Encouraging older people

1. Encouraging older people Professor Stephen McNair Director CROW

2. The last remaining “normal” discrimination • 1 in 3 people over 50 experience age discrimination • 1 in 5 has no formal qualification • Labour market participation falls with age • Participation in training falls with age • It is very difficult to re-enter the market after 55 • 50+ unemployment rate is falling (down to 2.4%), but 1 in 3 of these are long term unemployed

3. Older people think • People should have the right to stay in work as long as they are fit and able (92%) • The skills and talents of older people are being wasted (89%) • Government is trying to make people work longer to reduce the tax burden on younger people (75%) • Now that most people are living longer, it is reasonable to raise the state pension age (27%) CROW Postal Survey 2004

4. What changes after 50? • Retirement ages fell, but now stopped • Workforce polarises (even more) and ladders vanish • Age discrimination is powerful • Well being is highest among employed • Life satisfaction is highest among part-time workers • Caring and working places stress on home before work • Those who are trained stay longer • For many the choice to leave becomes real JRF studies

5. Are older workers different? • Capacity for work does not decline – for most • Motivation to work does not decline – if well managed • Flexibility and reducing stress become (even) more important • Poor health is the main cause of “retirement” before 55 • Loyalty to employer rises (n.b. some differences are effects of generation, not age) Various

6. What makes work attractiveto (older) people? • Respect – feeling valued and using skills and knowledge • Social networks • Autonomy • Purpose • Money • Flexibility • Health

7. What prevents career change in later life? • Employers welcome stayers, but don’t recruit older people • Some employers are suspicious about flexibility • Workers are conscious of weak labour market position • Workers don’t request promotion, new opportunities or flexibility • Most change after 50 is downwards • Men climb higher and fall further Age Discrimination: a lived experience and the employer dimension – CROW 2006

8. Who is vulnerable to premature exit? • Experienced but not qualified • Low basic skills • Low level health problems • Low self confidence • Want to change job/employer • Want to work more flexibly – phase into retirement

9. The role of education and training • Those who train stay longer • Training maintains employability • Training needed to compensate for historic disadvantage • Promotion is needed to ensure take up – this is the least likely group to train

10. Vocational training • Two-thirds of older workers say that to do their job well they need skills they do not have • Over half received no training over the previous year • Training in technical skills most sought after • Less than one in five said they have ever refused training • Most never thought to ask for training CROW postal survey 2005

11. Learning participation by age NIACE 2006

12. Current employment policy • Raise labour market participation rates • Increase numbers over 50 in work by 1 million • Reduce IB claimants by 1 million • Make age discrimination illegal • Age Positive campaign

13. Current education policy • Strengths • Level 2 and basic skills free – but? • Ensures well qualified young entrants • Age discrimination law supports equity (??) • Weaknesses • No targeting of older people – despite their disadvantage • Only whole qualifications – too big for many • Targeting of young people - squeezes out the old • Exemption of funding from age discrimination law • No targeted IAG

14. Lessons for the design of work • Good management is critical • Honest conversations about plans – reviews, appraisals • Flexibility and part-time options help retention • Ensuring respect and status prevents early exit • Social motivation matters • Mission and purpose • Money • Health – intervene early • Improve training – access and relevance • Remember that people are different