tag:theconversation.com,2011:/uk/topics/shades-of-grey-3926/articlesShades of grey – The Conversation2012-09-28T03:48:11Ztag:theconversation.com,2011:article/97722012-09-28T03:48:11Z2012-09-28T03:48:11ZGrey expectations, or a silver lining? The challenges facing older workers<figure><img src="https://images.theconversation.com/files/15947/original/2959ybxh-1348791340.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Australians from skilled trades or professions are the most likely to find a niche in the ageing workforce.</span> <span class="attribution"><span class="source">Nurse image from www.shutterstock.com</span></span></figcaption></figure><p><em>Welcome to Shades of Grey, a series from The Conversation that examines the challenges posed by Australia’s ageing workforce. Today, Adjunct Associate Professor Margaret Patrickson from the University of South Australia takes a look at the underlying desires and expectations of our older workers.</em></p>
<p>Though much has been written about the issues that arise from workforce ageing, there is still not enough information about which older people might desire to work into their seventies or beyond — let alone whether they might actually have the opportunity to do so. </p>
<p>Since the turn of this century, both politicians and social analysts have consistently encouraged older people to remain in the workforce. The OECD has been especially vocal in this regard, even though there is <a href="http://www.google.com.au/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&ved=0CCAQFjAA&url=http%3A%2F%2Fwww.ncver.edu.au%2Fpopups%2Flimit_download.php%3Ffile%3Dresearch%2Fproj%2Fnr5012.pdf&ei=BNZjUMelFI2uiQerk4CICw&usg=AFQjCNHD6TyxO1SlqN1rpFCMKpMcxLi5RA">little evidence</a> to suggest these desires are being reflected in increasing opportunities for older people to work.</p>
<p>Lengthening life expectancy and consequent projected rising demands for pension income to support those no longer working underpin much of this rhetoric. Australian experience, however, indicates that unless older people have scarce sought-after skills or would be prepared to work either part time or accept power paid positions their options may be limited.</p>
<p>Those most likely either to seek a job — or find themselves a suitable niche in the workforce — tend to come either from skilled trades or professions, where skill shortages have forced employers to look outside their traditional hiring base. They include medical practitioners, plumbers, hairdressers, tilers, nurses, retail assistants, pharmacists and accountants. </p>
<p>They fall into two sub-groups. The first consists of skilled professionals who seek opportunities to continue to apply and utilise their skills, often on a part time or contract basis, and who gain significant personal satisfaction from making a contribution and feeling valued. This group contains a number of individuals who have previously reached high levels of expertise in their chosen profession, who command high salaries for their expertise and are often attributed with possessing high levels of wisdom and experience. </p>
<p>A second sub-group consists mainly of those who seek additional income to support their lifestyle, and this group often has to accept unpopular hours, shift work, frequently a less skilled job than an earlier full time role, and often lower pay. Those outside these two groups — and this would appear the larger group of older people — tend not to seek paid work as they either have enough to live on or else have not yet reached the level in their profession where they can command premium incomes and respect. Alternatively, their skills may be outdated and they do not wish to outlay funds to maintain their skill levels. </p>
<p>Members of this latter group frequently occupy the ranks of voluntary workers in our community and perform roles on which our economy relies on their unpaid input. Many of them see retirement as an opportunity for finding personal fulfilment and exploring new pursuits not previously open to them while they were working.</p>
<p>Opportunities where older workers might actually find work are far fewer than those seeking work and tend to be found in the peripheral workforce especially where labour scarcity or skill scarcity prevails. They tend to lie outside traditional full-time employment with larger organisations or within the public sector. A few vacancies exist in health, personal services, or in the building industry, where SMEs may frequently be more adaptable and flexible in their hiring practices.</p>
<p><a href="http://www.usq.edu.au/extrafiles/business/journals/HRMJournal/InternationalArticles/Volume10Ageing/GuestShacklockVol10-3.pdf">One recent survey of employers</a> by Guest and Schacklock indicates that older workers — though seen as experienced, loyal, dependable, hard working and reliable — are at the same time not viewed as creative, aggressive or willing to learn or change. Whether or not an individual might succeed in securing work depends on a combination of push and pull factors. Push factors include the non-availability of full time work, failing health, downsizing, relocation or similar. Pull factors include income augmentation, skill utilisation, opportunities for new skill acquisition, social interaction and possibly working from home. </p>
<p>Resolving these competing demands provides challenges that differ significantly between individuals largely as a consequence of differences in skill, occupation, family circumstances, location and personal attitudes to flexibility. It may be difficult to generalise or develop a one size fits all approach to the issue.</p>
<p>There are, however, several matters that have arisen from the investigations into the circumstances older workers face and how they react to them. </p>
<p>First of all, many older individuals <a href="http://www.voced.edu.au/content/ngv35515">would not welcome being made feel they need to work after they turn 65</a>. Rather, they may see this time in their life as an opportunity to explore alternatives other than working. Secondly, unless their work-related skills are up to date, their opportunities are likely to be less than they enjoyed when working full time and many do not want to have to outlay their own funds to maintain skill levels. Thirdly, finding an employer willing to hire them even for other than contract, casual or part time work may be challenging and they would need to pursue this option vigorously for success. Nonetheless, opportunities may arise in SMEs or through personal recommendations.</p>
