Expert Knowledge May Offset the Impact of Old Age in Some Occupations

According to a study published in the February 27, 2007, issue of Neurology®, older pilots performed better over time than younger pilots on flight simulator tests. The results of a three-year longitudinal study by Joy L. Taylor, PhD, Quinn Kennedy, PhD, Art Noda, MS and Jerome A. Yesavage, MD were published in "Pilot age and expertise predict flight simulator performance". Among other things, the authors found that "while older pilots initially performed worse than younger pilots, older pilots showed less of a decline in overall flight summary scores than younger pilots, and over time their traffic avoidance performances improved more than that of younger pilots."

“These findings show the advantageous effect of prior experience and specialized expertise on older adults’ skilled cognitive performances,” said study author Joy L. Taylor, PhD, with the Stanford/VA Aging Clinical Research Center in Palo Alto, California. “Our discovery has broader implications beyond aviation to the general issue of aging in the workplace and the objective assessment of competency in older workers.”

In the same issue, Joseph I. Sirven and Daniel G. Morrow have an editorial--"Fly the graying skies: A question of competency vs age" suggesting that the study had implications "well beyond aviation," noting the rapid aging of the population means increasing numbers of older workers in critical occupations. As quoted in The San Francisco Chronicle:

"It is time to reconsider fixed age limits for the workplace and consider transitioning to competency-based evaluations of performance," said the editorial authors, Dr. Joseph L. Sirven of the Mayo Clinic and Daniel G. Morrow of the University of Illinois at Champaign-Urbana. "Better simulation techniques need to be developed not only in aviation, but also in medicine and other careers where public safety is at risk.

Source: American Academy of Neurology Press Release (February 26, 2007)

Other Sources: The San Francisco Chronicle "Experience tops youth in study on aging pilots" (February 27, 2007); HealthCentral.com "Pilot Study Questions Wisdom of Mandatory Retirement" (February 28, 2007)

Singapore: Older Men Making Greater Gains than Older Women

Singapore has set a record high proportion of the older population in the labour force and in employment. Key findings of an occasional paper on "A Statistical Profile of Older Workers" from the Ministry of Manpower's Research and Statistics Department show that both the participation and employment rates of older males in Singapore compare favourably to countries in the region and beyond and that while older females have also made significant gains, their participation and employment rates are still relatively lower than in many developed countries.

Specifically, the participation rate among resident males aged 60 to 64 rose from 49% in 1996 to 63% in 2006, while among females in the same age group, the rate rose from 15% to 26%. For men, that is significantly higher than participation rates in Hong Kong (45%), Taiwan (47%), Germany (41%), Netherlands (31%), France (19%), the United Kingdom (56%) and the United States (59%).

Among other findings, older workers were more likely to be self-employed (26%) than the younger cohort (12%), older workers have a lower incidence of switching jobs, and full-time older workers tend to work longer hours compared to those younger.

Source: Ministry of Manpower Press Release (February 22, 2007)

United States: Federal Reserve Bank Study of Aging Demographics Suggests Retaining Older Workers Can Help Reduce Decline in Consumption Rates

In a paper discussing the consequences of population aging from a macroeconomic perspective and considering alternative paths the U.S. economy could follow in response to population aging, three Federal Reserve Bank economists conclude that, barring a significant increase in labor force participation, population aging will lead to a reduction in per capita consumption relative to a baseline in which the demographic composition of the population does not change.

Among other things, Louise Sheiner, Daniel Sichel, and Lawrence Slifman suggested that an alternative to reducing consumption is to raise output by increasing labor force participation and presented the results of simulations with higher labor force participation by the elderly. Accordingly, one of the main macroeconomic policy questions for the nation is "How much can we (and should we) raise labor force participation?"

In all likelihood, a rise in participation rates for workers aged 55 and over would be necessary. An increase of this magnitude would probably require major adjustments to both business and government policies. For example, businesses could re-structure their operations to include more opportunities for part-time or flexible work schedules, which are often appealing to older workers, or the government could make adjustments to such things as the age at which workers are first entitled to receive Social Security benefits (the early retirement age) and the age at which they are eligible to receive Medicare as well.

Source: The Federal Reserve Bank Finance and Economics Discussion Series 2007-1: "A Primer on the Macroeconomic Implications of Population Aging" (January 16, 2007)

European Court Upholds Collectively-Bargained Mandatory Retirement Age

Jan Mazak, an Advocate-General of the European Court of Justice, has rendered an opinion that European law allows individual countries to pass legislation permitting mandatory retirement ages. Thus, a provision in the Spain's discrimination laws that effectively allows employers to force staff to retire at 65 is compatible with European law.

