Employment of older workers worldwide
How are senior workers faring worldwide? Which countries have implemented best practices, and which ones could use them as role models? Is it better to be over 55 years of age and economically active in Germany, Australia or Japan? An overview of best practices in five countries affected by the aging population.
- Japan: getting older but adapting
=> Employment rate for 55-64-year-olds: 66,3%
In Japan, the aging population is already a reality, with people over 65 representing over 21% of the population, and over a million workers reaching retirement age in the next few years. The government has reacted in time, though, by implementing à la carte retirements and eventually aiming for a system without age limits. To prevent discrimination, companies are required to create schedules for older workers, and if laid off, support them in finding new work. Workplace integration has been the focus of active policies since the 1970s, with placement centres offering part-time jobs to workers older than 60, support for self-employment and individualized assistance for former managers. Results are convincing: the employment rate for 55–64-year-olds is at 66.3%, or very close to the employment rate for the total population (70.7%) and higher than that for 15–24-year-olds (41.3%).
=> Employment rate for 55-64-year-olds: 62%
In the US, the issue of older workers has become a major concern for the government. The employment rate for 55-64-year-olds is quite high (62%), but has progressed very little (+7% between 2000 and 2008). Older workers appear to be the victims of hiring discrimination. Another problem raised is that young 25-34-year-old men who work seasonally or part time compete for the same low-paying jobs as seniors. Faced with the difficulty of finding a job, many seniors instead opt for early retirement.
In order to solve the problem, the government has started reforming the retirement system and promoting the benefits of hiring experienced workers. It has also made it illegal to specify age limits in job ads, a practice that has remained common.
=> Employment rate for 55-64-year-olds: 57.5%
The employment situation of older Canadians has greatly improved over the past few years. According to Statistics Canada, the employment rate of people over 65 increased from 12% to 15% for men and 4% to 6% for women, while it was trending down during the 1980s and 1990s. The improvement is notable for 55–64-year-olds, with their employment rate jumping 20% between 2000 and 2008. OECD underscores that work remains to be done, however, since Canadians are continuing to retire early, while many older people would have preferred to continue working if public policies and work practices were more favourable. It recommends extending the possibilities of combining a pension and employment income, assessing the prevalence of age discrimination, promoting best practices in the workplace and reinforcing employment services for older unemployed workers.
- Australia: committed companies
=> Employment rate for 55-64-year-olds: 57%
Sixty-two percent of Australians want to continue working after retirement, and 24% of those currently working do not expect to retire until age 70. National companies are adapting to this new reality, with 21% having implemented specific strategies for recruiting and retaining workers over 55. Their managers are trained on the particularities of older employees, and anti-discrimination initiatives are launched regularly. As in Japan, older workers have a lower unemployment rate of 3% for those over 55, vs. 5% for the economically active population overall. The over-60 segment is the only age group whose employment rate increased between 2008 and 2009.
=> Employment rate for 55-64-year-olds: 54%
In eight years, the employment rate for 55-64-year-olds has increased by close to 43% in Germany. It is currently at 54%, vs. barely 40% in Germany’s neighbours including France, Poland and Belgium. The job outlook for older workers is more favourable than for younger ones, because experienced people are considered by employers as being a more profitable investment. Many German companies are adjusting work schedules to the requirements of older workers, sparing them from having to work nights, and providing them with further training. In some companies, such as KSB or Fahrion, a third of employees are over 50. According to OECD, however, many Germans stop working well before the legal requirement age and therefore recommends maintaining an active policy.