OECD chief says we must encourage older workers to stay in the job force

“In an era of rapid population aging, we can no longer affordpolicies, employment practices and attitudes that discourage work at anolder age. They not only deny older workers the choice of when and howthey should retire, but are costly for business, the economy andsociety.

The key message that emerges from the OECD’s work on population agingis that it is both a challenge and an opportunity. If nothing is done,population aging poses serious economic and social challenges. But itis also raises the prospect of longer, more prosperous lives, ifincreases in longevity are matched by longer working lives.

We are living longer and healthier lives on average than previousgenerations. If we have the courage to change our outdated policies,attitudes and employment practices with respect to work at an olderage, we should be able to enter a virtuous circle where longevitypromotes activity, and activity, in turn, promotes wealth andwell-being.

But if nothing is done to promote better employment prospects for olderworkers, the number of retirees per worker will double over the next 50years in OECD countries. This will place severe strains on thefinancing of social protection systems. Labor force growth has been animportant contributor to economic growth in the past; but this willslow considerably over the next 50 years and in some OECD countries thelabor force could even shrink. We have projected that Japan’s totallabor force could shrink by over one-third between now and 2050.Recruitment difficulties will also increase. In Europe, the number ofworkers retiring each year is likely to exceed the number of youngerpeople entering the workforce by more than one million from around 2020onwards. Employers may face even greater recruitment difficulties inthe future in specific sectors such as health care.

To help meet these daunting challenges, work needs to be made a moreattractive and rewarding proposition compared with the siren songs ofearly retirement. But how can this be achieved? The OECD’s 2006 report,Live Longer, Work Longer, offers some answers based on its 4-year studyof aging and employment policies in 21 OECD countries. It shows thatthere are three key factors discouraging older people from work, whichneed to be tackled urgently.”

Source and more:  AARP International, http://www.aarpinternational.org/resourcelibrary/resourcelibrary_show.htm?doc_id=727357