Extending the work life

Tallinn/ Juhani Ilmarinen 091008/FIOH /

Extending the work lifeProf. Juhani Ilmarinen, FIOH, HelsinkiTallinn Workshop, September 9-10, 2008


Why should we work longer?

•Work life must be extended for the sake of the whole society

•Can we afford growing older?•Higher employment rates and lower dependency ratios are the base for our older society


Challenges of Employment rates of 55-64-years oldInternational view


Employment rate %, 2005

40,4

42,3

42,5

44,1

60,8

63,9

65

65,5

84,3

0 10 20 30 40 50 60 70 80 90

Euro area

EU 27

EU 25

EU 15

USA

Japan

Switzerland

Norway

Iceland


Percent increase in employment by age and sex1977-2007( U.S. Bureau of Labour Statistics 2007)

• Age 16 and over 59 %• Age 65 and over 101

• Men 65+ 75• Women 65+ 147

• Age 65-69 85• Age 70-74 98• Age 75 and over 172


Projected percentage change in labour force age, 2006-2016(U.S. Bureau of Statistics, 2007)

• 75 and older 84,3 %• 65 to 74 83,4• 55 to 64 36,5• 25 to 54 2,4• 16 to 24 - 6,9


Employment rate %, women 2005

31,5

33,5

33,7

35,4

49,4

55,1

55,4

60,1

79,6

0 10 20 30 40 50 60 70 80 90

Euro area

EU 27

EU 25

EU 15

Japan

USA

Switzerland

Norway

Iceland


Top 10 occupations for women 55+(U.S, Department of Labour, 2005)

• secretaries, administrative assistants

• school teachers• reg. nurses• bookkeeping,

accounting, auditing clerks

• nurses, home health aides

• cashiers• maids, cleaners• first-line

supervisors/managers of retail sales

• managers• first-line

supervisors/managers of office and administration


Change in employment rates of 55-64-years 1997-2006, EU-15

62,6

51,7

48,3

35,6

40,4

48,5

38,1

32

36,4

34,1

41

29

28,3

23,9

27,9

22,1

69,6

60,7

57,4

54,5

53,1

50,1

48,4

47,7

45,3

44,1

42,3

37,6

35,5

33,2

32,5

32

7

9

9,1

18,9

12,7

1,6

10,3

15,7

8,9

10

1,3

8,6

7,2

9,3

4,6

9,9

Ruotsi

Tanska

Iso-Britannia

Suomi

Irlanti

Portugali

Saksa

Alankomaat

EU-15

Espanja

Kreikka

Ranska

Itävalta

Luxemburg

Italia

Belgia

0 20 40 60

1997

2006

Muutos 2006-1997

Lähde: Työvoimatutkimukset EU-maissa


Employment rates of 60-67-years old from 2003 – 2006 in Finland

0,0

10,0

20,0

30,0

40,0

50,0

60,0

60 61 62 63 64 65 66 67

2003

2004

2005

2006

Source: Center of Statistics, Finland


How long are we able to work?


5

10

15

20

25

30

35

40

45

50

Average Work Ability Index by age


Cut point of work ability line and WAI-score of 27 points ( poor work ability ) – scientific guess

• Cut point will be about 80 years!• After the age of 80 years, the average value of

work ability index will be below 27 points, and indicated as poor

• Indivividual differences, however, are large – a smaller population would be able to work, if they wish to do so

• Older persons are active in 3rd sector and show a good ability to carry out no-paid tasks


37 38 39 40 41 42

Farming

Wood industry

Metal industry

Transport

Social services

Building industry

Civil service

Other industry

Other services

Trade

Education

Health services

Electronics industry

Telecommunication

Financing, insurance

Average Work Ability Index by industrial branch. Adjusted bygender and age, (n=3704)


0 % 10 % 20 % 30 % 40 % 50 % 60 % 70 % 80 % 90 % 100 %

Farming

Wood industry

Electronics industry

Metal industry

Building industry

Other industry

Trade

Transport

Telecommunication

Financing, insurance

Education

Health services

Social services

Civil service

Other services

Poor

Moderate

Good

Excellent

Work Ability Index classes by industrial branch, (n=3704)


5

10

15

20

25

30

35

40

45

50

15 25 35 45 55 65

Carrot project 1998, N=729

49

43

36

27

7

exellent

good

moderate

poor

Age, yrs

Work ability index (WAI)

WAI ClassWAI

Individual differences of work ability by age in SMEs


Excellent and good work ability later in life: scientific guess

• 55 years 60 %• 65 years 40 %• 75 years 20 %


Are women able to work longer because they live longer than men?