The dispute was brought by Félix Palacios de la Villa against Cortefiel Servicios SA, in which Mr Palacios claims that his dismissal on the ground that he had attained the compulsory retirement age laid down in a collective agreement was unlawful. However, the Advocae-General ruled that the European principle of non-discrimination on grounds of age does not preclude a national law pursuant to which compulsory retirement clauses contained in collective agreements are lawful, where such clauses provide as sole requirements that workers must have reached normal retirement age and must have fulfilled the conditions set out in the social security legislation of the Member State concerned for entitlement to draw a retirement pension under the relevant contribution regime.

This decision particulary attracted attention in the United Kingdom.

Although [the] case concerns collective employment agreements, which are much less common in the UK than elsewhere in Europe, lawyers said that the legal opinion also applies to individual contracts and so the case is directly relevant to British workers.

James Baker, an employment lawyer at Macfarlanes, said: “This opinion will disappoint thousands of workers in the UK who are pinning their hopes on a legal challenge to the mandatory retirement age.

Source: European Court of Justice Opinion of Advocate General C-411/05 Palacios de la Villa (February 15, 2007)

Other References: The Times of London "Blow for workers as European court says mandatory retirement is lawful" (February 15, 2007)

U.S. Senate Schedules Hearing, Webcast on Aging Workforce

The U.S. Senate Special Committee on Aging held a hearing on February 28, 2007 on "The Aging Workforce: What Does it Mean for Businesses and the Economy?" Chairman Herb Kohl chaired the meeting held at 10:30 a.m. in Dirksen 628. A webcast is available from the Committee's website.

The Center on Aging & Work/Workplace Flexibility at Boston College had announced that Dr. Marcie Pitt-Catsouphes was invited to testify at the hearing on the effect of the aging workforce on businesses, best practices that promote workplace flexibility, and the extent that employers are prepared for the aging workforce.

Sources: Senate Special Committee on Aging Home Page; Center on Aging & Work/Workplace Flexibility at Boston College Home Page

United Nations: Older Workers Part of Agenda for Commission for Social Development

On February 7, the United Nations Commission for Social Development opened its 45th session on promoting full employment and decent work for all. Among other things, the Commission will review the Madrid International Plan of Action on Ageing, five years after it was adopted at the Second World Assembly on Ageing.

Under-Secretary-General for Economic and Social Affairs, José Antonio Ocampo, said that strong economic growth in 2006 had not led to substantial reductions in unemployment rates and included older workers among those facing increasing insecurity in the workplace and shrinking opportunities for decent work. Han Schölvinck, Director, Division for Social Policy and Development, Department of Economic and Social Affairs, noted that a report on the nearly five years since the Second World Assembly on Ageing showed that there are tremendous challenges facing the world’s rapidly ageing populations and observed that the active participation of older persons in society was impossible without protecting their rights and fighting against age-based discrimination and making concerted efforts to empower them.

Among the documents prepared for the Conference, the Report of the Secretary-General on Promoting Full Employment and Decent Work for All found:

104. The number of older persons remaining employed varies considerably around the world. Countries with high per capita incomes tend to have lower labour force participation rates among older persons. Older persons in less developed regions continue to participate, to a great extent, in the labour force, owing largely to the limited coverage of social security schemes and the relatively low guaranteed incomes.

105. Unfortunately, older persons face discrimination in employment. Older persons should have the opportunity to work or to have access to other income-generating opportunities as well as to determine when and at what pace to withdraw from the labour force. Continuing educational opportunities and opportunities to update skills could help to empower older persons to decide for themselves when to leave the labour force. In order to fully empower older persons to leave the labour force when they want to, pensions and health care should be available to them so that they are not forced to work for survival.

Source: U.N. Economic and Social Council Press Release (February 7, 2007)

Finland: Retirement Age Rising

According to a report in Helsingin Sanomat, studies are showing that since the 2005 pension reform, which allowed a person aged under 68 to stay at work and be covered by pension insurance, the retirement age of Finns has been rising. "Fewer people aged 63 to 65 take retirement than previously, and more and more older citizens stay at work, thanks in part to the good employment situation."

The Finnish Centre for Pensions found that in 2006, the expected effective retirement age rose by almost six months for both 25-year-old and 50-year-old employees alike. In addition, the Labour Force Surveys of Statistics Finland indicate a similar trend, with the employment rate of persons aged 60 to 64 having risen by almost 10 percentage points since 2004.