<p><strong>Read more in the series:</strong></p>
<p><a href="https://theconversation.com/its-time-to-redefine-the-traditional-working-age-9829">It’s time to redefine the traditional working age</a></p>
<p><a href="https://theconversation.com/retirement-a-trigger-for-distress-or-welcome-relief-from-the-rat-race-8437">Retirement: a trigger for distress or welcome relief from the rat race?</a></p>
<p><a href="https://theconversation.com/older-workers-may-be-our-economic-salvation-or-a-pipeline-to-poverty-9281">Older workers may be our economic salvation – or a pipeline to poverty</a></p>
<p><a href="https://theconversation.com/theres-no-silver-bullet-solution-to-australias-ageing-workforce-9089">There’s no silver bullet solution to Australia’s ageing workforce</a></p>
<p><a href="https://theconversation.com/active-ageing-is-a-risky-labour-market-policy-7883">Active ageing is a risky labour market strategy</a></p><img src="https://counter.theconversation.com/content/9772/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Margaret Patrickson does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>Welcome to Shades of Grey, a series from The Conversation that examines the challenges posed by Australia’s ageing workforce. Today, Adjunct Associate Professor Margaret Patrickson from the University…Margaret Patrickson, Adjunct Associate Professor, International Graduate School of Business, University of South AustraliaLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/98292012-09-27T20:28:59Z2012-09-27T20:28:59ZIt’s time to redefine the traditional working age<figure><img src="https://images.theconversation.com/files/15866/original/32yppcsx-1348633086.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Many older people already want to work longer but encounter barriers to doing so.</span> <span class="attribution"><span class="source">Image from www.shutterstock.com</span></span></figcaption></figure><p><em>Welcome to Shades of Grey, a series from The Conversation that examines the challenges posed by Australia’s ageing workforce. Today, Rafal Chomik, a Senior Research Fellow at UNSW’s ARC Centre of Excellence in Population Ageing Research, argues that the traditional retirement age needs a rethink.</em></p>
<p>The phenomenon of population ageing is often summarised in a simple ratio. Known as the dependency ratio, it measures the proportion of those of traditional working-age (15-64 years) to those above it (65 years and over). In Australia, as in most other countries, this dependency ratio is on the increase, having risen from 15% in 1980 to 20% in 2012. By 2050 it is expected to reach 36%.</p>
<p>Yet who we consider to be of traditional working-age can change over time. Arguably more important than the dependency ratio is the proportion of people actually in the labour force supporting those who aren’t.</p>
<p>For example, despite the rising proportion of older people, Australia’s total labour force participation rates have increased over the last few decades, from 61% in 1980 to 65% in 2012, driven by greater numbers of women working. Women still have some way to go to catch up with men. But even as that happens, if we wish to offset the declines in total participation that result from population ageing, we need some of the older people to remain in the labour force.</p>
<p>Many older people already want to work longer but encounter barriers to doing so. The barriers and incentives that lead to their inactivity come at a high cost of foregone potential. In a <a href="http://cepar.edu.au/research-briefs.aspx">briefing paper</a> on the trends and prospects for mature-age labour force participation, co-written with Professor John Piggott at the <a href="http://www.cepar.edu.au/">Centre of Excellence in Population Ageing Research</a>, we estimate this cost to be around $30 billion, or 2.4% of GDP in 2012.</p>
<p>Besides dismantling mature-age employment barriers related to health, discrimination, and skills, there are some key institutional issues that government can tackle. These result from the carrots and sticks that make up the tax, benefit and retirement income system.</p>
<p>The most important of these are the three ages at which pension income can be accessed: 55 (increasing to 60) for superannuation access; 65 (increasing to 67) for age pension access; and 60 for tax-free superannuation benefits. These can be thought of as two sticks and a carrot.</p>
<p>Australia is increasing the access ages for the two sticks. But the access age for tax-free superannuation has been left untouched at 60. As Professor Piggott has <a href="http://www.afr.com/p/opinion/plenty_of_pluses_in_longer_working_wyrhbV179TZ4TqdjLGv44I">noted before</a>, “once the standard superannuation age reaches 60, in 2024, the carrot will have lost its crunch”.</p>
<p>These levers are not only more amenable to policy intervention, but also appear to have a greater impact. When New Zealand increased access to its pension from 60 to 65, mature-age participation rates shot up much faster than in Australia, and now stand considerably higher; 76% for those aged 55-64 compared to Australia’s 53%. A key explanation is that New Zealand doesn’t rely on a widespread superannuation scheme, which in Australia can be accessed much earlier.</p>
<p>But to what extent can we push for longer working lives? Some, such as my <a href="https://theconversation.com/active-ageing-is-a-risky-labour-market-policy-7883">fellow contributor</a> to The Conversation, raise concerns about leaving older people to the ravages of the labour market. There is indeed <a href="http://oem.bmj.com/content/early/2011/02/26/oem.2010.059030.abstract">evidence</a> that for mental health outcomes, a bad job can be as bad as or worse than inactivity.</p>
<p>Still, the quality of jobs in Australia is not necessarily worse than in other advanced economies. For example, the <a href="http://stats.oecd.org/Index.aspx?DatasetCode=TEMP_I">incidence</a> of temporary contracts among 55-64 year olds, a key indicator of job insecurity, stands at 4.6% – about half the rate of the OECD average.</p>
<p>Indeed, there doesn’t seem to be a relationship between a country’s mature age participation rate and incidence of mature-age mental health issues. While Belgium has one of the lowest <a href="http://stats.oecd.org/Index.aspx?DatasetCode=LFS_SEXAGE_I_R">participation</a> rates of 55-64 year olds in the OECD of 36%, Sweden has one of the highest, at 76%; yet both have the same incidence of <a href="http://www.oecd-ilibrary.org/social-issues-migration-health/mental-health-and-work_9789264124523-en">mental health</a> problems among 55-64 year olds.</p>
