1. Working at Later Life – Current Situation and Need
for Reform
Eric Thode
Gütersloh, 7 February 2012

2. Working at Later Life
The case for improving employment prospects of older
workers
 Increasing longevity and health enables people to extend their labour market
participation
 Shrinking and aging of the work force together with increasing share of retirees
put social security under pressure
People are able to and have to work longer (earlier entry, more hours worked or
retire later)
2 common perceptions:
 No jobs available for older workers
 Improving employment for older workers dampens prospects for the youth
7. Februar 2012 Seite 2

3. Working at Later Life
Employment rate of 60- to 64-year-olds, 2010 and change
in percentage points from 2001
70
2010 Change from 2001 to 2010
60
Lisbon target for 55- to 64-year-olds
50
40
30
20
10
0
SE UK EE CY DE FI IE PT DK NL LT ES EU27 EL RO LV BG CZ AT IT BE LU SI PL FR SK MT HU
-10
-20
Source: Eurostat Internet Database, 2012.
7. Februar 2012 Seite 3

4. Working at Later Life
Regular Employment of 60- to 64-year-olds in Germany,
1999 – 2011
1,400,000
Source: Destatis, 2012. Extension to 24
months for 58+
1,200,000
Announcing reduction of
benefit duration (from 32 Reduction becomes
to 18 months for 57+) effective
1,000,000
800,000
600,000
400,000
200,000
0
Jun
Mrz
Jun
Mrz
Jun
Mrz
Jun
Mrz
Jun
Mrz
Jun
Mrz
Jun
Mrz
Jun
Mrz
Jun
Mrz
Jun
Mrz
Jun
Mrz
Jun
Mrz
Dez
Dez
Dez
Dez
Dez
Dez
Dez
Dez
Dez
Dez
Dez
Dez
Sep
Sep
Sep
Sep
Sep
Sep
Sep
Sep
Sep
Sep
Sep
Sep
7. Februar 2012 Seite 4

5. Working at Later Life
Youth employment (25-29 ys) vs. elderly employment (60-
64 ys), 2007 and 2010
70 70
Employment rate of 60- to 64-year-olds, per cent
Employment rate of 60- to 64-year-olds, per cent
2007 2010
60 SE 60 SE
50 50
IE UK UK
PT LV CY EE DE
DK PT CY
40 40 IE
EE
DE FI LT ES DK FI
LT EU27
NL
EL ES EL
30 RO NL 30 RO
CZ EU27 LV CZ
BG AT
BG AT 20 SI BE
20 IT
SK FR BE SK PL
LU
PL SI
HU FR
10 LU 10 MT
HU MT
y = 0.901x - 40.25 y = 0.318x + 7.063
R² = 0.122 R² = 0.026
0 0
60 65 70 75 80 85 90 60 65 70 75 80 85 90
Employment rate of 25- to 29-year-olds, per cent Employment rate of 25- to 29-year-olds, per cent
Source: Eurostat Internet Database, 2012.
7. Februar 2012 Seite 6

6. Working at Later Life
Employment rate of 60- to 64-year-olds by educational
attainment, 2009
80.0
70.0
ISCED 0-2 ISCED 3-4 ISCED 5-6
60.0
50.0
40.0
30.0
20.0
10.0
0.0
HU CZ BE FR PL IT AT LT SI BG EU-27 LV DE DK NL ES EL FI UK IE RO PT CY SE
Source: Eurostat Internet Database, 2012.
7. Februar 2012 Seite 7

7. Working at Later Life
Ratio of participation in continuous training between 35-
to 54-year-olds and 55- to 64-year-olds, 2007
4
Source: EU Adult Education Survey Database, 2011.
3.5
3
2.5
2
1.5
1
0.5
0
HU PL EL RO PT FR MT CY SK CZ BG IT SI LT ES BE AT DE DK LV NL FI EE UK SE
7. Februar 2012 Seite 8

8. Working at Later Life
Conclusions
 Institutions matter, esp. early retirement in various forms
 abolish early retirement
 Employment problems are concentrated on lower-skilled older workers
 improve skills and knowledge
 Continuous training is focused on higher-skilled and younger members of the
work force
 overcome St. Matthew‘s principle „For unto every one that hath shall be given”
 Growing importance of general human capital vis-à-vis firm-specific human
capital
 increase public activities for providing continuous training
 Special case of hazardous, arduous or stressful work
support companies in improving flexible work organisation for better relocation
possiblities
7. Februar 2012 Seite 9