Policies and Programmes to promote the Silver Economy in Europe

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Policies and Programmes to promote the Silver Economy in Europe

Pietro Checcucci

Roundtable on the link between Demographic Change, Decent Work and Silver Entrepreneurship Development in Asia and Europe

ITC ILO, 18 – 19 May 2017, Turin, Italy

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 The European situation: challenges and policies

 The Italian situation: focus on the labour market

 Active ageing practices within Italian enterprises

 Perspectives and conclusions

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 The European situation: challenges and policies

 The Italian situation: focus on the labour market

 Active ageing practices within Italian enterprises

 Perspectives and conclusions

(4)

Population ageing

Longevity

Low birth rate

Changes in intergenerational relationships

Alteration of the lyfe cycle

Need to

offset Need

to

offset

What dimensions

involved?

What dimensions

involved?

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Main policy drivers before the crisis

General measures

• Pensions reform

• Rising of mandatory pension age

• Reduction of early exit schemes

• Antidiscrimination measures

• Life-long Learning measures

More specific measures

• Incentives for job retention and hiring of older workers

• Incentives for delaying retirement

• Flexibility for older workers

• Awareness raising campaigns

Comprehensive

approach • Mix of pensions and fiscal incentives + flexibility in working time

Source: Eurofound, Impact of the recession on age management policies (résumé), 22 March 2012

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Main policy measures in response to the crisis

Early retirement reemerged together with reform of partial

retirement

Countries hardly hit by the crisis

introduced reforms mainly

addressed to financial stability

National policies do not still seem

to influence organization

level age management

practices

Source: Eurofound, Impact of the recession on age management policies (résumé), 22 March 2012

No policy changes in most countries

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Current challenges: suggestions from a project

Source: Scoppetta, A. et al. (2013): ‘Green paper: Central European Ageing Strategy; CE-Ageing Platform; Vienna, January 2013. http://ce-ageing.archiv.zsi.at/

Main results

Regional Ageing Platforms

Innovative measures/services for SMEs

development of a

CENTRAL EUROPE AGE-Strategy

Project consortium: 13 partners from 8 countries

Austria, Germany,

Slovenia, Hungary

Poland, Czech Rep., Slovak Rep., Italy

Project

Central European Knowledge Platform for an Ageing Society Central Europe Programme

Duration: 2011 – 2013

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Current challenges identified

Main challenges

in Central Europe

low labour force participation of particular age groups

adapt governance systems, (pensions, social services, health and care provision)

changes in family structures

integration of migrants

inequality across European regions as well as within regions

Source: Scoppetta, A. et al. (2013): ‘Green paper: Central European Ageing Strategy’; CE-Ageing Platform; Vienna, January 2013. http://ce-ageing.archiv.zsi.at/

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The challenges impact differently on territories

low labour force participation of particular age groups

adapt governance systems, (pensions, social services, health and care provision)

changes in family structures

integration of migrants

inequality across European regions as well as within regions

Rural areas in Eastern CE

Rural areas in Western CE

Urban CE areas

Spatial dimensions of the policy challenges

Source: Scoppetta, A. et al. (2013): ‘Green paper: Central European Ageing Strategy’; CE-Ageing Platform; Vienna, January 2013. http://ce-ageing.archiv.zsi.at/

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Current challenges: focus on employment

The challenge matrix Rural areas

in Eastern CE

• Lack of attractiveness and capacities of (less affluent) regions in transition economies with often poor infrastructure and few investments

• Lack of attractive jobs resulting in low labour force participation of particular societal groups (youth, women, older workers)

• Lack of ICT access

• Need for increase of human capital (education, life-long learning, training)

• Gender segregation

Rural areas in Western CE

• Need for increasing productivity

• Provision of well-paid job opportunities (e.g. good career prospects for young generation)

• Lack of and development of skilled workers and training opportunities (e.g. for the use of ICT based services)

Urban CE areas

• Polarisation of jobs and mismatch between education and jobs

• Lack of high-skilled workers due to the lack of high-quality and accessibility of schooling as well as of (insufficient) entrepreneurial education (missing talent identification)

• Need to attract new investors, ensure sufficient numbers of workers at all qualification levels as well as research and innovations experts

• Lack of knowledge transfer programmes (e.g. from experienced workers to youth, to less skilled, etc.)

