Worklife cycle and employment

A worklife cycle approach aims at extending working life and addresses measures to increase labour market participation for both younger and also older workers.

Context

Demographic change and the worklife cycle are on the agenda of EU policies. The European Commission’s Green Paper Confronting demographic change: A new solidarity between the generations (309Kb pdf) and the report (555Kb pdf) by the High Level Group on the Future of Social Policy in an Enlarged Europe examine the worklife cycle. Extending working life refers to both labour market entry and exit, as it aims at reversing the trend of older workers leaving the labour market earlier and of young people entering the labour market later.

Measures dealing with demographic change are integral to the Lisbon Agenda, and encourage new forms of solidarity between the generations, based on mutual support and the transfer of skills and experiences.

Demographic change and working age population

EU policies are challenged by a decline in the working age population (15-64 years) by 20.8 million between 2005 and 2030. A considerable increase in the group of workers aged 55 years and over will be accompanied by a significant decrease in the number of workers aged 25-39 years.

The activity rate of prime-aged men remained almost stable, at 95-96% in 2000, compared with 97-98% in 1970, whereas the participation of women of prime age increased from around 50% to almost 80%.

Better integration of young people

Data reveal a higher level of education and training, compared with older groups. In 2003, in the EU15, almost 28% of 25-34 year olds, compared with 16% of 55-64 year olds, had been educated to degree level.

However, young people are facing barriers to employment:

• In December 2004, 17.9% of under 25 year olds, compared with 7.7% of those aged 25 or over, were unemployed.

• Young people encounter discrimination on the grounds of their age and lack of occupational experience.

• A discrepancy between skills learnt at school and the requirements of the knowledge society, as well as the high level of school failure - with 16.5% of 18-24 year olds leaving school without qualification - are a source of concern.

In line with the Commission’s Strategic Objectives for 2005-2009, the European Council in March 2005 (236Kb pdf) adopted the European Youth Pact. As a set of policies and measures based on the Lisbon Strategy, it aims at taking action for young people in the fields of employment, integration and social advancement, education and training, mobility, and reconciling family and work life.

The Commission’s Communication Working together for growth and jobs, A new start for the Lisbon Strategy (490Kb pdf) proposed the European initiative for young people. The Commission Communication on European policies concerning youth (186Kb pdf) emphasises the need to equip young people with knowledge, skills and competencies through high quality and relevant education and training.

Worklife cycle approach

Demographic changes reinforce the importance of EU policies in promoting: the modernisation of work organisation, the definition of lifelong learning strategies, the quality of the working environment and ‘active ageing’. Extending working life can be achieved in many different ways and through different choices over the lifecycle.

• Companies are challenged to avail of the experience and skills of older workers and to prepare younger colleagues to be able to take on the work when they retire.

• Work organisation needs to take account of the specific needs of each age group. Regarding younger people, a more adaptable and flexible organisation of working time can facilitate a better balance of family life and work. At the same time, the exit from the labour market can be facilitated by more flexible bridges between work and retirement.

• Further ways of encouraging people to remain at work are progress in quality of jobs and the working environment by reducing the risk of occupational accidents and by improving workers’ health, especially older workers (EU0406NU05).

The report by the High Level Group on Social Policy highlights that labour market entry should be supported by measures guaranteeing the employability of the younger population. A late entry into the labour market is seen as a positive development when young people enter with appropriate skills and can immediately find work corresponding to their qualifications. Unfortunately, the high level of unemployment among young people indicates that they do not all benefit from such opportunities (Annual review of working conditions in the EU: 2004-2005 EU0502AR01).

The High Level Group calls for the sustained integration of young people into the labour market and emphasises the importance of giving access to work and training, incorporating an effective use of preventive and active measures, including intensive coaching. One proposal is to develop training in a combination of educational institution and the workplace, such as in the German dual system. A job-skills match is seen as essential to ensure an earlier entry to the labour force and to postpone retirement.

Against the background of the expected decline in the working age population and in the view of a new intergenerational approach, Guideline No. 18 of the Integrated Guidelines for Growth and Jobs 2005-2008 (60Kb pdf), approved at the June European Council meeting (253Kb pdf), outlines a lifecycle approach to work that seeks:

• to build employment pathways for young people and reduce youth unemployment;

• to increase female participation;

• improvements in work-life balance and provision of accessible and affordable childcare facilities and care for older dependants;

• support for active ageing, including working conditions, improved (occupational) health status and adequate incentives to work and discouragement of early retirement;

• modern social protection systems supporting participation and better retention in employment and longer working lives.

Anni Weiler, AWWW GmbH ArbeitsWelt - Working World