Older Workers in Europe: Let's Make it Happen
Enforcing extended work hours in 2025 becomes essential for European economy: Promoting employment of aging workforce becomes a necessity.
Are those golden years not quite golden enough? By 2050, Europe's working-age population will be dominated by those aged 65 or older, making up almost half of the workforce. It's time to put the "silver tsunami" to good use!
As predicted by Eurofound's report Retaining Older Workers in an Aging Society, our future isn't as bright without the inclusion of older workers. The economy will be in trouble if we don't actively retain them.
Here's what you need to know about working seniors and the state of Europe's labor market.
1. Keys to the Employment Kingdom
Let's talk numbers. Between 2010 and 2023, the employment rate for Europeans aged 55-64 improved dramatically, increasing nearly 20 points. In 2023, over 40 million workers in the EU were aged 55 or older! However, it's not all fun and games. Older workers are more likely to experience long-term unemployment, making it tough to get back on track once they're out of a job.
2. Quality Counts (or Does It?)
In an ideal world, older workers would be scooping up the best jobs. But reality bites. While one in three senior workers earns a cozy spot in an "enriched" job, offering flexibility, autonomy, and stability, one in five still finds themselves in a "high-risk" gig, riddled with mental stress, low income, and work-life balance battles. And the gender gap? Startling. Older women are hugely disadvantaged when it comes to job security, wages, and access to skill development opportunities.
3. Flexibility: It's the Spice of Life
Part-time work and self-employment are craving some senior love. In countries like the Netherlands, Germany, and Austria, over half of older workers are already employed part-time. This "strategic" transition into retirement is growing in popularity. Freelance work offers a taste of independence for those who need it.
4. The Loyalty Awards
Older workers who've been with an employer for five years or more are a dedicated bunch. In some countries, their loyalty is unmatched—with rates above 75% in Ireland and Greece. But elsewhere in Europe, the trend is less impressive. France and Luxembourg struggle to maintain rates as high as 45%.
5. The Middle Man: What Keeps Seniors Away?
Several barriers stand in the way of active, productive seniors. Aging comes with its share of health issues, care responsibilities, and digital skill gaps. Skill development opportunities are scarce in Eastern Europe, and age discrimination is still all too common.
6. It's Time to Change the Game
Eurofound's report calls for urgent action. Here's what we need to do:
- Retire General Retirement: Gradually phase out general early retirement programs, but protect those in physically demanding jobs.
- Build Care Infrastructure: Invest in the infrastructure that allows workers to care for their loved ones without leaving their jobs.
- Kick Ageism to the Curb: Train employers to eliminate age discrimination in recruiting, education, and promotion practices.
- Offer Flexible Retirement Choices: Expand options like part-time or phased retirement to give seniors more control over their career transitions.
7. We're in this Together: FAQ
7.1 Who are we talking about here? Just the oldies?
"Working seniors" are generally those aged 55 and above, actively working or able to work. Regarding European Union policies and research, the age group usually includes 55-64-year-olds and sometimes extends up to 69, depending on employment patterns and retirement laws.
7.2 Why is it important to focus on seniors in the labor market?
With an aging population and a projected 52% share by 2050, retaining working seniors is crucial. Their presence helps fill labor gaps, alleviates pressure on pension systems, and preserves valuable experience and skills.
7.3 Are there more seniors working now than in the past?
Yes! Between 2010 and 2023, the employment rate for the 55-64 age group shot up by 20 percentage points, reaching 64.5%. The number of working seniors increased from 23.8 million to nearly 40 million in the same period.
7.4 What challenges do seniors face in the labor market?
Older workers grapple with long-term unemployment challenges, age discrimination, health concerns, caregiving responsibilities, and limited access to skill development opportunities.
7.5 What kind of jobs do seniors usually prefer?
Many seniors opt for part-time jobs, flexible arrangements, or self-employment. In 2023, nearly 20% of seniors across the EU were employed part-time, with a higher proportion among women (33%).
7.6 How does the quality of work for seniors stack up?
Things are uneven. About one-third of seniors enjoy decent employment, but around one-fifth work in high-risk jobs. Women face worse job quality compared to men.
7.7 Is the retention of seniors improving?
It's not all bad news. According to Eurofound, there's been an upward trend in the employment retention of seniors. The proportion of seniors who have been with their employers for five years or more increased from 44% in 2010 to 57% in 2022. However, the rate varies significantly by country—from 78.5% in Greece to below 50% in France and Luxembourg.
7.8 What causes older workers to retire early?
- Health concerns or disability
- Insufficient access to healthcare services
- Lack of retraining opportunities
- Early retirement incentives
- Family care responsibilities
7.9 How can employers support older workers?
Answer: Employers can support older workers by providing flexible retirement options, fostering lifelong learning, combating ageism, improving workplace health and ergonomics, and promoting intergenerational collaboration.
7.10 What policies do EU countries use to support older workers?
Answer: Many EU countries take steps such as raising the legal retirement age, offering incentives for later retirement, investing in lifelong learning, expanding care infrastructure, and promoting age-friendly workplaces.
The finance industry and business sector must take note, as the retention of older workers is increasingly important for Europe's future. As Eurofound's report Retaining Older Workers in an Aging Society suggests, actively retaining older workers can help alleviate the negative impact on the economy that the upcoming retirement wave could cause. In light of this, it's imperative for the finance and business sectors to address the challenges and barriers faced by seniors in the labor market, such as age discrimination and health concerns, and to implement policies that support their continued employment, such as offering flexible retirement options and fostering lifelong learning.