• Gender segregation

Source: Scoppetta, A. et al. (2013): ‘Green paper: Central European Ageing Strategy CE-Ageing Platform; Vienna, January 2013. http://ce-ageing.archiv.zsi.at/

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 The European situation: challenges and policies

 The Italian situation: focus on the labour market

 Active ageing practices within Italian enterprises

 Perspectives and conclusions

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Positive trends in participation and employment

0,0 10,0 20,0 30,0 40,0 50,0 60,0 70,0

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Men Employment Rate Men Participation Rate Women Employment Rate Women Participation Rate Source: ISTAT, 2017

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Negative trends

 Between the 3° trimester of 2008 and the same period in 2016, unemployed 50-64 grew by 182,2%

(unemployed 15-64 grew by 86,3% )

 This trend hit more hardly men (+205,4%) instead of women (+151,5%)

 In 2016 unemployed 50+ represented 16,1% of

unemployed in the age class 15-64, (men 18,6% and women 13,3%), while they were 10,6% in 2008

 We still have a large gender gap: employment rate of

men 55-64 is 61,7%, while it is nearly 40% among

women

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Main policy measures before the crisis (1)

0 10 20 30 40 50 60 70

ESF National funds Regional funds Other resources

Share of ESF support and other funds

0,0 10,0 20,0 30,0 40,0 50,0 60,0 Enterprises

Civil servants Employees Unemployed or under job protection

measures

Others

Beneficiaries

0,0 10,0 20,0 30,0 40,0

Over 45 Over 50 Over 55 Over 60 Over 65 Other age class

Source: ISFOL, Le azioni locali per il prolungamento della vita attiva, ISFOL, 2011

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Main policy measures before the crisis (2)

Source: ISFOL, Le azioni locali per il prolungamento della vita attiva, ISFOL, 2011

83,2%

8,4%

1,1%

6,3%

1,1%

60,0%

11,5%

0,6%

10,3%

4,2%

6,1%

1,2%

6,1%

0,0% 20,0% 40,0% 60,0% 80,0% 100,0%

Employability - adaptability Demand/offer matching Self employment Crisis and firm restructuring Improvement of enteprise skills Information on incentives for working life prolongation Incentives for flexible contracts Improvement of a social environment favourable to gradual

retirement

Push factorsPull factors

Total ESF

Push vs Pull factors measures

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Main policy measures during the crisis

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 Implementation of pension reform of 2011 (higher mandatory age of retirement)

 Labour market reform (2012) with hiring incentives for 50+

 Labour market reform (Jobs Act 2014, 2015) with tax relief for hiring 50+

workers and women, extension of social safety nets etc.

 2016 Stability Law, facilitate the hiring of 50+ unemployed for more than 12 months

 2015 Stability Law, INAIL (National Institute for Insurance against Accidents at Work), task of facilitating the reintegration at work of persons with disabilities originating from their job

 INAIL enhance the risk assessment and management of work-related stress

 LLL/CVET - System of "Regional networks for learning" (CPIA-education centers for adults; Technical-vocational poles; University; AFAM-Higher Artistic, Music and Dance)

 Definition of a "National system of certification of skills" (Legislative

Decree n. 13 of 2013).

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The impact on organizations: INAPP surveys

Ageing work force in SMEs

Investigating solutions adopted for the maintenance, the professional

exploitation and the possible reintegration of older workers

Sample survey on 2,000 private SMEs (except agriculture); 10-249

employees

Sectors involved: industry, building, services with low added-value and services with high added-value

Age management in large companies

Analyze meaningful age management experiences, for facing the ageing of workers and skill obsolescence 152 large companies (telephone interview); 8 case-studies (in-depth interviews/focus groups).

