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The Active and Healthy Ageing in Slovenia has received funding from the European Union.

Promotion of seniors’ employability and postponed retirement decisions

Boris Majcen, Damjan Kavaš, Institute for Economic Research Ljubljana, 4th July 2016

The Active and Healthy Ageing in Slovenia has received funding from the European Union.

AIMS Conduction of analysis, including financial estimations, and preparation of recommendations for effective measures and models for the new strategy with the aims:

• to improve the situation of older people in the labour market in Slovenia

in terms of raising the employment rate of older people;

• to raise the exit age from the labour market by the pension reform.

The Active and Healthy Ageing in Slovenia has received funding from the European Union.

GOALS

• The main goal is to identify adequate measures and actions, which

would improve sustainable employability of elderly as well as to support postponement of retirement decisions in favor of active participation in the labour market.

• The additional goal is to determine responsibilities of relevant

stakeholders to design and implement certain measures/actions/reforms, to identify important linkages between different stakeholders to achieve adequate synergies, together with indicators to assess the progress in achieving foreseen goals.

The Active and Healthy Ageing in Slovenia has received funding from the European Union.

Process

Situation analysis

• Statistics, projections
• Existing analyses, strategic documents, good practices:

different dimensions

Additional information

• Questionnaires
• Meetings with stakeholders

Measures proposed

• Assessment of existing measures
• Measures proposed

The Active and Healthy Ageing in Slovenia has received funding from the European Union.

DEMOGRAPHIC CHALLENGES

• Increasing life expectancy (2013-2060): +5.6 years women, +7.2 years

men (2012-2012: +2.8 Y (W), +4.5 Y (M)

• Fertility: after 2. WW 32-34.000 – till 2003 decrease to 17.000
• Fertility rate only 1.2 in 2003, increased to 1.55 in 2013
• Within last 25 years 20% less born children
• In the next decades about 125.000 less persons in active age
• Lower number of women in fertility age – less new born children
• Negative effects on labour market and long-term sustainability of public

finances – roots in ancient past (half a century ago)

The Active and Healthy Ageing in Slovenia has received funding from the European Union.

DEMOGRAPHIC CHALLENGES - MIGRATIONS

• 1993-2006 net migrations 2.500 persons per year
• 2007 in 2008 net migrations around 15.000 persons per year
• During the economic crisis substantial decrease: 2010-2013 only 700 persons/year
• In 2014 negative net migrations flows
• EUROPOP2013 assumption: net migrations from 4.000 – 6.000 persons/year
• Would Slovenia succeed to attract such a number of net migrants in real life?

The Active and Healthy Ageing in Slovenia has received funding from the European Union.

DEMOGRAPHIC CHALLENGES

The Active and Healthy Ageing in Slovenia has received funding from the European Union.

DEMOGRAPHY – THE NUMBER OF POPULATION

• The number – minimal changes
• Age structure – substantial changes
• The share of population 65+ will almost duble in the next 35 years!

1980 1990 2000 2010 2020 2030 2040 2050 2060 Number of population by individual age groups P0-19 583245 559355 456145 393342 415505 406290 383348 405090 408511 P20-64 1087063 1224878 1255897 1316712 1241943 1158303 1115021 1046007 1031963 P65+ 214169 213857 278230 339207 430428 522518 580098.5 618296 599208 Total 1884477 1998090 1990272 2049261 2087876 2087111 2078467 2069393 2039681 Share of population in individual age groups according to the total population number P0-19 30.9 28.0 22.9 19.2 19.9 19.5 18.4 19.6 20.0 P20-64 57.7 61.3 63.1 64.3 59.5 55.5 53.6 50.5 50.6 P65+ 11.4 10.7 14.0 16.6 20.6 25.0 27.9 29.9 29.4 Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

The Active and Healthy Ageing in Slovenia has received funding from the European Union.

DEMOGRAPHY – Alternative variants of dem. projections

The Active and Healthy Ageing in Slovenia has received funding from the European Union.

EMPLOYMENT RATES

The Active and Healthy Ageing in Slovenia has received funding from the European Union.

LONG-TERM SUSTAINABILITY OF THE PENSION SYSTEM

The Active and Healthy Ageing in Slovenia has received funding from the European Union.

