Call for EU-wide strategies aimed at older workers

A Communication published by the Commission in March 2004 outlines key conditions for promoting employment among older workers and delaying their exit from the labour force. The aim is to encourage the development and implementation of comprehensive, long-term ageing policies in all EU Member States.

In the light of the ageing and future shrinking of the working age population, there is a need to increase the participation and employment rates of older workers. This has been the subject of considerable attention in a number of recent EU policy documents, such as a specific Commission staff working paper (pdf file), the Joint Employment Report 2004 (pdf file), the Employment in Europe 2003 report (pdf file), and the report of the Employment Taskforce. The report from the Commission to the 2004 Spring European Council (Delivering Lisbon) has identified active ageing as one of the three priorities for achieving the employment targets of the Lisbon strategy.

The Commission Communication, Increasing the employment of older workers and delaying exit from the labour market (pdf file), emphasises the significance of quality of work in terms of improved employment rates and job retention among older workers. The basic premise of the document is that a long-term policy perspective covering all age groups across the lifecycle guarantees high employment and participation rates in the long run.

Key dimensions of quality of work (EU0402NU03), particularly health and safety, training, and work organisation, are fundamental to formulating comprehensive strategies on active ageing. Research shows that the withdrawal from the labour market of older workers in low quality jobs is up to four times greater than that of older workers in higher quality jobs.

Target figures

The Stockholm and Barcelona targets are complementary. The first aims at increasing by 50% the employment rates of people aged 55 to 64 by 2010. The target is monitored by the employment rate and can be achieved by reductions in both unemployment and inactivity rates. The Barcelona target seeks to delay by five years the age at which workers withdraw from the labour force into inactivity. This is monitored by changes in the activity rate.

Despite recent improvements, the EU still falls far short of both the Stockholm and the Barcelona targets.

The employment rates for older workers vary considerably according to gender. In the EU 15, the employment rate of women aged 55-64 increased from 24% in 1992 to 30.5% in 2002; for men, the rate increased from 49.4% to 50.1%. In the former acceding and candidate countries, the female employment rate declined from 22.1% in 1997 to 21.4% in 2002, while the male employment rate fell from 42.9% to 41.2%.

In the EU 15, employment of older workers accounts for as much as 80% of the total employment increase in 2002. Between 1997 and 2002, 36% of the employment creation for older workers resulted from an increase in part-time work. In 2002, the number of workers aged 50 years who became self-employed grew by around 3%, compared with a figure of less than 0.3% for prime age workers.

The average exit age from the labour force increased slightly but is still far from the target of around 65 years. In the EU 15, the exit age rose from 60.4 years in 2001 to 60.8 in 2002. In the former acceding countries, the figures are 57.8 years for 2001 and 58.2 for 2002.

Working conditions and job retention

Many older workers leave their job due to a long-term illness or disability.

The Employment Guidelines 2003 (pdf file) emphasise the need to foster working conditions conducive to job retention and to recognise the special importance of health and safety at work, and innovative and flexible forms of work organisation. Due consideration should be given to the fact that work-related health problems tend to increase with age.

Education and training can influence the employment levels of older workers. There is a strong correlation between employment rates and skill levels, as Table 2 shows.