In May 2009, the trade union research institute, Fundación 1º de Mayo, issued a study on the labour market participation rate of people aged 55–64 years and their career paths. It shows that the activity and employment rates of this population group have increased significantly in the past 10 years, although gender differences remain. The report identifies some of the main elements that influence the participation of this age group in the labour market.
About the study
The report on the labour market participation of people aged 55–64 years and their career paths (in Spanish) was published in May 2009 by the research institute Fundación 1º de Mayo. The latter was established by the Trade Union Confederation of Workers’Commissions (Comisiones Obreras, CC.OO) in 1988.
From a methodological point of view, the main information sources for this study were the survey based on a continuous sample of work histories (‘Muestra continua de vidas laborales’) and the 2005 Spanish Labour Force Survey (Encuesta de Población Activa 2005, EPA 2005). The sample of work histories survey is based on tax data and carried out on an annual basis by the Spanish Ministry of Labour and Immigration (Ministerio de Trabajo e Inmigración, MTIN), while EPA is implemented by the National Institute of Statistics (Instituto Nacional de Estadística, INE).
General situation of older workers in Spanish labour market
The proportion of economically active people aged between 55 and 64 years has increased significantly in the past 10 years, reaching 49% of the total economically active population (including those seeking work) in 2008. This represents a nine percentage point increase compared with the activity rate of the 55–64 age group 10 years ago. Nonetheless, significant differences between the economic activity of men and women remain: in 2008, some 65% of men aged 55–64 years were economically active, while only 34% of women of the same age group pursued an economic activity.
The increase in labour market participation of the 55–64 age group has led to a sustained employment growth in Spain over the past 10 years. As a result, the employment rate of this population group has reached 46% in 2008 – a 10 percentage point increase compared with the rate in 1998. The increasing labour market participation of women has contributed to this employment growth: the employment rate of women aged 55–64 years has increased by 13 percentage points between 1998 and 2008, compared with an increase of six percentage points in the employment rate of men of the same age group over the same period.
Aspects influencing labour market participation of older people
The report identifies some of the most relevant elements influencing the participation – or not – of this mature age group in the Spanish labour market. With regard to gender, women aged 55–64 years show a lower probability of being employed or, alternatively, they are more likely to be unemployed. Moreover, data show that retirement is particularly relevant among workers aged 60 years or more, especially among women.
The economic sector in which individuals work is another key aspect explaining the labour market situation of this age group. Thus, 55–64 year old people have a lower probability of being employed in sectors such as agriculture or hotel, restaurants and catering (Horeca), while those of this age group who are employed in the financial intermediation sector are more likely to be still in work.
Furthermore, self-employed people in the 55–64 age group are also likely to be working than those in a dependent employment relationship. In addition, the most highly skilled and qualified workers, such as engineers and graduates, are more likely to be working than low skilled and poorly qualified workers.
Interestingly, the report also reveals that people of this age group are more likely to be in employment when they have not, or infrequently, changed from one sector to another in their career. The same holds true in relation to working status: people who have not, or seldom, moved from self-employment to dependent employment, or vice versa, are more likely to remain economically active than those who have moved more frequently.
Commentary
The situation of older workers in the Spanish labour market is an issue of growing importance, due to the continuous ageing of the country’s population in particular. However, up until now, employment policies and company practices in Spain have not paid much attention to this issue nor targeted this age group. It seems important to reinforce policies focusing on the labour market participation of people in the 55–64 age group in the coming years. Such policies should introduce a new and specific human resources management, including elements such as support for continuing education activities for this age group, improvement of workplace security for older workers or voluntary flexible working time practices such as part-time working arrangements.
Iñigo Isusi and Jessica Duran, IKEI