“Who will hire me at my age?” This sentiment is not unfounded, as it resonates strongly among middle-aged people when looking for a job or considering a job change. Concerned about their future employment, the data is not encouraging. More than 800 thousand people over the age of 50 are unemployed in Spain. That is 30% of the total unemployment in the country. Moreover, it is a figure that has almost doubled in the last 10 years. In 2013, the rate of unemployed people in this age group was 18%. Moreover, according to the latest data published by the National Institute of Statistics (INE), more than 50% of long-term unemployed people, both in Spain and in all European Union countries, are people between the ages of 50 and 59.
“Companies do not see the possibilities of top talent and what contributions their experiences can make,” he says. Manel Fernandez Jaria, professor of Economics and Business Administration at the Open University of Catalonia (UOC). The teacher argues for the benefits of encouraging a cultural change in companies that encourages the recruitment of such talent. Because if it is not done out of pleasure, it will be done out of necessity as society grows older. The majority of the Spanish population consists of people between the ages of 40 and 59. The elderly constitute the immediate future of the workforce system, to an equal or greater extent than the young.
Veterans, in short, are workers whose aging is more pronounced. But they won’t be able to retire anytime soon: The average age for this is 65. However, at this age, only those who have paid premiums for 37 years and 9 months can retire with 100 percent of their pension. Otherwise, the legal retirement age is 66 years and 4 months, provided that 36 and a half years of premiums have been paid.
And the system is shifting towards extending operating life. Because he has no choice. According to INE’s 2022-2072 Population Projections report, almost a third of the Spanish population will be over the age of 60 in 2030. Therefore, among other issues, the age of access to retirement has not increased since 2013. Next year, this period will be 66 and a half years, and in order to retire at the age of 65, premiums will have to be paid for 38 years. And this adds up and continues until 2027; We will need to pay premiums for 37 years to retire at 67, and 38.5 years to retire at 65.
Forgotten by law
If Spain continues to lead the ranking of European Union countries with the highest elderly unemployment rate, it will be difficult for older people to contribute enough to receive a decent pension. The group’s employability rate in Spain is 10 points below the European average. Second senior talent map reaches 60% by 2022Published by Adecco.
On the other hand, what is expected from them is this: that they work at the same level as younger employees, regardless of the level of physical demand in your job. In this sense, Dey No. 31/1995 of 8 November on the prevention of occupational risks “does not spare a single word for senior workers”, says the professor. The law provides for the adaptation of jobs to other groups, but “it forgets about the elderly.” So the reality is, “you can be a 65-year-old and still work as a mason on a construction site,” he concludes.
In summary: Unemployment is concentrated among those at the extreme ends of the population pyramid, the elderly and the young. Two segments that are very different from each other, but should not confront each other in practice, but should complement each other. This is what Adecco professionals point out. “Old people do not take the jobs of young people -states the text- but they occupy places that can never be filled with young people due to lack of education, experience and numbers.”
Juan Pablo Riesgo, partner in charge of EY insight knowledge centre, argues that by increasing the percentage of senior employees in the market, “more value will be created in the economy and these resources created will have a positive impact on economic growth”. “This will increase demand for workers of all ages, including young people.”
Growing since 2008
But senior employment in Europe has increased every year since 2008 “due to the general aging process and the extension of working life.” The most significant part of those employed is concentrated in the age group of 55-59. After 60 the rate collapses and “Decreases to insignificant values between the ages of 65 and 69” says the research.
Among these active workers, with the exception of Spain and Portugal, those with a secondary level of education are increasingly gaining ground. And in all regions, salaried workers outnumber self-employed workers. Despite this, self-employment is gaining more momentum among veteran workers than any other age group. “There are one million self-employed seniors compared to 200,000 self-employed young people, but we are only talking about youth entrepreneurship,” he criticizes Inaki Ortega, Doctor of Economics and author of The Gray Hair Revolution (Gestión 2000, 2018). “From the age of 60, almost the only option to continue in the labor market is self-employment.”
