Theme sheet Published: 2006-11-19
A labour market for all age groups
Employers currently refrain from employing older workers and many people
don’t want to work after the age of 60.
– How can we create an
attractive labour market for people of all ages that recruits according to
competence and not age?
What does Confederation of Swedish Enterprise want?
Enhanced economic incentives for work and business for all age groups. New solutions based on options and voluntary agreements to remove obstacles from the labour market that stop older workers from getting or keeping a job.
What is the situation today?
Many older employees want to stop working before retirement age. It is through people working though that the quality of health care can be ensured for those people unable to work. Supply of labour is therefore important and older workers are needed on the labour market. Failure to use such competence is a waste of resources. Such a lack of older workers shows that something is wrong with the labour market.
Sweden’s employment rate for older workers is high from an international perspective. Nevertheless, it tends to decrease with increasing age. Today’s retirement age has actually fallen to 62.5 years. With older people living longer, more healthy years of life are available. However, Swedish citizens now work less than ever before. Longer education means a later entrance to the labour market.
If older workers used their healthy years for working, to a greater extent, Sweden would not have a lack of labour in the future.
What is required?
- Create labour market rules, unemployment benefits and health insurance so that it pays to work.
- Increase mobility on the labour market. Employment rules (such as last in first out) causes difficulties for older workers. Few dare to change jobs due to the risk of losing their employment security.
- Give older employees leave of absence to try another job.
- Remove the employer’s obligation to pay 15 per cent of sickness benefit. This regulation makes older workers less attractive on the labour market.
- Facilitate possibilities for making agreements about individual and local solutions concerning wages, work time and terms of employment. Generous rules for temporary employment could result in older people getting work.
- Change the collective pension agreement (ITP plan) for white-collar workers. Employing a 55-year-old is currently more expensive than employing a 35-year-old.
- Make Sweden’s pay formation more flexible. Encourage local pay agreements between individuals and employers. After the age of 60, employees could receive lower pay if work is adapted to their demands and needs.
- Encourage and facilitate business in all age groups. More opportunities for starting a company expands the labour market for older workers as well.
- Attitudes must change. We need to see older workers as a resource – not as a burden.
