Active Ageing - Baseline Study

Dr Valerie Egdell Prof Ronald McQuaid, Vanesa Fuertes and Dr Emma Hollywood

Employment Research Institute Edinburgh Napier University

www.napier.ac.uk/eri

Paul GuestConsultant in European Project Management

With the support of

Funded by

Introduction

Baseline study – to provide information on the current situation and

actions regarding older people’s labour market participation in

Edinburgh, and identify any existing gaps in knowledge

Inform a future pilot social experimentation study

Structure of the presentation: demographic changes policy background in Europe, UK and Scotland existing research on the experiences of older workers current actions in Edinburgh limitations of current actions/policy and priorities to be met

Population aged 50+ and 50 to SPA as a percentage of all population aged 16+

Source: Annual Population Survey Oct 2008-Sep 2009 [from Nomis on 5 August 2010]

0

5

10

15

20

25

30

35

40

45

50

Edinburgh Scotland

% of all 16+ who areaged 50+

% of all 16+ who areaged 50-retirementage

Impact of Demographic Trends

Debate on the best way to sustain older workers in employment for

longer and to increase recruitment of older people

Many older workers desire to continue working beyond the normal

retirement age if they feel able to (McNair et al. 2004, Smeaton et al.

2009). However not all want to do so

Rates of employment have fallen less for those aged 50+ than for

other age groups during the recession (Jenkins and Leaker, 2010)

BUT once older workers are made redundant they face far greater

difficulties re-joining the labour market than any other age group

(Hogarth et al. 2009)

Policy Context - Europe

Target set by the European Council of Stockholm in 2001 to achieve

an employment rate of 50% of those aged 55-64 years in 2010

The European Commission strategy is to maximise an individual’s

capacity to participate over their life

EU Council Directive 2000/78/EC5 established a general framework

for equal treatment in employment and occupation

Employment Framework Directive (2000) outlawed age discrimination

- employment, training and membership of organisations

Policy Context - UK

Finance Act (2004) - employees can claim their occupational pension

in full or in part without first having to leave their employment

New coalition government will bring forward to 2016 the increase in

the state pension age and plans to phase out the default retirement

age from April 2011

Employment Equality (Age) Regulations (2006) - made age

discrimination in employment unlawful

The opportunity to access flexible working arrangements

Active labour market initiatives

Policy Context – Scotland

UK equality legislation applies in Scotland

Policies in place at the Scottish level brought together under the ‘All

Our Futures: Planning for Scotland with an ageing population’

strategy. One of the six sub-strategies is to improve and increase

older people’s participation in the labour market

Other initiatives that could be of benefit to older people include: Workforce Plus - encouraging employers to recruit from a labour market pool that

includes people who may not have been considered previously Training for Work - help people improve their work related skills through the

provision of appropriate training and structured work activity in line with assessed needs

BUT both are being replaced next year following the change in government

Employment rate in 2009 for age groups: working age and over 50 and below SPA

70

71

72

73

74

75

76

Edinburgh Scotland England

Employment rate -working age

Employment rate -50-retirement age

Source: Annual Population Survey Oct 2008-Sep 2009 [from Nomis on 5 August 2010]

Employment of older workers

Research highlights a lack of awareness of demographic trends, the

age discrimination regulations, lack of strategic approaches to the

employment of older workers and lack of policies to do with age

(Flynn 2010, Loretto 2010, McQuaid et al. 2008, McNair et al. 2007,

Hollywood et al. 2007, Loretto and White 2006a, Metcalf and

Meadows 2006)

Employers still have concerns about older workers but cases studies

have shown how stereotypes are unfounded (EHRC & TAEN 2009).