In fact, older people who employ workers in their care subsequently withdraw from the labor market. And entrepreneurs in this group create more jobs than young people. According to BBVA Research’s study based on OECD countries, The higher the activity rate of older workers, the lower the youth unemployment rate.. Iceland’s situation is clear: in the first 10 years of this century, youth unemployment was half that of Spain and twice the activity rate in the elderly population.
Given this panorama, there are multiple policies companies can implement as they adapt to this new high-end reality. This is what EY promotes. They suggest using technology to make the movement of these workers less challenging. Promoting remote workingfor example and Replacing travel with conferences. This will also help the group create flexible check-in and check-out times, create time banks, implement compressed working hours on Fridays and facilitate shift changing between workers.
Although he goes further. At EY, they advocate the need to “develop new professional career models that draw on the experiences of older people in a function other than the executive career.” Let them train the youngest workers. Using their experience and knowledge to guide young people.
What about administrations?
Governments also have a lot to say. Management for partner responsible for EY Insights “Incentives for companies to facilitate the retention of senior employees It also includes assistance programs that allow knowledge transfer from older workers to younger ones, and incentives for workers to “establish longer-term careers and encourage them to persist in the labor market after reaching the legal retirement age.” “.
In this context, the Mapfre report draws attention to the need to implement legislation that “considers retirement as a right, not a duty” and facilitates “at least voluntary” work above the retirement age. He also acknowledges that the road ahead in Spain will be longer than in other European Union countries because “some comparative delay“With them, especially Sweden and Germany.
Employers are also finding solutions to this problem. The newborn Conpymes, founded in 2021 as an alternative to the historical asset, claims to work in this direction. Thus, it encourages the creation of what are known as blind CVs as “the only way to apply for jobs” because issues such as personal image, gender and age are not taken into account. Among other policies, the employers’ association also calls for an end to the “violation of fundamental rights” that employment platforms allegedly carry out through opaque operating algorithms. “There is evidence of this A senior has a 99.99% chance of being kicked out by these algorithmsfor reasons attributable only to age discrimination.”
Age discrimination (a term compiled by the Royal Spanish Academy (RAE) as discrimination based on age, especially against older or older people) is behind 63% of unemployment benefits paid by the government. José Maria TorresPresident of Conpymes, with data from last year.
This discrimination is behind the annual loss of 5% of GDPdepending on the employer. Essentially, since there are twice as many people over 50 in Spain as under 18, the generational change that naturally occurs in companies becomes, in Torres’ eyes, “impractical.” If a solution is not found, “there will be unsustainable increases in social spending.”
CEOEIt reported that it was working with EAE Business School on a report in July to diagnose and identify the most in-demand functions and skills in the field of employability, particularly based on senior workers. In fact, it has a commission specialized in analyzing, monitoring, raising awareness and supporting the opportunities created by the economy in relation to people over 50.
A recently published study by CaixaBank states: 64 percent of older people believe there are “prejudices” against them in Spain. They think there should be “more value” placed on talent and senior experience and, above all, a lack of senior references that inspire other employees to stay active in the workplace. However, 66% of those surveyed feel they are in a position to act as professionals who can be consulted. Improving your technological skills is undoubtedly the biggest challenge facing such workers.
The biggest handicap: technology
Mastering technology is a skill practically inherent in young people growing up at the same time as digitalization. This is a set of information that seniors need to know how to collect, otherwise they run the risk of becoming obsolete and no longer attractive in the eyes of companies. He acknowledges that “it is now difficult for someone who is not familiar with new technologies to work in professions that require a high level of digital sophistication.” Riskfrom EY. It is therefore necessary to “encourage their permanent requalification”, he emphasizes.
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“It may seem more valuable to look for younger people who already have these skills. But seniors can provide flexibility to the organization; experience has given them more connections, more leadership skills and more loyalty,” the professor says. It is important to understand this Rotation in companies often occurs at an early age.. According to different studies, more than a third of voluntary departures from companies occur among the younger generations.
Lifelong education of Spanish senior workers is a pending issue “Older people must realize that no matter how attractive advancing the official retirement age may seem, it is economically unfeasible and detrimental to their physical and emotional health,” they concluded. Mapfre experts.