Ageing, Employment and Retirement Policies in Norway

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1 Ageing, Employment and Retirement Policies in Norway Bjørn Halvorsen & Åsmund Lunde EU Mutual Learning Programme: "Measures to address Labour Market Segmentation" Lubljana, Slovenia November 10, 2015

2 High and increasing Senior Employment Rates in Norway Norway Age group EU (21) Age group ,4 78,4 79, ,0 58,8 63, ,7 22,2 27, ,2 58,4 65, ,0 28,9 35, ,0 10,3 11,7 Gender Gap* Gender Gap* *W/M % 55-64) *W/M % 55-64

3 Senior Employment and Labour Market Inclusion Policies - NORWAY Economic Policy with Employment Focus Universal Active Labour Markets Policy with priorities Tripartite cooperation for an Inclusive Worklife (IW/IA) Goal no 3: prolonging worklife: Increase of ½ year per 4-year periode Pension reforms from : NIS Old Age and Disability Pension. + Enterprise Pensions Increase Upper Age Limits in the Working Life Increased from 70 to 72 years from july Further increase to 75 is beeng consided. Non-discrimination legislation and practice Knowledge, Information and Influence of Attitudes and Behaviour (Centre for Senior Policy - CSP)

4 NIS Old Age Pension Reform 2011 NIS Old-Age Pensions to be earned from all lifetime work incomes Guarantee pension for low incomes / short working life Indexation of acquired pension rights to expected longevity Indexation of paid-out pensions to wages and prices avarage Flexible retirement between Actuarian neutral cost principle Gradually implemented from 2011 Disability Pensions and Supplementary Pensions (3rd pillar) is beeing gradually adapted to the reform principles

5 Increased Employment Aged 60+ four years after the first implementation of pension reform 80 Per cent of cohorts employed Prosent

6 Inclusive Workplaces (IW) Triparite agreement and cooperation Goals 1) Reduce sickness absence by 20 % compared to 2001 Achievements (2014) 1) Sickness absence reduced by ca. 10 % ) Increase the employment of disabled persons 2) Constant employment rate of disabled : ca. 43% 3) Increase the employment of senior workers 50+ 3) The average employment per 50+ worker have increased by 2 years / 20%

7 Remaining Years at Work for a 50 year old worker Menn Kvinner Begge kjønn

8 Evaluations of Senior Policies and Age Management at IW- Enterprises tells that: Senior policy provisions and measures are popular, but rather similar - although enterprises and challenges differed ( one-size-fits-all ) The most common provisions beeing shorter & more flexible working time with wage compensation and/or bonuses Few senior & older stayers say that just these tings were decisive but they helped them to continue & made them feel appreciated Expected shortage of personnell /expertize and worrying about high sickness leave and disability pensionering where main motives for employers Good senior policies and age management have a broad HR- and Lifelong Personal Policy approach, and a good dialoge, based on mutual interests, responsibiliy and respect

9 Future Challenges Still too high early labour force Exit via Disability Pensions Align 3rd pillar Pension systems for Private and Public sectors Tackling employment barriers on the side of Employers - uncertainty, attitudes, discrimination, costs?, reduced productivity? Improving the employability of older workers - increased mobility, second/third careers, lifelong competence building Vitalizing the IW-cooperation: - More experimenting and tayloring? A new Information Campaign?

10 The Centre for Senior Policy (CSP) The Centre for Senior Policy (CSP) is a resource and competence centre in the field of promoting active ageing in working life, CSP is working in close cooperation with the social partners and the Government (tripartite cooperation) Close cooperation also with the Norwegian Labour and Welfare Service, different professional networks, especially a researchers network CSP initiate and finance R&D-projects, disseminate results through conferences, seminars and medias The major social partners are represented on CSP s board, CSP has 7 employees Financed by funds from the Government (Ministry of Labour)

11 The Norwegian Labour and Welfare Services NAV - The Norwegian Labour and Welfare Services Administration From 2006 a Merged Services Administration of Public Labour Market Services, Social Insurance Administration and Social help / benefits Services Provided in 435 local offices, 19 counties and at national level. 19 Inclusive Workplace Support Centres established in all counties About 450 consultants to follow up the IW-agreement in the enterprises, 70 to 80 of these are specialists in Senior Policy Important partners for Centre for Senior Policy CSPs core assignment towards the Worklife Support Centres: Offer programmes for skills development to the advisers, and spread information/research results and experiences

12 Fighting Negative Age Stereotypes We have to fight negative Age Stereotypes about older workers: Forgetful and slow Difficulties to learn, especially new technology Problems with change Less productive Often worn-out and with poor health Beware of self-fulfilling prophesies, we are talking about people in economically active age

13 New words, new pictures, new practice To succeed we had to try to connect new words and thus give new associations to the term older worker A new language is needed in the efforts to change the traditional way of thinking, change attiudes and in the end change behaviour Senior Policy is often associated with practical measures like shorter hours, extra long vacation and less heavy manual work, which is often of great benefit for quite many older workers In addition we need to think of measures like skills development, continuing education, lifelong learning, manager training etc Changed attitudes is a prerequisite for a new Age Management

14

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16 Older-stereotype?. or reality? 16

17 Different ways of prolonging work life Stay - keep on your job Return - rehabilitation & training Get a new job - recruitment & mobility Arbejdsinkludering

18 Decreasing productivity as a senior? - But still high or increasing wages costs? ( Lazear`s hypothesis: Productivity = blue line. Wage costs = red line) Lønn og produktivitet produktivitet lønn Alder

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