<p>It is important to remember that population ageing takes time. And society, as well as the labour market, can change and adapt over time. We know from health and education data that today’s older people are much better off than in the past. And looking at labour market data shows that while the proportion of unemployed 55-59 year olds who have been looking for a job for more than 12 months is at 34%, twice that for 25-34 year olds, this rate has declined more than for any other age group over the last decade.</p>
<p>Should labour markets become more turbulent and we find that older people increasingly struggle to engage with employment, then addressing labour supply and demand barriers seems more fitting than to simply retire them. The latter response is a mistake made in the past in the now familiar story across the OECD in the 1980s, of retrenchment and labour market exit of older workers to apparently make way for the young. This was in line with the debunked logic that there is only a certain number of jobs to go around.</p>
<p>Ever since the baby boomer generation, we have been redefining the timing of key life events. It is likely that later labour market entry, later marriage, child-bearing, and longer, healthier lives, will mean longer productive lives too. With the right mix of policy intervention, baby boomers who are now entering the age brackets of “traditional retirement age” may well redefine what that means too. And if they do work longer, then the “tsunami” of population ageing represented by an increasing dependency ratio will be no tsunami at all.</p>
<p><strong>Read more in the series:</strong></p>
<p><a href="https://theconversation.com/retirement-a-trigger-for-distress-or-welcome-relief-from-the-rat-race-8437">Retirement: a trigger for distress or welcome relief from the rat race?</a></p>
<p><a href="https://theconversation.com/older-workers-may-be-our-economic-salvation-or-a-pipeline-to-poverty-9281">Older workers may be our economic salvation – or a pipeline to poverty</a></p>
<p><a href="https://theconversation.com/theres-no-silver-bullet-solution-to-australias-ageing-workforce-9089">There’s no silver bullet solution to Australia’s ageing workforce</a></p>
<p><a href="https://theconversation.com/active-ageing-is-a-risky-labour-market-policy-7883">Active ageing is a risky labour market strategy</a></p><img src="https://counter.theconversation.com/content/9829/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Rafal Chomik works for the ARC Centre of Excellence in Population Ageing Research which receives funding from the ARC.</span></em></p>Welcome to Shades of Grey, a series from The Conversation that examines the challenges posed by Australia’s ageing workforce. Today, Rafal Chomik, a Senior Research Fellow at UNSW’s ARC Centre of Excellence…Rafal Chomik, Senior Research Fellow, ARC Centre of Excellence in Population Ageing Research, Australian School of Business, UNSW SydneyLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/84372012-09-26T20:25:55Z2012-09-26T20:25:55ZRetirement: a trigger for distress or welcome relief from the rat race?<figure><img src="https://images.theconversation.com/files/15835/original/b53t7z5n-1348538642.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">There's little proof that the transition to retirement has a significant impact on mental health.</span> <span class="attribution"><span class="source">petruzzophoto</span></span></figcaption></figure><p><em>Welcome to Shades of Grey, a series from The Conversation that examines the challenges posed by Australia’s ageing workforce. Today, Australian National University’s Sarah Olesen and Peter Butterworth look at the issue of mental health and well-being in retirement.</em></p>
<hr>
<p>Community views on retirement are polarised. Some see it as an opportunity to escape work obligations and pursue their own passions. Others view the transition as a loss of status, social connectedness, and financial security.</p>
<p>We’ve studied this topic using large samples of Australians to explore how retirement is associated with mental health and well-being.</p>
<p>The view that retirement has a negative effect on mental health is consistent with <a href="http://onlinelibrary.wiley.com/doi/10.1348/096317999166518/abstract">decades of evidence</a> about the impacts of job loss among young and middle-aged people. And the transition to retirement is certainly a major milestone and lifestyle change, given the central roles work and career play in most people’s lives. </p>
<p>Studies comparing the mental health of retirees with that of working older adults has shown that retirees (particularly men) <a href="http://www.ncbi.nlm.nih.gov/pubmed/16171915">tend to have</a> greater levels of depression and anxiety than their working peers.</p>
<p>But <a href="http://jech.bmj.com/content/57/1/46.long">longitudinal studies</a> that track the mental health of people moving from work to retirement offers little proof that this transition has a significant detrimental impact on the mental health of most people. Indeed, it seems <a href="http://www.springerlink.com/content/v7273p25t711v46m/?MUD=MP">more likely</a> that the poor mental health observed among many retirees precedes and perhaps has <em>driven</em> their workforce exit.</p>
<p>The reasons for retirement, whether people left work gradually or continue to work in some capacity during retirement, and the age at which people leave work have all been shown to affect mental health among retirees.</p>
<p>Not surprisingly, involuntary or unexpected job loss in later life is the form of retirement that has been most consistently <a href="http://www.ncbi.nlm.nih.gov/pubmed/11833981">linked to increased depression</a>. On the other hand, part or gradual retirement (rather than full departure from the workforce) may ease the stress associated with leaving the workforce.</p>