CHANGES IN THE EMPLOYMENT RATES

Male 2015 2020 2025 2030 2035 2040 2045 2050 2055 2060 50-54 78.4 77.8 81.3 80.7 82.2 83.4 84.2 85.1 86.1 86.1 55-59 63.3 72.0 72.3 74.0 74.9 76.2 77.4 78.8 80.4 80.5 60-64 25.9 45.0 51.4 50.7 56.3 60.2 63.1 66.2 69.4 69.5 65-69 10.8 11.0 19.1 21.5 27.6 33.8 38.9 44.0 49.3 49.3 70-74 6.0 7.1 7.2 11.9 14.7 16.4 20.0 23.3 26.7 26.7 Women 2015 2020 2025 2030 2035 2040 2045 2050 2055 2060 50-54 77.2 78.1 81.6 79.7 80.3 81.1 81.8 82.3 82.9 83.0 55-59 45.3 63.4 71.6 73.6 73.4 74.5 75.7 77.1 78.5 78.6 60-64 11.3 27.2 44.6 49.2 55.0 58.2 61.1 64.4 67.8 67.9 65-69 7.0 5.1 10.6 17.2 25.3 31.5 36.4 41.6 47.0 47.1 70-74 2.7 3.5 2.2 4.9 10.0 12.7 16.4 19.8 23.5 23.5

The Active and Healthy Ageing in Slovenia has received funding from the European Union.

CHANGES IN THE NUMBER OF EMPLOYED

The Active and Healthy Ageing in Slovenia has received funding from the European Union.

NUMBERS

25 50 75 100 EU-28 Euro area (EA-19) Sweden Germany Netherlands Denmark United Kingdom Austria Estonia Czech Republic Finland Luxembourg Latvia Lithuania France Slovenia Portugal Malta Cyprus Belgium Hungary Ireland Poland Bulgaria Romania Slovakia Spain Italy Croatia Greece 15–24 years 25–54 years 55–64 years

Employment rates in the EU-28 in 2014 by age group

The Active and Healthy Ageing in Slovenia has received funding from the European Union.

NUMBERS The employment rate among the Slovenian population aged 55-64 is distinguished by:

• Sectors: a higher proportion in activities of "Agriculture, forestry and

fishing", "Electricity, gas and steam, and water supply," "Sewerage, waste management and remediation activities„, "Real estate„, a growing proportion of older people in manufacturing.

• Form of employment: a higher proportion of people in employment

aged over 55 years among the self-employed than among employees.

• Regions: the existence of considerable differences between the

regions where the high proportion of people in employment aged over 55 stands out in the Coast-Karst region, Pomurje and Podravje region.

The Active and Healthy Ageing in Slovenia has received funding from the European Union.

REASONS

• Early retirement
• Corporate bankruptcies
• Low educational structure of the older people
• Lack of modern competencies
• Negative attitude of employers towards older employees (prejudices)
• Inadequate working conditions for seniors
• Insufficient incentives to prolong employment
• Non-flexible labour market for older people
• Lowering the inclusion of older people in active employment policy
• Intergenerational conflicts
• The public sector represents a negative appearance of the treatment of older

employees ("forced" retirement; employee as an expense)

• The participation of retired persons in the informal economy

Extending working lives + lifelong learnign Overall employment prospects Macro-economic factors of influence Threats to fiscal sustainability Financing the „graying of the population“ Overall Demographic situation Structural changes in paid work National policies Threat to Intergenera- tional solidarity Rising care

• bligations

NGOs + Older persons‘ representatives Employees Social partners Employers European policies National policies Local policies Public social insurance Private social insurance Labour market policies Self-promotion of workers/employees Family and care policies Promotion of Disadvantaged groups Tax policies Pension/retirement policies Promotion of Lifelong learning Health Promotion/ protection Labour market mobility Social innovation Person-environment perspective Good practice User- participation Intergenerational perspective Life course perspective Comprehensive/ Integrated approaches Workability Employability Quality

• f work

Healthy ageing Quality

• f life

Inter- generational solidarity 1 2 3 4 5 6

Domestic domain

Social context, economy

Social position Labour market Motivation work

• rganisation

Work Lifestyle Health Work ability Knowledge work & skills finances legislation early Pension entitlement age late Retirement

The Active and Healthy Ageing in Slovenia has received funding from the European Union.

ADDITIONAL CHALLENGES

• New ways of working: disruptive technologies that require proper

qualification of employees, reduced need for employees, the disappearance of certain professions, jobless growth.

• Societal challenges: climate change, political turmoil, including

political/economic migration, the lack of natural resources, globalization.

• Regional differences: the highest proportion of older people is

generally in the regions, which are economically less developed (Pomurska, Podravska, Koroška, Notranjska-Karst region, Zasavska), economic problems are often concentrated in certain locations (e.g. Bela Krajina and Kočevje, Posočje).

The Active and Healthy Ageing in Slovenia has received funding from the European Union.

SPECIFIC OBJECTIVES

The Active and Healthy Ageing in Slovenia has received funding from the European Union.