Source: Helsingin Sanomat "Fewer Finns aged 63 to 65 opting for retirement" (February 9, 2007)

Korea: Government To Raise Retirement Age

According to a report in the Korean Herald, the government plans to raise workers' retirement age as one prong of a strategy to fend off anticipated labor shortages. Another prong is to reduce the length of compulsory military service.

With respect to retirement, the government will push measures to extend the retirement age by five years--raising the age for receiving public pension payments by five years to 65 by 2033; currently, Koreans on average retire at 56.8 years of age. In addition, the government will provide support for employers to allow their workers to retire later and also remove some discriminatory rules against senior workers.

Source: The Korea Herald "Seoul to raise retirement age" (February 6, 2007)

Commentary: Early Retirement Trend Reversing in Australia

Ross Gittins, commenting in the Sydney Morning Herald on the sharp increase in the number of older workers staying in employment, observes that the rise has been caused by men staying in full-time jobs--that is, it represents "men staying in employment and not retiring, rather than men who'd formerly retired being enticed back into the workforce." Women is a different story, as participation by women aged 55 to 64 has been constantly rising as part of the general trend for women to return to or stay in the workforce.

In looking at various explanations for the reversal, Gittins notes that, in earlier times, a lot of the supposed early retirement was involuntary, while more recently there's been a lot fewer involuntary departures from the workforce. In addition, he notes that "the now ageing baby boomers are healthier and better educated than the generation that preceded them" so that "they may have higher expectations for retired comfort than could be satisfied by just the proceeds of the age pension." Finally, while he believes that prejudice against older workers is dissipating rapidly, this is "less because of the sermons than because of the shortage of experienced, steady workers. Market forces strike again."

Source: Sydney Morning Herald "Another myth bites the dust" (February 7, 2007)

Webcast--February 14: "Retaining the Energy and Expertise of Experienced Employees"

The Human Capital Institute (HCI) is hosting a free webcast on February 14 from 2:00 PM to 3:30 PM EST will explore proven techniques for developing, motivating, and managing an aging workforce with highly valuable skills and experience. William C. Byham, Ph.D., will present "70 Is the New 50: Retaining the Energy and Expertise of Experienced Employees," addressing the elements of a retirement management system, how retirement fits into a broader talent management system, and how to effectively implement a successful retirement management program.

To register for the webcaset, click here. Following the event, HCI archives its webcasts.

Source: Human Capital Institute Press Release (January 30, 2007)

Study: Links between the Work and Health of Older Women Go Unexplored

A report issued by Help the Aged and The Age and Employment Networks (TAEN) hows how little is known about the work and health of older women. According to the findings of of the paper--"Older Women, Work and Health--reviewing the evidence", greater commitment to age and gender equality is needed in occupational health research, the organisation of work, workplace health interventions and in the framing of wider social policy if the needs of older working women are to be met.

Pamela Holmes, healthy ageing spokeswomen for Help the Aged, says: “We believe taking action in mid-life is vital to preventing deprivation and to reducing the risk of ill health in old age. Women live longer than men, but earn far less, with lower levels of savings and pension provision. It’s critical that women who need or want to work in their 50s and beyond should be able to so – and for work to be beneficial rather than detrimental to their health.

“We hope the publication of this report will help draw attention to the gaps in our knowledge in this important area. We urge government, employers, occupational health professionals and researchers to take steps to address the issues raised.”

Source: The Age and Employment Network (TAEN) Press Release (November 7, 2006)

Aging Population Could Stall Economic Development in New Hampshire and New England

According to a report prepared by Northeastern University’s Center for Labor Market Studies, New England’s aging population could stall economic development and job growth in the future and the numbers are particularly significant in New Hampshire, which the report indicates has a larger and more rapidly growing share of the older population.

Released as part of The New England Council’s Older Worker Initiative, the report forecasts, among other things, that from 2005 to 2015, about 90% of the net increase in the size of the New Hampshire resident working age population will be from among those aged 55 or above and that the share of persons in the working age population of teens and young adults will fall by 2% and that of older prime age workers (ages 35 to 54) will decline by 6%.

“As the baby boom generation enters retirement age, New England employers will become increasingly dependent on older workers – those aged 55 and above – to meet the demand for skilled workers. The ability to retain and recapture these older workers in the labor force will be critical to the long-term economic prosperity of the region,” said James Brett, president and CEO, of The New England Council, the nation’s oldest regional business organization.

