of older workers expands, we expect to see more displaced or transitioning talent in this age group.

Accordingly, on this front, TRWIB recommends:

• helping older unemployed workers navigate the labor market;
• developing effective job-seeking skills;
• use career coaching to help older workers to capitalize on their expertise and interests and to facilitate their transition into meaningful encore careers; and
• encourage self-employment and entrepreneurial opportunities by providing access to resources, training, and technical assistance for new
  entrepreneurs.

On the employer side, the report suggests:

• companies may need to reconsider recruitment strategies, find advertising channels and an image that appeal to
  mature workers;
• companies should learn to be more creative in generating
  opportunities for older workers who may be less productive due to a decrease of physical strength but have a substantial wealth of knowledge and skills developed within the company;
• flexible work arrangements, phased retirement, and other innovative models.

Source: Three Rivers Workforce Investment Board News Release (October 3, 2012)

Australia: Discussion Paper Released on Legal Barriers to Employing Older Workers

The Australian Law Reform Commission has released a discussion paper for the Commission's inquiry into legal barriers to older persons participating in the workforce and other productive work. In "Grey Areas: Age Barriers to Work in Commonwealth Laws," the Commission highlights its thinking to date and puts forward proposals for law reform in the areas of recruitment and employment, work health and safety, insurance, social security, and superannuation.

For example, on the issue of recruitment, the paper notes that "Mature age job seekers face multiple and intersecting difficulties in entering or re-entering the workforce and often utilise either the national employment services system or the services of private recruitment agencies." One proposal being put forward is that "The Fair Work Ombudsman should undertake a national recruitment industry campaign to educate and assess the compliance of recruitment agencies with workplace laws, specifically with respect to practices affecting mature age job seekers and workers."

Individuals and organizations are asked to make submissions in response to the 36 proposals and 15 questions in the discussion paper. Submissions may be made until November 23, 2012 at www.alrc.gov.au/content/age-barriers-work-discussion-paper.

Source: Australian Law Reform Commission Media Release (October 2, 2012)

UN Population Fund Issues Report on Global Aging

The United Nations Population Fund (UNFPA) has released a report showing that the number of older persons is increasing faster than any other age group, with the population of over-60-year-olds expected to reach one billion within the decade. Thus, among other things, "Ageing in the Twenty-first Century: A Celebration and a Challenge" calls for urgent action by governments to address the needs of the "greying generation."

If not addressed promptly, the consequences of these issues are likely to take unprepared countries by surprise. In many developing countries with large populations of young people, for example, the challenge is that governments have not put policies and practices in place to support their current older populations or made enough preparations for 2050.

The report does acknowledge that important progress has been made by many countries in adopting new policies, strategies, plans and laws on aging. With respect to employment, the report finds that 47% of older men and nearly 24% of older women participate in the labor force. Yet, despite the contributions that a socially and economically active, secure and healthy ageing population can give to society, the report also notes that many older persons all over the world face continued discrimination, abuse and violence. The report calls for governments, civil society and the general public to work together to end these destructive practices and to invest in older people.

Source: United Nations Population Fund Press Release (October 1, 2012)

Survey: Hiring Managers Prefer Mature Workers

According to a survey, conducted by Braun Research, Inc on behalf of Adecco Staffing US, hiring managers are three times more likely to hire a mature worker (60%) than a Millennial (20%). In addition, 91% of the hiring managers across a range of industries say they view mature workers as reliable and 88% considering them professional.

In the "Adecco Staffing Mature Worker Survey," found that there were hiring barriers for both age groups. While 39% of hiring managers didn’t see any challenges in hiring mature workers, compared to 27% for Millennials, 39% said the greatest challenge to hiring mature workers is their difficulty in learning/adapting to new technology, while--with respect to Millennials--46% of hiring managers viewed their unknown long-term commitment to a company as the biggest possible liability.

The survey also noted problems for both groups in the interview process:

Specifically, 51 percent of hiring managers cited mature workers’ biggest interview mistake as “high salary/compensation demands,” followed by 48 percent that cited “overconfidence in their abilities and experience.” For Millennials, the biggest mistakes were “wearing inappropriate interview attire” (75 percent) and “posting potentially compromising content on social media channels” (70 percent).

Source: Press Release (September 26, 2012)

Report: Long-Term Implications of Aging Population on United States

In a congressionally-mandated report on the aging of the U.S. population and its economic consequences for the country, particularly for federal programs that support the elderly, the National Research Council finds that Social Security, Medicare, and Medicaid are on unsustainable paths, and the failure to remedy the situation raises a number of economic risks. However, "Aging and the Macroeconomy: Long-Term Implications of an Older Population" also looked at issues about working and retirement and reports that:

• there is substantial potential for increased labor force participation at older ages, which would boost national output, slow the draw-down on retirement savings, and allow workers to save longer; and
• longer working lives would have little effect on employment opportunities for younger workers, productivity, or innovation.

