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PES Strategies in Support of an Ageing Workforce European Network of Public Employment Services PES Strategies in Support of an Ageing Workforce Study report Written by ICON Institute Public Sector GmbH Hugh Mosley and Knuth Dohse November – 2019 Social Europe PES Strategies in Support of an Ageing Workforce: Study report EUROPEAN COMMISSION Directorate-General for Employment, Social Affairs and Inclusion Directorate B — Employment Unit B.1 — Employment Strategy Contact: Hilde Olsen E-mail: [email protected] European Commission B-1049 Brussels EUROPEAN COMMISSION PES Strategies in Support of an Ageing Workforce Study report European Commission Directorate-General for Employment Social Affairs and Inclusion Directorate B — Employment PES Strategies in Support of an Ageing Workforce: Study report LEGAL NOTICE Manuscript completed in November 2019 Neither the European Commission nor any person acting on behalf of the European Commission is responsible for the use that might be made of the following information. More information on the European Union is available on the Internet (http://www.europa.eu). Luxembourg: Publications Office of the European Union, 2019 PDF ISBN:978-92-76-08562-1 doi: 10.2767/535792 KE-02-19-469-EN-N © European Union, 2019 Reuse is authorised provided the source is acknowledged. The reuse policy of European Commission documents is regulated by Decision 2011/833/EU (OJ L 330, 14.12.2011, p. 39). For any use or reproduction of photos or other material that is not under the EU copyright, permission must be sought directly from the copyright holders. The European Network of Public Employment Services was created following a Decision of the European Parliament and Council in June 20141. Its objective is to reinforce PES capacity, effectiveness and efficiency. This activity has been developed within the work programme of the European PES Network. For further information: http://ec.europa.eu/social/PESNetwork. This publication has received financial support from the European Union Programme for Employment and Social Innovation ‘EaSI’ (2014-2020). For further information please consult: http://ec.europa.eu/social/easi. 1 DECISION No 573/2014/EU 4 2019 PES Strategies in Support of an Ageing Workforce: Study report Table of contents Executive summary ............................................................................................... 7 The demographic challenge .................................................................................... 7 Consequences and challenges for the PES................................................................. 7 1. Introduction: the demographic challenge and policy responses in the EU .............. 10 1.1. The shifting age paradigm of employment policy ................................................ 11 1.2. The Europe 2020 strategy ............................................................................... 12 2. Consequences and challenges for older workers ................................................. 19 2.1. Older workers in the labour market .................................................................. 19 3. Consequences and challenges for employers ..................................................... 22 3.1. The social dynamics of employment and the older workforce ............................... 22 3.2. The learning organisation and the older workforce ............................................. 24 3.3. Learning enhancement through professionalisation and focus networks ................ 26 3.4. Typology of company measures and company situations ..................................... 28 3.5. Hiring Older Employees .................................................................................. 31 3.6. Summary ...................................................................................................... 33 4. Consequences and challenges for the PES ......................................................... 35 4.1. Consequences for the PES clientele .................................................................. 35 4.2. What reservations do employers have about retaining or hiring older workers? ...... 36 4.3. How do PES policies address these needs and concerns? ..................................... 38 4.4. What motivates older workers to remain in or seek employment? ........................ 42 5. PES services and measures for older jobseekers ................................................ 44 5.1. Wage subsidies .............................................................................................. 44 5.2. Wage supplements ......................................................................................... 47 5.3. Special placement services for older workers ..................................................... 48 5.4. Training for the unemployed ............................................................................ 51 5.5. Labour regulations and employment protection .................................................. 52 6. Proactive workplace policies for employed workers ............................................. 54 6.1. Awareness and age management ..................................................................... 55 6.2. Continuing training and career guidance ........................................................... 56 7. PES strategies in support of older workers in five EU PES .................................... 58 7.1. PES services and measures for unemployed older workers .................................. 58 7.2. PES preventive measures for employed workers ................................................ 60 7.3. Monitoring and evaluation ............................................................................... 61 7.4. Identification of MS or PES for possible further analysis ...................................... 62 Synopsis 1: PES services and measures for unemployed older workers ....................... 65 Synopsis 2: Preventive measures and monitoring and evaluation ............................... 67 8. Conclusions: the consequences and challenges of an ageing workforce ................. 69 Bibliography ........................................................................................................ 73 Annex 1: Additional tables and figures .................................................................... 79 5 2019 PES Strategies in Support of an Ageing Workforce: Study report List of Tables Table 1.1. Employment rates aged 55-64, change 2010-2018 and gender gap .............15 Table 1.2. Employment rates aged 55-64 by gender and educational attainment ..........16 Table 1.3. Employment change, old age ratios in EU-28, 2018 and 2008 .....................18 Table 2.1. Late career labour markets for older workers, 2006 and 2016 .....................19 Table 3.1. Challenges and measures .......................................................................29 Table 4.1. Placement challenges of older jobseekers .................................................38 Table 4.2. Share of older jobseekers aged 55+ in PES clientele and in ALMP, 2017 .......39 Table 4.3. PES and related interventions by type of employment impediment ..............41 Table 4.4. Determinants of older workers’ retirement decisions ..................................42 Table 5.1. Wage subsidies and targeted reductions in social security contributions .......46 Table 5.2. Wage supplements for unemployed benefit recipients ................................48 Table 5.3. Special placement services, staff training & outreach .................................50 Table 5.4. Training for older unemployed .................................................................52 Table 5.5. Regulatory exceptions and reforms ..........................................................53 Table 6.1. Proactive outreach: awareness and age management counselling ................54 Table 6.2. Proactive outreach: continuing training and career guidance .......................56 Table 7.1. Older jobseekers in ALMP, and % of all jobseekers ....................................59 Table 7.2. Distribution of older jobseekers in ALMP by type ........................................59 Table 7.3. Employment rates of older workers, 55-64 ...............................................64 List of Figures Figure 1.1. Old age dependency ratio ......................................................................10 Figure 1.2. Employment as a % of 2008 level ..........................................................11 Figure 1.3. Employment rates by age groups, 2003 and 2017 ....................................14 Figure 1.4. Economic sectors EU-28 by employment change and old age ratio .............17 Figure 2.1. Hiring rates and retention rates for older workers aged 55-64 ....................21 6 2019 PES Strategies in Support of an Ageing Workforce: Study report Executive summary The demographic challenge Population ageing currently confronts European welfare states and the European economy with unprecedented challenges. In response to demographic ageing there has been, over the past 20 years, a paradigm shift in employment policies towards promoting increased labour force participation by older workers, women, low-skilled workers and migrants. Public policy in regard to older workers has moved from an emphasis on early retirement as an instrument of labour force adjustment, towards the promotion of higher rates of labour force participation and longer working lives for older workers. The main elements of the reforms have been a variety of changes in old age and disability
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