Presentation for the launch on the 21 October 2015

1. WORKING BETTER WITH AGE
REPORT ON OLDER WORKERS IN DENMARK
Copenhagen, 21 October 2015
Mark Keese, Head of Division
Anne Sonnet, Project Leader
Directorate for Employment, Labour and Social Affairs, OECD

2. 1. Working Better with Age: the OECD
review
2. Major challenges in Denmark
3. Key recommendations
Outline of the presentation
2

3. WORKING BETTER WITH AGE
THE OECD REVIEW

4. 2003-2006 review on older workers
 21 country reports (including Denmark in 2005):
Ageing and Employment Policies
 And a synthesis report (2006): Live Longer,
Work Longer
 Agenda for policy actions in three broad
areas to encourage work at an older age:
1. Rewarding work
2. Changing employer practices
3. Improving employability
4

5. • Comparative policy review of recent reforms and
measures and a scoreboard for older workers:
www.oecd.org/els/employment/olderworkers
• Seven country case studies: Norway (June 2013),
France (January 2014), Netherlands (April 2014),
Switzerland (October 2014), Poland (March 2015),
Denmark (October 2015) and Korea (2016)
• Recommendation on Ageing and Employment Policies to
promote longer working lives to be presented at the
OECD Labour Ministerial meeting in January 2016
• Synthesis report Working Better with Age (2016)
A follow-up review launched in 2011 to assess
progress and what still needs to be done
5

6.  In response to the OECD recommendations in 2005,
Denmark implemented several substantial policy
initiatives to encourage work at an older age.
 The aims of this report are to:
 Assess these policy initiatives and their impact on the
employment situation of older workers.
 Identify specific areas for further action, covering
both supply- and demand-side aspects.
Ageing and employment policies:
Denmark
6

7. MAJOR CHALLENGES IN DENMARK

8. The employment rate of people aged 55-64 is above
the OECD average for both men and women, but well
below the best achievers
Employment rates (55-64), OECD countries, 2014
As a percentage of the population aged 55-64
Source: OECD Labour Force Statistics database.
8
0
10
20
30
40
50
60
70
80
90
100
Men Women

9. Employment in the age group 55-59 was
hit by the crisis
Percentage points change in employment rates (55-59),
OECD countries, 2007-2014
Source: OECD Labour Force Statistics database.
9
-15
-10
-5
0
5
10
15
20
25

10. But employment in the age group 60-64
increased between 2007 and 2014,
following (early) pension reforms
Percentage points change in employment rates (60-64),
OECD countries, 2007-2014
Source: OECD Labour Force Statistics database.
10
-10
-5
0
5
10
15
20
25

11. However, working after the age of 65 remains
uncommon
Employment rates of population aged 65-69, selected countries, 2002-2014
As percentage of the population aged 65-69
Source: OECD Labour Force Statistics database.
11
0
5
10
15
20
25
30
35
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
DNK USA OECD EU21 SWE

12. Denmark is among the hiring champions, but with
a big gap between prime-aged and older workers
Hiring rates by age group, selected countries, 2014a
Percentages
a) The hiring rate is the ratio of all employees aged 55-64 with job tenure of less than one year to the
total number of employees.
Source: OECD estimates, based on the European Union Labour Force Survey (EU-LFS).
12
0
5
10
15
20
25
55-64 25-54

13. There is still a perception of age
discrimination in the labour market
Age discrimination in the workplace, European countries, 2011
Percentages
Source: Eurobarometer 2012.
0
5
10
15
20
25
30
35
40
45
Personally discriminated Have witnessed discrimination
13

14. The older unemployed face a higher risk of
long-term unemployment than those aged 25-54
Incidence of long-term unemploymenta by age groups, OECD countries, 2014
As a percentage of unemployed by age
14
AUS
AUT
BEL
CAN
CZE
DNK
EST
FIN
FRA
DEU HUN
ISL
IRL
ISR
ITA
JPN
LUX
MEX
NLD
NZL
NOR
POL
PRT
SVK
SVN
ESP
SWE
TUR
GBR
USA
OECD
EU21
0
10
20
30
40
50
60
70
80
0 10 20 30 40 50 60 70 80
Aged 25-54
Aged55+

15. The seniority element in wages is more
pronounced than on average in the OECD area
Age-wage profilea in selected countries, 2012
Hourly wage at 25-29 = 100
a) The figures show the relationship between age and hourly wages, controlling for gender,
immigration status of parents, industry, occupation, permanence of the contract, part-time work, years
of job tenure, years of education and two different measures of skills.
Source: OECD estimates based on PIAAC data. 15
90
95
100
105
110
115
120
125
130
135
140
25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64
DNK OECD FRA DEU

16. KEY RECOMMENDATIONS

17. • Enhance work incentives for people
approaching the retirement age and even
beyond
• Provide more information to help people
make well-informed choices between work
and retirement
• Ensure that transitory “bridging” benefits are
not used as alternative pathways to early exit
from the labour market
Make work more rewarding
17

18. • Ensure greater age-neutrality in the
functioning of the labour market
– Getting the balance right between job security for
older workers and a flexible labour market could
prove to be more challenging with the postponement
of statutory retirement.
– Prevent older job applicants from being discriminated
against based solely on the fact that they are close to
the retirement age.
Encourage employers to hire
and retain older workers
18

19. • Move ahead with abolishing mandatory
retirement age in the public and private sectors
– This is especially crucial in those sectors and occupations
facing labour shortages, such as the health and care
sector and the trade sector.
• Focus wage-setting procedures more on
performance and skills and less on age and
tenure, particularly in the public sector
• Evaluate which measures work best to promote
longer working lives and create networks for
sharing experience among employers
Encourage employers to hire
and retain older workers (cont.)
19

20. • Improve access to suitably flexible work
arrangements
– Encourage social dialogue to better integrate
working-hour arrangements, organisation of work
tasks, technologies and personnel management
• More work-focused continuous learning
– Training courses should have a short or flexible
payback period
– Give VET teachers incentives to regularly spend time
in a firm within their professional field
Strengthen the employability of
older workers
20

21. • Co-ordination between health care and employment
services could be improved to increase the likelihood
of return to work
– The potential of the “Senior starter kit” should be
evaluated
• Encourage transitions back to regular jobs and
prevent inactive periods and early exit from the
labour market
– Phase out seniorjobs or at least reform them to give
stronger incentives to return to regular jobs
– Provide regular assessment of employability for
flexjobs
Strengthen the employability of
older workers (cont.)
21

22. Thank you!
For further information:
Mark Keese mark.keese@oecd.org
Anne Sonnet anne.sonnet@oecd.org
http://www.oecd.org/els/employment/olderworkers
22