Work ability index (7-49) among working men and women by older age groupsGould and Polvinen, 2006

33

34

35

36

37

38

39

40

50-54 55-59 60-64

men

women


Age Management as a concept to extend the working life


PROBLEMS / POSSIBILITIES MEANS / SOLUTIONS RESULTS / AIMS

- functional capacity- health- competence- work motivation- work abilitywork exhaustion- unemployment

INDIVIDUAL

- productivity- competitiveness- sickness absence- tolerance for change- work organization- work environment- recruitment

- attitudes toward work and retirement- age- discrimination- early retirement- work disability costs- retirement costs- health care costs- dependency ratios

ENTERPRISE

SOCIETY

- promotion of physical, mental and social resources- improving health- developing competence- coping with changes- participating

- individual solutions- co-operation between age groups- age- ergonomics- work-rest schedules- flexible working times- part-time work- tailored competence -training

- age-management

- changing attitudes- preventing age-discrimination- improving age-concious work policy- changing age-concious exit policy

- better functional capacities- better health- better competence- better work ability- less exhaustion- lower unemployment risk- better quality of life

- better total productivity- better competitiveness- less sick leaves- better management- competent manpower- better image- lower work disability costs

- less age-discrimination- later retirement - lower unemployment costs- lower health care costs- better national economy- higher wellfare

- age management

- age-management

LEVELS OF AGE MANAGEMENT


Work AbilityWork Ability

ValuesAttitudes Motivation

CompetenceKnowledge Skills

HealthFunctional Capacities

Work

Family

Society

Relatives,friends

Environment Content and DemandsCommunity and Organisation Management and Leadership


Promotion of work ability: integration of actions- modified by Dr. Richenhagen

20

25

30

35

40

45

50

40 45 50 55 60 65

Alter (Jahre)

sehr gut

gut

mäßig

schlecht

Individuelle Gesund-heitsförderung, Ergo-nomische Maßnahmen,verbessertesFührungsverhalten

Nur individuelleGesundheits-förderung

Keine Maßnahmen

Arbeitsfähigkeit(ABI)


Age Management Training for Supervisors by sector (employer interview)

11

19 1915

29

36

20

3330

0

20

40

1998 2001 2004%

Private Municipal State

Work Ability Barometer 2004 / FIOH


Value of work experience?Are there jobs where experience is needed?


Value of work experience of older workers by sector (employers)

Work ability Barometer 2004 / FIOH

37

61

2

34

59

6

29

59

10

0 10 20 30 40 50 60 70

High

Moderate

Low or nothing

%Private (n = 575)Municipal (n = 211)State (n=57)


Proportion of tasks where work experience of older workers is needed by sector (employers)

9

72

18

14

63

22

9

49

41

0 20 40 60 80

High

Moderate

Low or not at all

%

Private (n = 575)Municipal (n = 211)State (n = 57)

Work Ability Barometer 2004 / FIOH


Older workers braking the old myths


Myths About Older workers

• Older workers can´t or won´t learn new skills

• Older workers don´t stay on the job long

• Older workers take more sick days than younger workers

• 50+ becoming the fastest growing group of Internet users and learners

• 45-54 stayed in the job twice as long as those 25-34

• Attendance records are better for older than younger workers


Myths About Older Workers

• Older workers are´t flexible or adaptable

• Older workers are more expensive

• Older workers like to question the change; they accept the change when the rationale is explained

• The costs are outweighted by low turnover decreasing the cost of recruiting, hiring, and training


Job Search Tips for Older Workers

• Emphasize your experience• Network• Make age an asset• Consider a career change• Get help

• Keep your skills current• Don´t give up


Make Age an Asset

• Don´t use age as crutch• Anticipate stereotypes and prepare to

counter them• Get tech savvy• Focus on experience, not age• Avoid using all dates• Consider consulting and small

businesses


Older sportsmen braking the myths of ageing


Outdoor 10000 m (World and Finnish Records 2006)

20

30

40

50

60

70

80

90

35 40 45 50 55 60 65 70 75 80 85 90 95 100

Age

Tim

e in

mu

nu

tes

and

sec

on

ds

Men Women Men (SF) Women (SF)


Outdoor High Jump (World and Finnish Records 2006)

0,7

0,9

1,1

1,3

1,5

1,7

1,9

2,1

2,3

35 40 45 50 55 60 65 70 75 80 85 90 95 100

Age

Len

gth



Outdoor Shot Put (World and Finnish Records 2006)

0

5

10

15

20

25

35 40 45 50 55 60 65 70 75 80 85 90 95 100

Age

Len

gth



World records in working ?

• Individual differences of older people are so large that a growing proposion of them can work very long - if they wish to do so and if employer needs their experiences

• Abolishment of upper limit to work will increase the number of people working very long

• Entrepeneurs, artists, scientists and politicians are already today examples of longer work careers

• Human recourses matter, not the age

• Basic question: What is the meaning of life?• We only live twice...


Extending the working life – policy needs


Extending the worklife: several actions are urgently needed

Comprehensive policy reforms and enterprise practices are necessary in the following areas:

• Attitudes reform towards ageing• Management and Leadership reform• Work life reform towards age-friendly worklife• Pension reform for flexible retirement• Health and social care reforms• Co-operation reform between key actors• Implementation of Age Management Best-Practices


Accepting human ageing

•Everyone should have the right to get older at work!

•Working must be adjusted according to ageing processes, not the opposite!

Documents

Extending the work life