According to Ronald Lee, professor of demography and economics at the University of California, Berkeley, and co-chair of the committee that authored the report, "[t]he nation needs to rethink its outlook and policies on working and retirement.... Although 65 has conventionally been considered a normal retirement age, it is an increasingly obsolete threshold for defining old age and for setting benefits for the elderly."

In addition, the report suggests that workers can better prepare for retirement by planning ahead and adapting their saving and spending habits.

A summary of the report is also available.

Source: National Research Council News Release (September 25, 2012)

United Kingdom: Rise in Older Workers and in Employer Fears of Cost of Health Issues

According to a survey from Aviva, companies in the United Kingdom are already starting to see a change in their workforce demographics resulting from elimination of the default retirement age, prompting fears that aging workforce health issues will affect their company. "Aviva’s Health of the Workplace" reports that 29% of employers are already seeing a rise in the average age of employees, 37% of employers expect to see their workforce get older in the future, and 38% believe that ageing workforce health issues will impact their company. Aviva does note, however that 50% of employers believe there are positive benefits for individuals working past the traditional retirement age.

A quarter (24%) of employers are concerned that an increase in the numbers of older employees will see sickness absence rates rise. A similar proportion of employers (26%) were concerned that older employees would be absent with more serious conditions than their younger colleagues. Not surprisingly, nearly three-quarters (70%) of employers believe that health issues in the workplace will increase because older employees suffer from different medical complications to younger employees.

Employers also note that they will need to respond to these concerns, 29% saying they would need to offer different health advice, 18% that they would need to offer different health benefits, and 23% that they would need training to help spot signs of serious illness, such as dementia. In addition, 36% realized they may need to introduce flexible working hours for older employees.

Source: Aviva News Release (September 27, 2012)

Ukraine: Age Discrimination in Hiiring, Government Incentives for Hiring Older Workers Coming

According to published reports, a survey conducted by the Kyiv International Institute of Social Studies has found that more than a quarter of Ukrainians say that they have suffered age-based discrimination while trying to get a job. In addition, the Kharkiv Institute of Social Studies, analyzing 7,000 employment ads, found that 15% of all printed ads and 58 percent of online ads contain age requirements for job seekers.

Daryna Shevchenko's article in the Kyiv Post reports that "experts say that employers fear hiring older people because they are viewed as less creative, less diligent, less efficient and more demanding as far as benefits go."

ay that employers fear hiring older people because they are viewed as less creative, less diligent, less efficient and more demanding as far as benefits go.

A law going into effect in 2013 may not change the lax discrimination laws, but will provide an incentive to hire older workers:

The new law that will come into effect in 2013 bans employers from demanding any private information about job seekers. It also guarantees that the government will subsidize anyone aged over 45 with 15 or more years of working experience who need to learn a new skill to become more employable.

Iryna Akimova, deputy head of the president’s administration, said the government will issue a voucher worth Hr 11,000 for a person to receive new training. She also said that the government will exempt companies from paying the single social tax for a year if they hire older employees, those who are raising disabled children and young people entering the job market.

Source: Kyiv Post "Employers shun older applicants" (September 13, 2012)

CareerBuilder Survey Finds Generational Differences in Workplace

CareerBuilder has reached the results of a national poll identifying generational differences in work styles, communication and changing jobs. Among other things, the survey reports that 34% of U.S. workers say their boss is younger than they are, and 15% say they work for someone who is at least ten years younger. "While most workers said it isn’t difficult to work for a younger boss, differences in work styles, communication and expectations illustrate the changing nature of office life."

Specifically, CareerBuilder compares older workers (those 55 and over) and younger workers (those 25 to 34) and finds, among other things:

• Communications: the older are more likely to prefer face-to-face contact (60% compared to 55%), while the younger are more likely to prefer text and e-mail (35% compared to 28%).
• Career paths: Younger workers tend to view a career path with a “seize any opportunity” mindset, while older workers are more likely to place value in loyalty and putting in the years before advancement.
• Working hours: Younger workers are more likely to log shorter hours--eight hours or less--than workers 55 and older (64% versus 58%) and are more open to flexible schedules (29% versus 20%).

Source: CareerBuilder Press Release (September 13, 2012)

Pew Researchers Find Delayed Retirement of Older Workers Does Not Harm Younger Workers

The Pew Charitable Trusts have published an issue brief exploding the he "lump-of-labor" theory, which holds to the notion that younger and older workers are engaged in a zero-sum game for a fixed number of jobs. Instead, according to "When Baby Boomers Delay Retirement,
Do Younger Workers Suffer?," there is no evidence that employment by Baby Boomers negatively impacted the labor force activity of younger workers.

Among other things, the brief reports that:

• an increase in older workers’ employment has been associated with an increase in younger workers’ employment rate and hours worked;
• this relationship between older and younger workers’ labor force behavior also holds true within states;
• this relationship does not vary by education level or by gender; and
• older workers’ employment has no negative impact on the hourly wages or annual incomes of youth.

Source: Pew Charitable Trusts Research Analysis (September 13, 2012)