Positive attitudes do not necessarily translate into good practice

Practice towards, and the barriers faced, by older workers as arising

from interactions at various levels (Loretto and White 2006b, Loretto

and White 2006c)

Age Management

“those measures that combat age barriers and/or promote age

diversity” (Naegele and Walker 2006: 1-2)

Examples of good practice

Age management encompass 8 dimensions: Job recruitment Learning, training and lifelong learning Career development Flexible working time practices Health protection and promotion, and workplace design Redeployment Employment exit and the transition to retirement Comprehensive approaches

Number of factors can impact the age management approach taken

(Flynn 2010, Barnes et al. 2009, McNair et al. 2007, Loretto and White

2006a, Walker and Taylor 1999)

Current Actions - Edinburgh

Organisations working with employers to help them to adopt good

practice in terms of corporate social responsibility e.g. Scottish

Business in the Community, Scotland’s Got Talent, Edinburgh

Chamber of Commerce, Business Gateway, Scottish Government

Organisations also working with older workers and employers e.g. A

City for All Ages, Edinburgh Chamber of Commerce, strategic

development groups, consultative forums and events on issues

around active ageing

Limitations and priorities

Limitations of current actions and policy Inability to reflect older people’s needs Inability to reflect employers’ requirements and pressures Difficult to assess the workshops and guidance or information on age management

Priorities General attitudes and opportunities Access to work and training Legislation Employers’ practices

Next stages

Stakeholder interviews

Opinion of 50+ not in and looking for paid employment

Small scale social experimentation pilot with employers

References

Barnes, H., Smeaton, D. and Taylor, R. (2009), An Ageing Workforce: The Employer’s Perspective. Report 468 (Institute For Employment Studies)

EHRC & TAEN (2009) Age Diversity in the Downturn: Business Benefits of Creative Approaches to Age Management. London: Organised by TAEN for the Equality and Human Rights

Commission

Flynn, M. (2010) “The United Kingdom government's ‘business case’ approach to the regulation of retirement”, Ageing and Society, 30: 421-443.

Hogarth, T., Owen, D., Gambin, L., Hasluck, C., Lyonette, C. and Casey, B. (2009), The Equality Impacts of the current recession. Research report 47. (Equality and Human Rights

Commission)

Hollywood, E., Brown, R., Danson, M. and McQuaid, R.W. (2007) “Demographic and Labour Market Change: The Dynamics of Older Workers in the Scottish Labour Market”, Scottish

Geographical Journal, Vol. 123; No. 4, 242-256

Jenkins, J. and Leaker, D. (2010) The labour market across the UK in the current recession. Economic and Labour Market Review, 4 (1): 38-48

Loretto, W. (2010) Work and retirement in an ageing world: the case of older workers in the UK. Journal of the Academy of Social Sciences, Vol. 5, No. 3, pp. 279 – 294. 

Loretto, W. and White, P. (2006a) “Population Ageing and Older Workers: Employers’ Perceptions, Attitudes and Policies”, Population, Space and Place 12, 341-352.

Loretto, W. and White, P. (2006b) “Employers' Attitudes, Practices and Policies Towards Older Workers”, Human Resources Management Journal, vol. 16, no. 3, pp. 313-330

Loretto, W. and White, P. (2006c) “Work, More Work and Retirement: Older Workers' Perspectives”, Social Policy and Society, 5: 495-506

McNair, S., Flynn, M. and Dutton, N. (2007) Employer responses to an ageing workforce: a qualitative study. Research Report No 455. (Department for Work and Pensions)

McNair, S., Flynn, M., Owen, L., Humphreys, C. and Woodfield S. (2004) Changing Work in Later-life: a study of job transitions. (CROW)

McQuaid, R.W., Brown, R. and Newlands, D. (2008) “Demographic Change and Economic Challenge: What Future for Scotland and other Small Countries?” Scottish Affairs, No. 64, pp.

3-17

Metcalf, H. and Meadows, P. (2006), Survey of Employers’ policies, practices and preferences relating to age. (DWP Research Report 325, DTI employment relations research series

number 49)

Naegele, G. and Walker, A. (2006) A guide to good practice in age management. European Foundation for the Improvement of Living and Working Conditions, Luxembourg: Office for

Official Publications of the European Communities

Royal Society of Edinburgh Research Workshop (2009). The Employability of Older People. Edinburgh Napier University, 01 July 2009,

http://www.napier.ac.uk/randkt/rktcentres/eri/events/pastevents/Pages/ERIWorkshop.aspx

Smeaton, D., Vegeris, S. and Sahin-Dikmen, M. (2009) Older workers employment preferences, barriers and solutions (Equality and Human Rights Commission)

Walker, A. and Taylor, P. (1999) “Good practice in the employment of older workers in Europe”, Ageing International, 25 (3): 62-79