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<img alt="" src="https://images.theconversation.com/files/15836/original/z8p985vv-1348538642.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/15836/original/z8p985vv-1348538642.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=398&fit=crop&dpr=1 600w, https://images.theconversation.com/files/15836/original/z8p985vv-1348538642.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=398&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/15836/original/z8p985vv-1348538642.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=398&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/15836/original/z8p985vv-1348538642.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=500&fit=crop&dpr=1 754w, https://images.theconversation.com/files/15836/original/z8p985vv-1348538642.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=500&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/15836/original/z8p985vv-1348538642.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=500&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
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<span class="caption">Retirement has the most positive psychological effects for people with strong social supports.</span>
<span class="attribution"><span class="source">TechSavi</span></span>
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<p>We are all familiar with the popular image of early retirement being a luxury enjoyed by financially secure individuals who lead full and satisfied lives. However, contrary to this widely held idea <a href="http://www.ncbi.nlm.nih.gov/pubmed/16614785">research shows</a> that early retirees tend to have <a href="http://www.ncbi.nlm.nih.gov/pubmed/16650345">much poorer mental health</a> than their working peers and older retirees. </p>
<p>Again, this may in part reflect the reasons for their early workforce exit, such as existing health concerns. But these studies also suggest that poor mental health may stem from being out of the workforce at an age when most of one’s peers are still working.</p>
<p>Workplace conditions can also impact upon people’s decisions to stay at work. We’ve <a href="http://www.springerlink.com/content/v7273p25t711v46m/?MUD=MP">found</a> that older people with stressful jobs or jobs that offer little security or autonomy have poor mental health and tend to retire early. This research suggests that improving conditions at work may encourage better mental health and longer workforce engagement for older adults.</p>
<h2>Once retired, who does best?</h2>
<p>Retirement has the strongest <a href="http://www.ncbi.nlm.nih.gov/pubmed/21337177">positive psychological effect</a> on people with solid social supports. Older adults who are engaged in their communities and spend more time with family and friends have better mental health than others. And this is particularly true for retirees, as community participation has added meaning and importance to one’s mental health once paid work has finished.</p>
<p>As a nation, we’re constantly looking for ways to maintain the health – both mental and physical – of older adults and encourage their continued participation in the workforce. Knowing the risk factors for mental health problems as a result of workforce exit in later life is key to these goals.</p>
<p>Fortunately, there is little cause for concern that retirement will lead to greater depression or anxiety.</p>
<p><strong>Read more in the series:</strong></p>
<p><a href="https://theconversation.com/older-workers-may-be-our-economic-salvation-or-a-pipeline-to-poverty-9281">Older workers may be our economic salvation – or a pipeline to poverty</a></p>
<p><a href="https://theconversation.com/theres-no-silver-bullet-solution-to-australias-ageing-workforce-9089">There’s no silver bullet solution to Australia’s ageing workforce</a></p>
<p><a href="https://theconversation.com/active-ageing-is-a-risky-labour-market-policy-7883">Active ageing is a risky labour market strategy</a></p><img src="https://counter.theconversation.com/content/8437/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Sarah Olesen receives funding from National Health and Medical Research Council, the Australian Research Council, and beyondblue: The National Depression Initiative.</span></em></p><p class="fine-print"><em><span>Peter Butterworth has received funding from the NHMRC, ARC, Safe Work Australia and Department of Familes, Housing, Community Services and Indigenous Afffairs</span></em></p>Welcome to Shades of Grey, a series from The Conversation that examines the challenges posed by Australia’s ageing workforce. Today, Australian National University’s Sarah Olesen and Peter Butterworth…Sarah Olesen, NHMRC Reserach Fellow, Centre for Research on Ageing, Health and Wellbeing, Australian National UniversityPeter Butterworth, Associate Professor, Centre for Research on Ageing, Health and Wellbeing, Australian National UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/92812012-09-25T20:20:16Z2012-09-25T20:20:16ZOlder workers may be our economic salvation - or a pipeline to poverty<figure><img src="https://images.theconversation.com/files/15223/original/sy9cjxzq-1347236473.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">What are the benefits and risks of an ageing workforce? Image source: www.shutterstock.com</span> </figcaption></figure><p><em>Welcome to Shades of Grey, a series from The Conversation that examines the challenges posed by Australia’s ageing workforce, Today, Macquarie University’s Ben Spies-Butcher explains how increasing the participation of older workers for purely economic reasons can lead to poverty.</em></p>
<hr>
<p>Economists claim that older workers may be our salvation against the perils of population ageing. </p>
<p>A <a href="http://www.hreoc.gov.au/age/publications/mature_age/deloitte-mature-age-participation-research.pdf">recent report from Deloitte Access Economics</a> has claimed a 5% increase in participation by older workers could increase GDP by $48 billion over 12 years. </p>
<p>But the history of women entering the workforce shows striving for equal participation can be a double-edged sword. Prosperity can accompany greater equality – between men and women, young and old – but without broader economic and social change it can mean growing inequality and insecurity amongst those left behind.</p>
<p>Before the concern over the ageing population began building during the 1990s, Australian governments were preoccupied with another challenge – globalisation. Open markets threatened the traditional economic model, which had protected manufacturing; had seen the development of a stable export trade with our former colonial master – Britain; and had guarded wages and working conditions through a centralised system of court arbitration.</p>