Source: The New England Council Press Release (January 31, 2007)

Urban Institute Research Assess Impact of Raising Social Security Retirement Age

Research from the Urban Institute's Retirement Policy Project looking into proposals that would raise the age at which workers can first receive Social Security retirement benefits suggests that lifetime benefits for all groups would be lower, but less so for those with lower lifetime earnings and less education. However, it would push more retirees into poverty: raising the age to 69, for example, would increase the share of retirees with incomes below the wage-indexed poverty level in 2050 from 14.4% under the current system to 16.2% percent, an increase of 1.5 million people.

The Urban Institute's research is included in five separate research briefs. One--"How Long Do Boomers Plan to Work?" by Gordon Mermin, Richard W. Johnson, and Dan Murphy--finds that as boomers approach retirement, "they intend to work longer than people born a dozen years earlier did, a shift that will help promote economic growth and partly offset the economic pressures created by an aging population." Among workers ages 51-56 in 2004, 51% said they expect to work past age 62, up from 47% among comparable workers in 1992.

The other four reports are:

• "Would Raising the Social Security Retirement Age Harm Low-Income Groups?"
• "Minimum Benefits in Social Security: Design Details Matter"
• "Minimum Benefits in Social Security Could Reduce Aged Poverty"
• "Racial Differences in Baby Boomers' Retirement Expectations"

Source: Urban Institute Press Release (January 30, 2007)

Survey: Older Workers Have Fewer Injuries, but Greater Costs per Injury

According to a survye conducted by National Council on Compensation Insurance, Inc. (NCCI), on average, younger workers have higher incidence rates of workplace injuries and illnesses than older workers, while older workers have higher costs per claim. As the leading edge of the baby boomer generation approaches age 60, the aging of the workforce has grown as a topic of interest in workers compensation. However, NCCI's research shows that age may be becoming less of a difference. Specifically, the survey--"Age as a Driver of Frequency and Severity"--found, among other things, that:

• while age is an important factor in overall claim costs, the significance of age on frequency has diminished;
• a significant portion of the differences in claim severities between younger and older workers were accounted for by other factors correlated with age—average wages, claim durations, lump-sum payments, injury diagnoses, and number of medical treatments;
• differences in wages and claim durations accounted for a majority of the difference in indemnity severities between younger and older workers; and
• the key driver explaining about 70% of the difference in medical severities between younger and older workers is the markedly higher number and different mix of treatments within a diagnosis.

Source: National Council on Compensation Insurance, Inc. News Release (January 25, 2007)

Survey: Tenure Rather than Age Major Factor in Workplace Enthusiasm

According to a survey conducted by Sirota Survey Intelligence, the differences one finds at work between older and younger people are largely a result of tenure--not age, thus, debunking, according to Sirota, the myth that there are major differences between generations in what people want from their jobs.

Sirota examined the overall satisfaction expressed by 64,304 workers in employee attitude surveys the firm conducted for their employers. Both younger (aged 25-34) and older (55 and older) employees showed a sharp decline in their satisfaction from their first year of employment--from 69% in both cases to 54% and 53%, respectively, among those with 2 to 5 years’ experience.

Source: Sirota Survey Intelligence News Release (January 22, 2007)

European Year for Equal Opportunities for All Launches

The 2007 European Year for Equal Opportunities for All (EYEO), which kicks off in Berlin on January 30th at the first ever Equality Summit, launched its website and published the results of an EU survey on anti-discrimination. The survey--Special Eurobaromter: Discrimination in the European Union--highlights that awareness of the existence of anti-discrimination laws (on grounds of sex, ethnic or racial origin, age, sexual orientation, disability, religion or belief) is still relatively low in the EU.

Among other results, the survey shows that a broad majority of Europeans believe that being over 50 (69%) is a disadvantage in their society, and many also believe that more people over 50 (72%) are needed in the workplace.

When it comes to getting a job, disability and age are the two main factors which Europeans believe put people most at a disadvantage. Close to 8 out of 10 respondents feel that with equivalent qualifications, a person aged 50 or over stands less chance when it comes to employment or promotion compared with a person aged under 50, and similarly a disabled person compared with an able-bodied person. Many respondents (68%) believe that, for women, family responsibilities are an obstacle to accessing management positions. Support for this view is particularly strong in Spain and Germany (both 76%).

