Eurostat data from 2020 indicates that the employment rate in the 55 to 64 age group in the European Union was approximately 60%, which is lower than the employment rate of younger age groups. Still, in 2022, this figure was 62%, a slight increase compared to previous years. However, Eurostat data from 2023 shows an increase in the duration of unemployment among older workers.
On average, unemployed individuals in the 55+ age group spend about 14 months searching for work. Only about 12% of people aged 55 and over participate in lifelong learning activities, which has slightly increased compared to previous years but remains lower than the participation rate of younger workers (approximately 21%).
These data from 2022 and 2023 reflect the ongoing challenges associated with employment in the 55+ age category, as well as slight improvements in some indicators. Although the employment rate and lifelong learning activities have slightly increased, discrimination, health problems, and long-term unemployment remain significant barriers for this age group.
Currently, we often encounter a situation where employers complain about a lack of qualified workers in the labour market, yet job seekers, especially those aged 55 and over, struggle to find suitable employment because companies prefer younger candidates. Sometimes seniors have to apply for less qualified jobs than their professional experience warrants. Why is this a problem, and how can it be solved?
People aged 55 and over are an integral part of the labour market in Latvia, and Europe as a whole, and given the current demographic situation in Europe, the number of people in this age group is only going to increase shortly, and this age category still has untapped economic potential.
What hinders effective employment relations between workers aged 55 and over and employers? What challenges do both business representatives and seniors face?
Establishing effective employment relations between workers aged 55 and over and employers can be challenging for several reasons. The main challenges faced by both employers and seniors are discussed below.
Challenges for employers:
- Stereotypes and prejudices – Employers may hold prejudices against older workers, believing they are less adaptive to new technologies or less effective compared to younger workers. Older workers may also be perceived as less motivated to learn and adapt to new work methods.
- Health and capability concerns – Employers may worry about health issues more common among older workers and the potential for increased absenteeism from work. There may also be concerns about long-term productivity decline.
- Adaptation and training costs – Company managers may believe that more resources and time are needed to train older employees for new tasks or technologies, and adapting to the company culture may take longer and be more expensive.
Challenges for workers in the 55+ age group:
- Weak digital skills – Older workers may struggle to acquire new technologies and digital skills often required in modern workplaces. Lack of proficiency in information technology limits their competitiveness.
- Prejudice and discrimination – Seniors often face discrimination in the job market, making it difficult to find work or advance in their careers. Age discrimination can also result in lower wages and fewer career advancement opportunities.
- Health problems – Older workers may have more health problems that affect their ability to work and their stability. Declines in physical and mental capabilities can pose challenges in the workplace.
- Inflexibility - Transitioning to a new work environment can be challenging for seniors who have worked in a different environment with a different work culture for a long time. The shift from traditional work methods to modern and technology-oriented work methods can be challenging.
Knowing all these challenges, it is necessary to find solutions, and overcoming them requires collaboration between both parties.
What can help workers in the 55+ age group?
- Training – Providing training programs and learning opportunities for older workers to develop necessary skills and technological knowledge. Tailored learning programs for different age groups to facilitate more effective knowledge acquisition.
- Flexible working conditions – Offering flexible working hours and remote work opportunities can help older workers maintain their work capabilities and balance work with health requirements. Adapting workplaces to the needs of older workers.
- Mentoring and support programs – Establishing mentorship programs where older workers can share their experience and knowledge while receiving support in acquiring new skills. Social support and inclusion in the work environment to make older workers feel valued and motivated.
- Promotion of age diversity – Actively promoting age diversity in companies to create an inclusive work environment and combat age discrimination. Reducing stereotypes and fostering a positive attitude towards older workers.
By addressing these challenges, a more inclusive and productive work environment can be created where all workers are valued regardless of their age. In the next article, we will discuss why it is worth and indeed necessary for companies to choose and hire people aged 55 and over.