Sectors involved: manufacturing, building, electricity, gas, water and waste management,

telecommunications, publishing, information technology, financial services

ISFOL, L’age management nelle grandi imprese italiane, ISFOL, 2015 INAPP, Etá e invecchiamento della forza lavoro nelle piccole e medie imprese italiane,

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The organizations level: SMEs (1)

The company observed an incresing of the average age of employees during last years

Older workers can be considered…

31,9 38,9

44,8 39,9 32,2 31,9 33,8 35,4 38,8 35,6 29,7

35,1

68,1 61,1

55,2 60,1 67,8 68,1 66,2 64,6 61,2 64,4 70,3

64,9

0% 20% 40% 60% 80% 100%

10 - 19 20 - 49 50 - 249

Industry Building Services (low added value) Services (high added value) North-west North-east Center South Italy

Yes No

7,8 10,7

13,8 10,1

18,0 11,8 8,1

10,4

71,1 69,8

66,6 65,8

62,4 68,1 69,1

68,0

21,1 19,5 19,6 24,1

19,6 20,1 22,8

21,6

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Services (high added value) Services (low added value) Building Industry 50-249 20-49 10-19 Italy

mainly a disadvantage neither one nor the other mainly and advantage

Source, INAPP, 2014

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The impact on organizations: SMEs (2)

Source, INAPP, 2014

50+ involved as tutor or coaches within SMEs (%)

Human resources strategies for age management – SMEs (%)

Attention to 50+ issues within Trade unions negotiations - SMEs (%)

56 16,2

8,4 5,9 3,4 1,9

0 10 20 30 40 50 60

Flexible working time Mixed organizational settings (older-

younger) and job rotation Work-family balance Adaptation of the work place Distance working (tele-work etc.) Organizational welfare (recreational clubs, associations of workers etc.)

1 1,9

5,7

1,4

4,4

7,7

0 2 4 6 8 10

10-19 20-49 50-249

Within 3 years Currently

35,5%

36,2%

35,3%

39,1%

39,9%

32,2%

21,1%

36,0%

13,2%

13,3%

15,5%

15,0%

14,7%

14,2%

12,2%

14,3%

30,8%

32,1%

27,8%

27,5%

27,9%

29,7%

38,0%

29,4%

14,7%

13,6%

15,0%

13,6%

11,6%

18,4%

22,8%

14,5%

5,7%

4,8%

6,4%

4,8%

5,9%

5,4%

5,9%

5,8%

0% 20% 40% 60% 80% 100%

Industry Building Services Advanced services 10-19 employees 20-49 employees 50-249 employees Total

Never Rarely Sometimes Often Always

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The impact on organizations: SMEs (3)

Source, INAPP, 2014

39,5%

25,6%

22,8%

21,2%

18,6%

16,9%

16,3%

9,9%

7,9%

4,9%

2,4%

Specific task related skill

Basic ICT

Relational skills

Foreign languages

Team-working skills

Specializide ICT skills Problem solving

Managerial skills Administration Oral and written communication

Reading, comprehension and basic math skills

Skills and competences useful in the perspective of a longer working life

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The impact on organizations: Large companies (1)

Source, INAPP, 2014

1. awareness of the problem

2. analysis of the demographic structure of the company

3. recognition of the mature staff needs

4. design and launching of pilot projects

5. results verification and evaluation for proper corrective actions implementation.

General aim: maintaining the overall company

profitability by improving worker’s productivity

Three primary areas of action:

 training

 experience enhancing

 intergenerational dialogue

Elements of strength:

positive approach communication convenient aims

assimilation in plant-level bargaining

economic sustainability monitoring & evaluation

favorable external environment

Elements of strength:

positive approach communication convenient aims

assimilation in plant-level bargaining

economic sustainability monitoring & evaluation

favorable external environment

The standard path

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The impact on organizations: Large companies (2)

Source, INAPP, 2014

 16% of companies pay specific attention to hiring 50+ workers (sometimes due to public incentives or CSR of the company)

 26,3% of companies provide specific training for older workers

 15% formally plan intergeneretional skills transfer by means of mentoring, coaching, tutorship for newly recruited staff or in case of job rotation