<p>Over the next 30 years, Australia gradually restructured its economy. Markets were opened, wages were deregulated, new export markets were expanded. While many experts hail this process as successful in generating higher incomes, it also resulted in considerably greater financial inequality and insecurity.</p>
<p>Market deregulation threatened to make it even worse. In New Zealand and the USA, it saw a much more dramatic decline in equity and social connection. Australia instead pursued a more moderate reform agenda. Wages were held down, and casualisation did increase. But other measures were taken to cushion the effects on workers. A key part of this cushion was a deliberate move to push women into work.</p>
<p>Even the feminist movement, particularly the “femocrats” involved in policy making, saw an opportunity to advance gender equality with economic arguments. While individual wages might stall, having a second income promised to increase family incomes. And increasing the number of women workers promised to ease labour shortages, particularly in the growing services sector.</p>
<p>Over the 1980s and 1990s Australia’s female participation rate rose 13 percentage points, double the OECD average. These workers have proven invaluable in some of the industries where employment is growing fastest – health, education, retail, and childcare. It has also played a significant role in raising family incomes, and giving women greater financial independence and life choice.</p>
<p>It seems the current Labor government is following a similar formula in promoting the employment of older workers. </p>
<p>Population ageing potentially lowers economic growth, not only because more Australians will be over our traditional retirement age of 65, but because participation rates for those older workers (50-65) are lower than for the young.</p>
<p>But our experience with women workers suggests some caution is needed in promoting this new agenda. When older workers are welcomed, discrimination reduces and experience is valued, proving that there are clear benefits to increasing workforce participation. </p>
<p>But these changes are also likely to see new forms of inequality, and create new economic pressures that mean many, especially those with fewer skills, those who work in manual labour and those with disabilities, will feel compelled to work in insecure or disappearing jobs.</p>
<p>Both these forces were evident in the transition to a more gender equal workforce. Until recently the inclusion of more women in the workforce led to a decline in the gender wage gap and a change in social norms, which saw reduced gender discrimination. These changes have not yet gone far enough – and on many levels have stalled – but it has been a positive shift.</p>
<p>On the flip side, the rise in the number of double income families has sent house prices up, effectively forcing most families to have two earners. Women have also been concentrated to low paid, casual jobs, and have lacked access to childcare. Rather than changing work so that women are welcomed, much of the change has come from financial pressures that force women (and men) to work in unfriendly environments.</p>
<p>We have to think carefully about the broader changes that come from changing work patterns. Recent research has found that three in 10 older workers face direct discrimination. That is unacceptable, and a key reason why older people don’t stay in the workforce for longer. </p>
<p>Alongside policies to encourage employers to welcome older workers, the government has also been wielding the stick. It will be increasing the age at which we become eligible for the pension to 67. Many white collar, professional workers might welcome this. Many will want to work longer, and those that can’t will be able to access superannuation from 60 to ease out of the workforce.</p>
<p>That’s not the case for many unskilled and manual workers, who will struggle to find work and whose bodies will groan in their traditional jobs. It will mean an increasing divide amongst older households. </p>
<p>Over time, this will only get worse as younger generations – where many workers will never be able to afford a home – will reach retirement age. Better educated and secure workers will continue to work in highly paid jobs, in secure housing, without a mortgage. Others will struggle on in private rentals, casual work and frequent unemployment.</p>
<p>Older people remaining in the workforce is to be welcomed – but doing so for purely economic reasons can be a recipe for poverty and social exclusion. Equality and economic participation can go hand in hand, but this requires addressing both issues simultaneously. We want people to work because they find meaning, purpose and acceptance in what they do – not because they will be evicted if they don’t. </p>
<p><strong>Read more in the series:</strong></p>
<p><a href="https://theconversation.com/theres-no-silver-bullet-solution-to-australias-ageing-workforce-9089">There’s no silver bullet solution to Australia’s ageing workforce</a></p>
<p><a href="https://theconversation.com/active-ageing-is-a-risky-labour-market-policy-7883">Active ageing is a risky labour market strategy</a></p><img src="https://counter.theconversation.com/content/9281/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Ben Spies-Butcher has received funding from ACE National (association of disability employment agencies).</span></em></p>Welcome to Shades of Grey, a series from The Conversation that examines the challenges posed by Australia’s ageing workforce, Today, Macquarie University’s Ben Spies-Butcher explains how increasing the…Ben Spies-Butcher, Lecturer in Economy and Society, Department of Sociology, Macquarie UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/90892012-09-24T20:20:51Z2012-09-24T20:20:51ZThere’s no silver bullet solution to Australia’s ageing workforce<figure><img src="https://images.theconversation.com/files/15730/original/66tgyfkb-1348191687.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Maintaining workforce participation in older workers has some benefits, but current labour trends are "age unfriendly".</span> <span class="attribution"><span class="source">Image from www.shutterstock.com</span></span></figcaption></figure><p><em>Welcome to Shades of Grey, a series from The Conversation that examines the challenges posed by Australia’s ageing workforce, Today, Monash University’s Veronica Sheen looks at the sustainability of older worker retention policies.</em> </p>
