Older workers and job creation Dr.E.Mestheneos Vice-President, AGE 50+Ellas

The position of older workers in the labour Market. Job creation primarily in –IT and knowledge based industries - Overall negative impact for older workers as demand for older skills has declined. –Service occupations e.g. care work, retail are overall “positive” in creating more jobs for women, including older women, often part time and/or flexible, but negative in terms of wages levels.

Difficulties for Older workers Majority are less educated than younger generations but large Member State differences. Lower level of familiarity with IT. Most Member States have invested little in training older workers especially in new skills and knowledge. Where this occurred, it is often done inappropriately, designed for the minds of young people and not those of older learners. Where seniority is used as the main basis for wage increases,older workers appear more expensive than younger ones (though real wage levels vary between Member States). Early retirement schemes, available in earlier decades, have influenced expectations. The above have generated negative attitudes amongst managers, line managers and many workers towards the retention, recruitment, career development and training of older workers. Bad or inadequate management especially in the public sector and in small and medium enterprises.

Positive aspects Experience. Knowledge e.g. of the products, customer, organisations, service and the work itself. Loyalty. Member States vary enormously in the levels of education and skills amongst the older generations of workers. But this is dynamic. Employment rates are lower for the less educated overall, while this age group are also more likely to leave the labour force earlier as they entered it earlier! Need to use the number of years worked rather than simply the age at which people leave the labour force to understand trends.

Actual increases in older workers participation In the EU-25, the employment rate of people aged increased by 5.9 percentage points from Spring 2000 to 2005 (1.2 points due to the change in the population structure by age - varies between Member States.) Relative to employment levels in 2000, growth has been greatest for the 55–64 age group.

Older workers participation

Why the increases? Some Member States have reduced the barriers to working while receiving pensions, and provided tax incentives for older people to work. There has been an increase in the educational levels amongst older workers Labour market attitudes have started to change e.g. age discrimination legislation is important. Some organisations / enterprises have started to increase their investment in their older labour force. e.g. through training, career management, consultation, cooperation. Older people are in better health than in previous generations. The increases in the age at which people receive their pension, promoted by Member States, are unlikely to be nearly as important as the above factors.

Job creation Entrepreneurship depends on the individual and on opportunities. We need more information on the reasons for the higher rates of self-employment amongst older workers in most Member States which is not only a negative choice. In business older managers usually make investment and development decisions.