 88% acdopt management practices to enhance motivation and productivity of 50+ workers , among which:

 intergenerational dialogue

 recognitions and awards

 people caring and tasks re-design

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The impact on organizations: Large companies (3)

Source, INAPP, 2014

Promising practices were mainly addressed to:

• selection and hiring of personnel

• training

• health and safety

• career management

• retirement Promising Practices

Actions which involved some dimensions, but not recognised yet as age

management strategies

Practices focused primarily on career path

Training as a tool for connecting the various dimensions Training as

a tool for

connecting

the various

dimensions

Promising practices

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The impact on organizations: Large companies (3)

Only a few of the companies (15) provide the entire range of age management practices covering all the dimensions concerned

Common features:

 Very large enterprises

 More than 30% of workers +50

 Northern part of Italy

 Part of larger corporates

 Mainly in the service sector (e.g. financial brokerage)

 Mission and organization not so much hit by the crisis

 CSR culture

 Innovative

 Skills oriented (training is considered strategic)

Source, INAPP, 2014

The very best practices

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A best practice involving SMEs: ‘Flexibly Beyond’ Project

The partnership:

POLITECNICO CALZATURIERO - project leader Formindustria Emilia Romagna - training institution Cisita of Parma - training institution

For.P.In - training institution

University «BICOCCA» of Milan – Department of Informatics University of Ferrara – Department of Economics

Unioncamere Eurosportello Veneto- Promotional Institution CISL/CGIL – Trade Unions

The participants:

SMEs from Footwear and Textile Sector

More than 200 45+ workers

Veneto & Emilia Romagna Regions The participants:

SMEs from Footwear and Textile Sector

More than 200 45+ workers

Veneto & Emilia Romagna Regions

Aim of the project:

To design and test innovative models of business organization and operational instruments in order to:

 Develop in the manifacturing sector both the business and the value of older workers

 Experiment alternative models of work organization to enhance senior worker and extending their working life

 Convey cultural changes in business environment

 Experiment models for intergenerational transfer of skills and competences

http://www.politecnicocalzaturiero.it/

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‘Flexibly Beyond’ Project structure

Analysis of the production

process Analysis of

the production

process

Analysis of the specific job position

Collection of tacit skills from single

workers Collection of

tacit skills from single

workers

Experience of the section

head Experience of

the section head

Point of view of the fashion

designer Point of view of the fashion

designer

Training of younger employees Training of younger

employees

Re-training of other employees Re-training of other

employees

Vocational Training within the Polythecnic Vocational Training

within the Polythecnic Vocational Training

for unemployed younger workers Vocational Training

for unemployed younger workers Enterprise

Enterprise

Polythecnic Polythecnic

Higher Technical Schools Higher Technical

Schools Public High

Schools

Cloud knowledge base available for

teacher and traininers to develop courses Cloud knowledge base available for

teacher and traininers to develop courses

Portfolio and CVs

implemented by students Portfolio and

CVs

implemented by students Mapping of processes

and skills Inventory of professional profiles Mapping of processes

and skills Inventory of professional profiles

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‘Flexibly Beyond’ Project: points of strenght

New inputs for learning activities: new demands for vocational training and the development of «organizational competences» in order to connect tradition and innovation in a business continuity perspective

Holistic and «preventive» approach

Win Win strategy in prolonging working life

(envolvement of a lot of stakeholders, considering together Business and workers’

development)

Cultural change in knowledge management

approach

: from the controll and ownership of key skills to their production via intergenerational exchange

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 The European situation: challenges and policies

 The Italian situation: focus on the labour market

 Active ageing practices within Italian enterprises

 Perspectives and conclusions

(29)

Activation of the potential: the contribution of AAI

Employment

• Employment rate for the age group 55–59

Participation in society

• Voluntary work by older adults (aged 55+)

• Care to children, grandchildren by older population (aged 55+)

• Care to older adults by older population (aged 55+)

• Political participation of older population (aged 55+)

Independent, healthy and secure living

• Physical exercise for older adults (aged 55+)

• Access to health and dental care (for those aged 55+)

• Independent living arrangements (for those aged 75+)

• Relative median income (for those aged 65+)