Source: Employment, Social Affairs and Equal Opportunities News Release (January 23, 2007)

Recruiting: Web Sites for Attracting Baby Boomers

A posting on the ere.net's Inside Recruiting blog discusses how some niche job boards and staffing agencies are helping a growing number of companies in trying to penetrate the boomer demographic to fill key staffing shortages and maintain a competitive edge. These incclude:

• The Refirement Group, which works to help redefine the attitudes and expectations of the boomer workforce through workshops and consulting.
• Continuing Careers.com, a niche job board, which posts jobs and directs applicant to the company's website.
• The Boomer Group, a staffing company that matches boomers looking for either part-time or full-time work with employers who need experienced help.

Source: Inside Recruiting "Catering to the Boomer Crowd" (January 26, 2007)

United Kingdom: Flexibile Retirement and Pensions

Age Positive has issued a news release stating that, since the pension provision of the United Kingdom age regulations came into force on 1 December 2006, concerns have been expressed with regards to flexible retirement not being adequately covered by the regulations or accompanying guidance. In particular, points have been raised about the ability of employers and schemes to alter accrual or payment in the light of working beyond normal retirement age. According to the Department for Work and Pensions (DWP), this is a complex and developing area and it intends to examine whether it is possible to provide greater certainty where flexible retirement and pensions is concerned.

In conjunction, Age Positive has published a report--Flexible Retirement: A Snapshot of Employer Practices 2006--produced for DWP by Employers Forum on Age (EFA) and IFF Research Ltd. The findings include a practical guide (a checklist) for employers who may wish to take advantage of the rule changes in order to deliver flexible retirement options for their employees. In addition, it the report includes a small number of case studies illustrating how some large employers developed (or are in the process of developing) flexible retirement policies.

Source: Age Positive News Release (January 17, 2007)

Canada: Minister Appoints Expert Panel to Study Labour Market Conditions that Affect Older Workers

Monte Solberg, Canada's Minister of Human Resources and Social Development, has announced the appointment of an expert panel to study labour market conditions affecting older workers. The Panel will look at potential measures to help older workers, including improved training and enhanced income support, such as early retirement benefits.

"The fact is that seniors and older workers have helped build this country," said Minister Solberg. "Our population is ageing and we are facing labour shortages. Now is the time to look at issues faced by older workers and make sure that they have the knowledge and tools they need to contribute to a strong Canadian work force."

The objective of the panel is to undertake a feasibility study on older workers as outlined in Budget 2006: "...conduct, in partnership with provinces and territories, a feasibility study to evaluate current and potential measures to address the challenges faced by displaced older workers, including the need for improved training and enhanced income support, such as early retirement benefits."

The panel, chaired by the Honourable Erminie Cohen, a retired Senator, is to provide a report on various matters outlined in a background statement, along with recommendations on potential government and stakeholder actions, to the Minister by the summer of 2007.

Source: Human Resources and Social Development News Release (January 23, 2007)

Paper Establishes Index for Age Bias in the Workplace

RetirementJobs.com, a web destination for people aged 50 plus, has published a research paper based on results from the company's ongoing online survey of mindsets and practices of employers and 50 plus workers related to real and perceived age-bias. According to "Age Bias in the American Workplace: A "Fact of Life" Enters Its Own Phased Retirement", employers are three times more likely (36%) to report that "age bias is declining" compared to only 12% of workers, while 96% of workers believe age bias to be a problem, a smaller number, 77% of workers "actually have experienced or observed" workplace age bias, and only 17% of employers are believed to be making "a conscious effort to attract workers 50 and over."

"Workplace age bias is undergoing its own phased retirement," says Tim Driver, CEO of RetirementJobs.com. "Older employees are electing to work longer than planned. Employers, meanwhile, increasingly understand the merits of retaining and hiring workers that connect with customers, are dedicated, turn over less often (than younger employees), and hold valuable lessons learned from their prior careers." The report cautions that a symbiotic worker/employer relationship is "vital in healthcare, retail, customer services, sales, financial services, the crafts and trades, engineering, skilled manufacturing, the sciences, education and in government. These areas are already experiencing a shortage of workers while also facing large numbers of retirements in the next several years."

In its paper, RetirementJobs.com has established the an Age Bias Index to serve as a barometer by which developments in the status and perceptions of age bias among employers, employees, and the general population may be measured.

Publication of the paper also coincides with RetirementJobs.com's clarion "call to action" to confront and reduce workplace age bias.

Source: Retirementjobs.com Press Release (January 23, 2007)