Measures EU MSs Slovenia A comprehensive approach to active aging National strategies: Netherlands, Finland, Great Britain, Spain, Poland, Estonia, Latvia and Slovakia No Lifelong learning programs, education, training and skills development National strategies: Finland, Sweden, Austria and Slovakia YES, but relatively low participation of older people Policies and measures that promote healthy working conditions and health of the employees Mainly legislation: Portugal, Ireland, Slovakia, France, Belgium Yes Age management Austria, Germany, Netherlands,

• Finland. Significant differences

between companies. No

Approach of the EU MSs to the AHA, a comparison with Slovenia

The Active and Healthy Ageing in Slovenia has received funding from the European Union.

Measures EU MSs Slovenia Services for older workers All EU States, different accents (financial incentives, guidance, individual planning, recruitment, preferential treatment of the elderly, training) and the various territorial (national, regional, local) and sectoral approaches (eg. Netherlands). Yes Older employees friendly tax advantage: making work pay Germany, Austria, Belgium, Sweden Yes Measures to transfer knowledge and experience Countries have different ways of transferring knowledge and experience from older to younger workers (France, Latvia, Portugal, Spain) Support: subsidies, tax breaks YES (Mentoring schemes), but limited resources available

Approach of the EU MSs to the AHA, a comparison with Slovenia

The Active and Healthy Ageing in Slovenia has received funding from the European Union.

Measures EU MSs Slovenia Incentives to employers for employment and prolonged employment of older workers 1. Reductions in social security contributions: (Luxembourg, Belgium, Sweden, Greece, Spain, Poland, Portugal, Romania) 2. Subsidies to cover the costs

• f older employees:

(Germany, Belgium, Croatia, Austria, Greece, Poland) Yes, with particular emphasis on problem areas (Pomurje, Zasavje, Pokolpje, Maribor with surroundings) Measures to combat discrimination against the elderly Some countries have introduced appropriate legislation to prevent age discrimination (e.g. The United Kingdom, Sweden, Estonia) and introduce positive discrimination (Slovakia) Yes

Approach of the EU MSs to the AHA, a comparison with Slovenia

The Active and Healthy Ageing in Slovenia has received funding from the European Union.

APPROACH – EXPERIENCES FROM ABROAD

• It is necessary to prepare a comprehensive reform that covers all aspects of

social security (disability, sickness benefits, and unemployment benefits) and wider (education, labour market, occupational safety, health promotion).

• A combination of measures, which encourages prolonged employment and

limits early retirement, is needed, i.e. the combination of incentives and restrictions.

• They must have long-term goals, since it is necessary to take into account

demographic projections and life-cycle approach.

• It should be noted that older workers represent a very heterogeneous

category (age, occupation, education, health, family status).

• Businesses have an important role in the prolonged employment and

employment of older people, so it is important that companies are involved in the preparation and implementation of activities.

The Active and Healthy Ageing in Slovenia has received funding from the European Union.

THE MAIN TWO (STRATEGIC) OBJECTIVES 1. The increase in the employment rate among people aged 55-64 years. 2. Public finance sustainability of the pension system and an adequate pension.

The Active and Healthy Ageing in Slovenia has received funding from the European Union.

SPECIFIC OBJECTIVES 1. Improving the employability of older people. 2. The inclusion of older people in the employment. 3. Strengthening of intergenerational cooperation and coordination

• f work/life balance.

4. Informing the population about the characteristics of the labour market and the pension system (state reform) and the establishment of a regular dialogue on the reform of the pension system and the preparation of expert bases.

The Active and Healthy Ageing in Slovenia has received funding from the European Union.

Improving the employability of older people 1. Training and education programs for older people (unemployed, employed), skills development (unemployed, employed). 2. Changing the attitude of employers and the general public towards

• lder people (promotion of employment of older workers) and

promotion of the importance of active and healthy ageing. 3. Promoting programs to ensure the safety and health at work, including health promotion programs at the workplace, for all generations at the company/organisations level. 4. Promoting the integrated age management in organisations (public/private).

The Active and Healthy Ageing in Slovenia has received funding from the European Union.

The inclusion of older people in the employment 1. Incentives to employers for employment and prolonged employment

• f older workers.

2. Public Works. 3. Promoting social entrepreneurship and self-employment. 4. More active role of the Employment Service of Slovenia.

The Active and Healthy Ageing in Slovenia has received funding from the European Union.

Strengthening of intergenerational cooperation and coordination of work/life balance 1. Intergenerational cooperation. 2. Reconciliation of work and private life of older employees. 3. Organisation of working time for older people.

The Active and Healthy Ageing in Slovenia has received funding from the European Union.

Information and regular dialogue 1. The establishment of a regular dialogue between stakeholders. 2. Establishment of a permanent information system. 3. Preparation of relevant expertise.