• No poverty risk (for those aged 65+)

• No severe material deprivation (for those aged 65+)

• Physical safety (for those aged 55+)

• Lifelong learning (for those aged 55–74)

Capacity and enabling environment for active

ageing

• Life expectancy at age 55

• Share of healthy life expectancy at age 55

• Mental well-being (for those aged 55+)

• Use of ICT by older adults (aged 55–74)

• Social connectedness of older people (aged 55+)

• Educational

attainment of older people (aged 55+)

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Labour market imbalances: a picture from AAI

Belgium 2010

Belgium 2014 Bulgaria 2010

Bulgaria 2014

Czech Republic 2010

Czech Republic 2014

Denmark 2010

Denmark 2014 Germany 2010

Germany 2014 Estonia 2010

Estonia 2014 Ireland 2010

Ireland 2014 Greece 2010

Greece 2014

Spain 2010

Spain 2014

France 2010 France 2014

Italy 2010

Italy 2014

Cyprus 2010

Cyprus 2014 Latvia 2010

Latvia 2014 Lithuania 2010

Lithuania 2014

Luxembourg 2010 Luxembourg 2014

Hungary 2010

Hungary 2014

Malta 2010

Malta 2014

Netherlands 2010

Netherlands 2014 Austria 2010

Austria 2014 Poland 2010

Poland 2014

Portugal 2010 Portugal 2014 Romania 2010

Romania 2014

Slovenia 2010

Slovenia 2014

Slovakia 2010 Slovakia 2014

Finland 2010 Finland 2014

Sweden 2010

Sweden 2014 United Kingdom 2010

United Kingdom 2014 Croatia 2010

Croatia 2014

5 10 15 20 25 30

15,0 20,0 25,0 30,0 35,0 40,0 45,0 50,0

NEET

AAI Employment

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Common findings

 Demographic ageing is still nearly unexplored by Italian companies

 Attention on workforce ageing grows by increasing company size

 Age management stabilized strategies only found in largest companies

 Largest companies have used human resources development to face the crisis

 Age doesn’t represent a parameter to determine the worker’s efficiency

 Training and skill upgrading play a key-role

 In a long-term perspective the development of a working-life cycle and a diversity management approach are envisaged

 Companies need tools for demographic checking, age structure analysis, project monitoring and evaluation

 Older workers employability requires

multidimensional actions both within

enterprises organizational settings and in

welfare policies

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Issues to be still addressed

Move from blocking strategy towards a development approach

Awareness raising Specific national and local

negotiation among social partners Company welfare mix

Support SMEs

Measures for local labour markets

Tailored active labour market policies

Increase women participation

Address long-term unemployment Interventions on firm crisis

Fight against irregular work Improvement of PES

Self-employment measures

Work-related resources availability

Recruitment

Health and safety at the workplace

Career

development Training

Gradual retirement

Organizational flexibility

Intergenerational transfer of

knowledge Private pension schemes

sustainability

Work after

retirement

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The impact of the industrial revolution 4.0

• Storage and exploitation of large quantities of information about users

Big data

• Web 4.0 - Objects communicate with each other updating their routines

Industrial Internet of Things

• Flexible and continuous adaptation of industrial production

Cloud

Manufacturing

• Robot and Artificial Intelligence

Advanced Automation

• 3D Print

Additive Manufacturing

• Various devices that can be worn

• Augmented reality

Wereables

The impact of technologies is

not neutral

Consequences on the offer

side

Consequences on the quality

of labour

Impact on welfare

Source: Dario Guarascio, Stefano Sacchi, Digitalizzazione, automazione e futuro del lavoro, INAPP, 2017

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Silver economy and the life cycle

We should probably address e reconciliation among the opportunities opened up by technology, in terms of silver economy, and the life cycle

Tailored financial services and

literacy Skills

transfer

Enterprise creation

Overcoming the digital

divide

New welfare provisions

Assistive technologies

Life-long learning Green

jobs

Health

Thank you for attention!

Pietro Checcucci – p.checcucci@inapp.org

Policies and Programmes to promote the Silver Economy in Europe