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<p>The facts of Australia’s ageing population are stark: around 13.5% are currently aged 65 and over, but by 2050 this age group will make up almost 23% of the population. There will be just 2.7 people of working age (15-64) compared to five now, for each Australian aged 65 years and over. </p>
<p>Taxation, social spending and economic growth are set to feel the pressure of the growing aged population, according to the last <a href="http://archive.treasury.gov.au/igr/igr2010/report/pdf/IGR_2010.pdf">Treasury Intergenerational Report</a>.</p>
<p>One response to these pressures is to require older people to work for longer. The eligibility age for the means-tested age pension <a href="http://www.fahcsia.gov.au/our-responsibilities/seniors/benefits-payments/age-pension">increases from 65 to 67 by 2023</a>, affecting everyone born after July 1 1952. The preservation age for superannuation increases from 55 to 60 years and <a href="http://www.ato.gov.au/super/content.aspx?menuid=0&doc=/content/60489.htm&page=10&H10">affects everyone born after July 1 1960</a>.</p>
<p>The Grattan Institute thinks <a href="http://grattan.edu.au/static/files/assets/c040e639/Game_Changes_Web.pdf">these changes don’t go far enough</a>. It recommends increasing both the pension eligibility age and superannuation preservation age to 70 years. It estimates that the resulting increase in older worker participation would contribute to economic growth in the order of $25 billion by 2022.</p>
<p>While these policy prescriptions to extend the workforce participation of older Australians are concerned with broad macroeconomic factors, I argue much more attention is needed to their practical application. Ideally, maintaining workforce attachment until older ages has a range of benefits for workers. Most of all, it increases income and savings for retirement. It may also mean that people can continue in work that is rewarding and stimulating, with benefits for their wellbeing and mental health. However, this congenial trajectory of working to an advanced age may be difficult for many workers to achieve.</p>
<p><strong>Age “unfriendly” workforce trends</strong></p>
<p>Current trends across the labour market are not very “age-friendly”, most particularly in the growth of precarious forms of employment as documented through the recent <a href="http://www.actu.org.au/Images/Dynamic/attachments/7626/Lives%20on%20Hold%20-%20Unlocking%20the%20potential%20of%20Australia%E2%80%99s%20workforce_v2.pdf">ACTU inquiry on insecure work</a> and by many scholars (see for example, <a href="http://www.federationpress.com.au/bookstore/book.asp?isbn=9781862878891">Beyond Employment</a>. Despite the projections of a labour shortage associated with population ageing, it is difficult to see that this will result in a reversal of these trends without much firmer policy and regulatory interventions as, for example, those proposed by the <a href="http://celrl.law.unimelb.edu.au/files/CELRL-Submission-Inquiry-InsecureWork-Final.pdf">Centre for Employment and Labour Relations Law</a>.</p>
<p>However, it’s expected that these firmer regulations and policies will be highly contested by employers who still have options of filling domestic labour supply shortages through technology substitution, moving activities off-shore, or importing workers with the characteristics they desire.</p>
<p>Insecure work consists of several main forms of <a href="http://www.google.com.au/url?sa=t&rct=j&q=&esrc=s&source=web&cd=57&ved=0CEcQFjAGODI&url=http%3A%2F%2Fwww.aph.gov.au%2FParliamentary_Business%2FCommittees%2FHouse_of_Representatives_Committees%3Furl%3Dewrwp%2Findependentcontracting%2Freport%2Fchapter2.pdf&ei=HwY3UL3qAoSTiAfT74GwAg&usg=AFQjCNFYp7nnObQ7Xu2jNfHDofzbgW0cGA">employment relationships</a>: casual or fixed term employee, independent or dependent contractors, labour hire, and outworkers. Each serves to reduce employer liabilities for cumulative leave and redundancy entitlements, (which are of most benefit to long term employees), training, and opportunities for occupational progression. They erode the <a href="http://www.ilo.org/global/standards/introduction-to-international-labour-standards/the-benefits-of-international-labour-standards/lang--en/index.htm">collective bargaining capacities of workers</a>. They serve to <a href="http://theconversation.com/labour-in-vain-casualisation-presents-a-precarious-future-for-workers-8181">commodify workers</a>, which means greater vulnerability to being treated in ways that are dehumanising. As I was told by midlife participants in my research on precarious employment…“you’re just a number”, “just a commodity”, “a piece of meat”, or “human battery hens” - hardly a very enticing proposition for keeping in work until you are 67 or even 70, if you can possibly avoid it. </p>
<p>It might be argued that more diverse forms of “non-standard” employment can suit older workers through reduced hours and greater flexibility. However, tough and highly competitive labour processes are often <a href="https://theconversation.com/toyotas-low-productivity-workers-and-the-problem-of-performance-assessment-6492">embedded in casual and contract employment relationships</a>. These labour processes are an important dimension of employment insecurity, enabling easy termination of employment on the basis of shifting performance indicators. They can also be used to dispose of older workers who may struggle to keep up the pace. Flexibility can be more an employer option around staffing levels than an employee choice to fit with lifestyle preferences for a “transition to retirement”.</p>
<p><strong>“Job insecurity is everywhere now”</strong></p>
<p>In his <a href="http://www.polity.co.uk/book.asp?ref=9780745622187">famous essay of the late 1990s</a>, sociologist Pierre Bourdieu observed that “job insecurity is everywhere now”. The situation has not improved in fifteen years. Job insecurity is closely linked to work intensification strategies which increasingly infect <a href="http://theconversation.com/cracks-in-the-ivory-tower-is-academias-culture-sustainable-8294">a wide range of occupations and professions such as the tertiary sector</a>, which Euan Ritchie and Joern Fischer say is “now characterised by excessive hours, unrealistic benchmarks, high levels of competitiveness and inflexible, family unfriendly work arrangements”. These practices are consistent with much of contemporary business strategy geared to continuous change in a fast-paced and competitive environment.</p>
