The Programme Solidarity across generations. Measures aiming at increasing the economic activity of people over 50 Małgorzata Sarzalska Ministry of Labour and Social Policy
The rationale Unfavorable labour market situation of people in preretirement age in Poland: total employment rate 55-64 in 2007 reached 29.7 %, and for women 19.4% Demographic forecasts shows that Poland will grow old very fast: the post war baby-boom is now entering retirement, the number of people aged 60/65 will increase by 3.5 million people in 2007-2035 and will reach 9.6 million, the fertility rate is very low and does not prevent from population shrinkage. 2
The rationale 3
The rationale 4
General information The main goal is to achieve the employment rate for people aged 55-64 at the level of 50 % by 2020. Some of the measures are also addressed to younger generations, mainly those over 45. Intergenerational approach. Includes all four flexicurity components: flexible and reliable contractual arrangements, comprehensive lifelong learning strategies, effective active labour market policies and modern social security systems. 5
Specific objectives Improvement of the working conditions, promotion of employment of people over 50 and age management. Upgrading skills and qualifications of employees over 50. Reduction of labour costs related to the employment of people over 50. Activation of the unemployed or people threatened by unemployment that are over 50. Activation of the disabled. Expanding the opportunities of employment for women. Limitation of employees withdrawal from the labour market within the social benefit system. 6
Implementation The Programme is being implemented at he national and regional level. It covers measures of: the Government employers initiatives changing the motivation of people aged 50+ to prolong their economic activity Social debate on the Programme March September 2008 7
Implementation Implementation Document January 2010 Contains a systematic and detailed set of legislative and extralegislative measures together with entities responsible for carrying out these tasks and a set of monitoring indicators. Updated once. Further updates are planned to introduce new measures. 8
Monitoring The Programme is regularly monitored. The first monitoring report has been prepared in January 2011. The second one is scheduled to be finished at the turn of second and third quarter of 2012. The report covers information on the state of implementation of the measures included in Implementation Document and the costs of these measures. The effects of the programme are also monitored within qualitative and quantitative assessment. 9
The outcomes Decreasing the labour costs of employees aged 55 for women and 60 for men by 2,55 % Temporary decreasing the labour costs in case of employment of the unemployed aged 50+. Decreasing the number of days of sickness leave that employer is obliged to pay for employees aged 50 + from 33 to 14 during a year. Creating more favorable conditions for training of employees aged 45 +. 10
The outcomes Introducing the bridging pensions and ceasing early retirement possibilities in general old-age pension system (except miners and teachers). Implementing regulations changing the rules of setting-up and functioning the nurseries and other forms of childcare (for children up to 3 years of age). Greater access to active labour market policies for unemployed aged 50+. A wide range of measures implemented at the regional and local level mostly financed from the ESF. 11
The outcomes Increasing employment of people aged 5+ 2008 2009 2010 2011 Average age of retirement 59,0 59,3 59,6 Employment rate 55-64 31,6% 32,3% 34,0% 36,9% The share of people aged 55-64 receiving old-age pension 40,3% 40,1% 37,4% The share of people aged 55-64 receiving disability pension 41,7% 44,0% 46,5% The share of people aged 55-64 receiving pre-retirement allowances and benefits 0,9% 1,1% 1,3% Improvement of the working conditions of people over 50 The share of 55-64 years olds injured in accident at work 0,57% 0,53% 0,59% Upgrading skills and qualifications of employees over 50 The share of 55-64 years olds in LLL 1,41% 1,38% 1,88% 1,51% 12
Reduction of labour costs related to the employment of people over 50 Tax wedge for people aged 50+ 43,7% 39,3% 39,3% 39,4% Employers savings due to limitation of the number of days of sickness 0,5 bln 0,6 bln 0,6 bln - paid by the employees aged 55-64 PLN PLN PLN Activation of the unemployed or people threatened by unemployment that are over 50 The share of long term unemployed aged 55-64 52,1% 40,5% 43,0% 46,7% Activation of the disabled Employment rate of dsabled aged 55-64 18,4% 18,2% 18,7% 19,2% The number of employers obliged to pay contributions to PFRON 33345 35173 34462 Expanding the opportunities of employment for women Employment rate of women aged 55-64 20,7% 21,9% 24,2% 27,1% The share of children aged 0-6 cared for in childcare institutions 37,2% 39,1% 40,7% Extension of the effective retirement age Average age of retirement 59 59,3 59,6 Average age of exit from the labour market 61,4 61 62,5 62,3 13
Lessons learned It is difficult to measure the effects of such a Programme. The major problem with implementation is the motivation of people aged 50+ to stay longer on the labour market. The need for debunk the stereotypes that had grown up around the employment of people in pre-retirement age. 14
Thank you for your attention. 15