ACTIVE LABOUR MARKET POLICY MEASURES FOR PRE- RETIREMENT UNEMPLOYED TO INTEGRATE INTO LABOUR MARKET Borbély-P., Tibor Bors, Ph.D. Senior Adviser, National Labour Office, Hungary Riga, 22nd May, 2014 (2nd training day)

Part I. Statistical portrait on pre-retirement age (55-62) group employment, unemployment in Hungary – different target groups

How is old? What is the definition of „senior workforce”?

Eurobarometer (2011) Active ageing report

Older workers in Western-Europe

Typology of different types of skill obsolescence Technical skills obsolescence: - wear of skills due to ageing, injuries or illness; - atrophy of skills because of insufficient use; Economic skills obsolescence - job specific skills obsolescence as a consequence of technological or organisational renewal of the production process; - obsolescence due to shifts in the sectoral structure of employment; - firm-specific obsolescence due to firm closure or reorganisation; Organisational forgetting due to quits of workers with firm specific skills. De Grip and van Loo (2002)

Older workforce in Hungary

Clients of the PES: allowances Job-seekers benefit for pre-retirement age group Based on the Employment Act (1991. IV.) registered at the local PES office; ready for job (!); in the register at least 45 days; not entitled for (regular) job-seekers’ allowance (max. duration 3 monthly currently) Amount: 40% of the minimal wage (2013: HUF monthly (~EUR 130), HUF 1307 (1 EUR 4,3) daily

Clients of other national agencies : allowances (2) – rehabilitation -since 2011 a new rehabilitation act came into force - a new national institute set up for rehabilitation and social -rehabilitation system & pensions have been reconsidered - rehabilitation pensioners more than 5 years away from retiring age have been sending back the labour market -Rehabilitation allowance 30-50% of the minimal wage HUF 29, ; (~ EUR )

Employment rates in EU-27, Hungary Source: LFS, Eurostat Q Q2 EU27Hungary Difference EU27Hungary Difference (EU-27- Hungary) % %-point % years64,357,27,164,555,88, years32,817,815,033,518,115, years77,774,92,878,373,84, years48,937,211,747,535,512, years Pre-primary, primary and lower secondary education 43,926,717,245,425,919,5 Upper secondary and post- secondary non-tertiary education 68,562,56,068,961,07,9 Tertiary education 82,178,73,482,478,93,5

Average exit age from the labour force in some EU countries (2007, 2010) Eurostat

Changes in employment by gender and age (2011/2012) HCSO,2012

Registered job-seekers by age groups PES data, 2012

Part II. Hungarian Practices for integration of pre-retirement age group

55+ registered main findings Most of the registered 55+ are in the developed counties 39% (2012) of them are long-term registered

Activating PES 55+ registered jobseekers (PES data, 2012)

Thank you for your attention

Some issues for discussion Real exit age from the LM vs. EU 2020 goals (20-64 full empl. (75%) by 2020) digital skills for future above 55 (not only for work) Low mobility at certain age Intergenerational cooperation at workplaces Older workers benefit/wage protection vs. open LM