<p>Older workers within organisations may be seen as an impediment to these changes that businesses require, “the dead wood” as the Australian Human Rights Commission documented in its <a href="http://www.hreoc.gov.au/age/hiddenbarrier/index.html">report on age discrimination</a>. </p>
<p>As <a href="http://www.amazon.com/The-Corrosion-Character-Consequences-Capitalism/dp/0393046788">Richard Sennett observed</a> in the Corrosion of Character, the problem is not that older workers lack skills and experience, but rather that malleability, risk-taking, and submissiveness are the preferred attributes of workers to facilitate rapid change. These qualities are more likely to be found in the young and inexperienced.</p>
<p>Contemporary employment conditions do not seem to be very conducive to maintaining workers well into their 60s or up to 70, as proposed by the Grattan Institute. One participant in my research, a former bank manager in her early 50s, told of how increasing demands within the banking sector affected her thinking about her work options:</p>
<p>“When I was in the bank, I had to write a million a month in housing loans so I was working 60 hours. I would go to all the shops, and people, do all the outwork as well, and work on a Sunday and now I don’t want that. Everyone I still know in the bank says it has got worse and tellers have their quotas each month.”</p>
<p>It is easy to see how business practices can be developed which are difficult for older workers to sustain. In addition, a wide range of jobs are simply exhausting, hard work with high risks of injury – labouring jobs, manual trades, paid and unpaid care work, cleaning, pick and pack, or even jobs that simply require a lot of standing up. There were several midlife women in my research who had no income or employment options except cleaning work. I could not imagine how they could maintain such employment - even part-time - until aged 60.</p>
<p><strong>Retirement from “good jobs” and the rest</strong></p>
<p>Participation rates for mature age workers <a href="http://grattan.edu.au/publications/reports/post/game-changers-economic-reform-priorities-for-australia/">have increased</a> in recent years although long term unemployment is an ongoing problem for a significant group. This reflects how hard it can be for older workers to <a href="http://www.theage.com.au/opinion/political-news/figures-add-up-for-matureage-workers-in-jobs-20120902-258hr.html">regain jobs once these are lost</a>. </p>
<p>Where mature age workers are in “good jobs” they will have options to stay in them. This group is most likely to have a reasonable degree of control over how they do their jobs and may also be in a position of seniority. This means that they may be less exposed to difficult performance demands. Ironically, policy interventions to keep them in work to advanced ages may largely be irrelevant, as they are most likely to have the means to retire whenever they wish. </p>
<p>Older worker retention policies will impact most harshly on those further down the jobs hierarchy whose working lives have not been so congenial. They will be forced into working longer than they expected or longer than they can. <a href="http://celrl.law.unimelb.edu.au/files/CELRL-Submission-Inquiry-InsecureWork-Final.pdf">Tighter labour regulations and policies</a>, in combination with education and training options that assist transitions to <a href="https://theconversation.com/social-policy-can-secure-a-better-future-for-working-women-5442">better occupations</a>, could all play a part to make working at an older age an easier and realistic option.</p>
<p>However, more will be needed. Young workers all become older workers in the end, and are vulnerable to burn-out. And, if older workers are required to keep working to advanced ages, then it must, at the very least, be in employment that they can do without compromising their health and wellbeing. Work should also provide opportunities for making best use of their skills and abilities. There is a broad debate and acceptance of the idea of environmental sustainability; it is time that this was expanded to include “employment sustainability”. </p><img src="https://counter.theconversation.com/content/9089/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Veronica Sheen does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>Welcome to Shades of Grey, a series from The Conversation that examines the challenges posed by Australia’s ageing workforce, Today, Monash University’s Veronica Sheen looks at the sustainability of older…Veronica Sheen, Research Associate, Political and Social Inquiry , Monash UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/78832012-09-23T20:35:54Z2012-09-23T20:35:54ZActive ageing is a risky labour market policy<figure><img src="https://images.theconversation.com/files/15719/original/x8tk2tp5-1348186103.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">An emphasis on longer working lives should be a policy aspiration, rather than an ideological straitjacket.</span> <span class="attribution"><span class="source">Image from www.shutterstock.com</span></span></figcaption></figure><p><em>Welcome to Shades of Grey, a series from The Conversation that examines the challenges posed by Australia’s ageing workforce. Today, Monash University’s Philip Taylor looks at the costs and benefits of lifting the workforce participation rate of older workers.</em></p>
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<p>In the past, older workers have borne the brunt of industrialised nations’ efforts to grapple with the effects of economic downturns, with policymakers encouraging their withdrawal from the labour market. They have been over-represented in declining industries, under-represented in those experiencing growth and affected by reduced demand for unskilled workers.</p>
<p>Earlier this year, the Australian Human Rights Commission released “<a href="http://www.hreoc.gov.au/age/publications/Working_past_our_60s_2012.pdf">Working Past Our 60s</a>”, a discussion paper on reforming workplace laws and policies for older workers. The report highlighted a number of institutional barriers to their employment, the removal of which would undoubtedly assist in lifting older workers’ employment participation rates to levels closer to those of other industrialised nations.</p>
<p>Organisational delayering, downsizing of operations and process re-engineering has fragmented traditional employment relationships and undermined the ability of older workers to sustain positions in the labour market. The restructuring of the global economy will continue to shape the employment landscape in ways that may not be conducive to their job prospects.</p>
<p>But current thinking is that early retirement is not tenable if industrialised economies are to remain competitive and to respond well to their ageing populations. The European Commission, for instance, has estimated that an increase of one year in the effective retirement age would reduce the expected increase in expenditure on public pensions by between 0.6 and 1 percentage points of GDP. The economic gains alone resulting from “active ageing” could thus be enormous.</p>
<p>But is this achievable without the risk of hardship for some older workers?</p>
<p>At first glance, working later like an attractive prospect for older workers when one considers benefits such as income and social participation. To achieve longer working lives, major reforms are needed and, in this regard, the present federal government has introduced a raft of generally useful initiatives. This latest official report identifies other, remediable factors that discourage the labour force participation of older workers.</p>
<p>But in the rush to promote the benefits of working later, the reality of older workers’ experiences should not be neglected. It is easy to point to gaps in arguments concerning the value of blocking off early exit pathways and instead exposing older workers to the labour market via promoting re-entry and retention. Unfortunately, past policy changes have often been driven more by concern for the economic consequences of population ageing than for the wellbeing of all older people.</p>
<p>While older workers may nowadays be somewhat closer to the labour market than they once were, their employability is often poor. Some unemployed workers will be, in effect, retired but lack the financial wherewithal to withdraw from the labour market. “Activation” (in terms of offering the “right” of older people to work) when there is no work to be had (due to age discrimination, a lack of skills currency, or failing health) may simply be condemning many to labour force participation, but with little or no prospect of meaningful opportunities.</p>
<p>Although policymakers may point to the individual benefits of working, if this is not quality work then this may reduce the prospect of a healthy and secure old age. Here the Australian Human Rights Commission report makes a contentious statement, arguing that “working is a protective factor against physical ill-health and poor mental health”. This is true to a point, but this surely depends on the kinds of work available for older people.</p>
<p>Flexible working has long been promoted in Australia and elsewhere as an approach that has appeal to older workers as they transition to retirement. But the problem lies in how flexibility is defined. It is not always possible for older people to exercise much choice and control over their labour market status. Many, for instance, find themselves trapped in involuntary part-time work for long periods, particularly women.</p>
<p>Unfortunately, the jobs to which older workers often gravitate do not fall into the “quality work” category. Despite the shift to a knowledge-based economy, many older workers are still found in physically demanding jobs, in work environments that carry occupational health and safety risks, or in roles that make it difficult to maintain skills currency. As a consequence, these older workers do not lend themselves to prolonged working lives, and instead face the serious prospect of social exclusion and poverty.</p>
<p>The European Commission has acknowledged these potential risks, noting that “transition rates into both unemployment and inactivity are considerably higher for older workers in jobs of low quality”. Evidence of continuing inequality in terms of types of employment opportunity would seriously undermine the case of those pointing to a simple measure of employment activity as indicative of changing labour market prospects for older people.</p>
<p>The new policy rhetoric of working until the age of 70 or beyond must also surely ring hollow to job-seekers aged in their 50s or those whose life expectancy, due to a combination of social and health risk factors, is likely to fall short of this or exceed it by very little.</p>
<p>A plausible scenario is one of increasing labour market insecurity and personal hardship as workers can no longer fall back on early retirement. One might say that there is even a “lost generation”, for whom the notion of working longer has come too late. Unfortunately, no program of activation could now make very many of them work-ready.</p>
<p>Much work could still be done to adjust official provision for the older jobless and those seeking a career change, to protect people from discrimination on grounds of age, to promote the benefits of employing older workers among business and, more generally, to recast work for an ageing society. However, a pragmatic balance is required between, on the one hand, maximising job chances, and on the other, an escape from diminishing prospects.</p>
<p>Labour markets may not adjust easily or willingly to the ageing of industrialised societies. The ongoing reconfiguration of national economies on the back of global shifts brings turbulent times ahead for at-risk groups such as older workers. Recognising this, an emphasis on longer working lives should be a policy aspiration, but not an ideological straitjacket. Certainly, any policy armoury that did not contain adequate protection for its older citizens would not be properly equipping them to meet the challenges of the modern labour market.</p><img src="https://counter.theconversation.com/content/7883/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Philip Taylor receives funding from the ARC, NSW Office for Ageing, Safe Work Australia and the Singapore Ministry of Manpower.</span></em></p>Welcome to Shades of Grey, a series from The Conversation that examines the challenges posed by Australia’s ageing workforce. Today, Monash University’s Philip Taylor looks at the costs and benefits of…Philip Taylor, Researcher on age and the labour market, Monash UniversityLicensed as Creative Commons – attribution, no derivatives.