Communication from the Commission to the Council, the European Parliament, the European Economic and Social Committee and the Committee of the Regions - Increasing the employment of older workers and delaying the exit from the labour market
Date: 2004-03-03
Institutions: European Commission
Subjects: EU employment policy, labour market, older worker

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 3.3.2004 
COM(2004) 146 final 

COMMUNICATION FROM THE COMMISSION 
TO THE COUNCIL, THE EUROPEAN PARLIAMENT, 
THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND 
THE COMMITTEE OF THE REGIONS 

Increasing the employment of older workers and delaying the exit from the labour 
market 

EN 

   EN 

 
 
 
  
COMMUNICATION FROM THE COMMISSION 
TO THE COUNCIL, THE EUROPEAN PARLIAMENT, 
THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND 
THE COMMITTEE OF THE REGIONS 

Increasing the employment of older workers and delaying the exit from the labour 
market 

List of contents 

List of contents .............................................................................................................. 2 

Summary and conclusions............................................................................................. 3 

1. 

Introduction ........................................................................................................... 5 

2.  Progress towards the Stockholm and Barcelona targets........................................ 6 

3.  Employment of older workers and changes in the economy ................................ 8 

4.  Key conditions for fostering the employment of older workers ........................... 9 

5.  Member States must take drastic action.............................................................. 12 

6.  Social partnership is indispensable for success................................................... 13 

7.  EU support of active ageing ................................................................................ 14 

Annex 1: Social partners' action on active ageing....................................................... 16 

Annex 2: Graphs and tables ........................................................................................ 18 

2 

 
 
  
 
Summary and conclusions 

The  low  employment  of  older  workers  in  Europe  represents  a  waste  of  individual  life 
opportunities and societal potential. A sustained growth in longevity means that people have 
greater  opportunities  to  fulfil  their  potential  over  a  longer  life-span.  For  the  economy  as  a 
whole  the  increase  in  participation  and  employment  rates  of  older  workers  are  crucial  for 
using the full potential of labour supply to sustain economic growth, tax revenues and social 
protection  systems,  including  adequate  pensions,  in  the  face  of  expected  reductions  in  the 
population  of  working  age.  Moreover,  there  are  important  gains  for  both  workers  and 
employers  from  establishing  work  place  and  labour  market  practices  that  enable  longer 
working  lives.  Government  policies  can  produce  a  supportive  environment  but  without 
dedicated  contributions  from  the  social  partners  the  necessary  changes  in  age  management 
will not materialize and spread. 

The promotion of active ageing is reflected in the two complementary targets that the EU has 
set itself. The 2001 Stockholm European Council agreed that half of the EU population in the 
55-64 age-group should be in  employment by 2010. The 2002 Barcelona European  Council 
concluded that "a progressive increase of about 5 years in the effective average age at which 
people stop working in the European Union should be sought by 2010".  

Progress  towards  the  Stockholm  and  Barcelona  targets  has  been  achieved,  but  it  is  not 
sufficient 

In  2002  the  employment  of  older  workers  went  up  by  a  significant  5.4%,  leading  to  an 
increase in the employment rate of 1.3 percentage points (men and women) in just one year. 
This  progress  did  not  occur  in  declining  economic  activities  but  in  expanding  sectors.  Over 
the  period  from  1997  to  2002,  the  employment  rate  increase  for  older  workers  was  very 
similar to that of the overall employment rate. The exit age from the labour force increased by 
0.4 year between 2001 and 2002 for the EU as a whole, although progress varied considerably 
between countries. It is not possible to analyse the exit age development before 2001 because 
data are available only from 2001 onwards.  

In  spite  of  these  improvements  the  EU  is  still  far  short  of  both  targets  and  much  stronger 
efforts are needed to make the necessary progress towards both targets. In particular, despite 
recent improvements, the employment rate of women aged 55-64 is only around 30%.  

Member States must take drastic action  

With the ageing and the coming shrinking of the working age population, older workers must 
be recognised for what they are: a core component of labour supply and a key factor for the 
sustainable  development  of  the  European  Union.  Early  retirement  may  appear  a  convenient 
way  for  companies,  workers  and  trade  unions  to  soften  the  negative  impact  of  manpower 
reductions.  But  it  results  in  a  premature  and  permanent  loss  of  human  capital.  Policies  are 
therefore  essential  that  maintain  labour  supply  and  secure  employability  even  in  periods  of 
overall  sluggish  employment  growth.  A  preventative  approach  based  on  mobilising  the  full 
potential of people of all ages in a life-cycle perspective must be the overarching principle of 
policy measures. 

In line with the European Employment Strategy and the Broad Economic Policy Guidelines, 
Member  States  need  to  develop  and  implement  comprehensive  active  ageing  strategies 
addressing  the  key  factors  for  sustaining  the  employment  of  older  workers:  financial 
incentives to discourage early retirement and to make sure that work pays; access to training 

3 

 
 
  
 
and lifelong learning strategies and effective active labour market policies; and good working 
conditions  conducive  to  job  retention,  in  particular  in  relation  to  health  and  safety,  flexible 
working arrangements  (including  part-time and career breaks) and care services. Obviously, 
incentives for older workers to remain in the labour force must be reflected in real prospects 
for employment. These factors are also underlined in the report of the Employment Taskforce 
chaired by Wim Kok.  

The social partners have a major contribution to make in encouraging enterprises to take a 
forward-looking approach and in facilitating better and longer working lives  

Active ageing is a win-win objective for employers and workers alike. Member States' efforts 
to enable workers to continue to work as they age can only succeed if the social partners are 
also strongly engaged.  

Recognition of demographic changes and the need to preserve skills and experience is leading 
to  a  change  in  the  social  partners'  approach.  However,  a  much  stronger  participation  and 
commitment of the social partners are needed in designing and implementing comprehensive 
active ageing strategies. The social partners have a particularly important role to play through 
collective  agreements  on  interconnected  issues  such  as:  reconsideration  of  the  weight  of 
seniority elements as part of pay with a view to bring pay more in line with productivity and 
performance; work organisation and improvements in safety and working conditions; lifelong 
learning (in particular workplace training); removal of incentives for early retirement; higher 
pension entitlements for people to stay in work longer; flexible retirement schemes combining 
gradual  retirement  with  part-time  work.  They  can  also  promote  best  practices  in  relation  to 
age management. 

There are promising developments in a number of Member States. They should be broadened 
and  intensified.  The  social  partners  at  European  level  can  support  and  encourage  these 
changes.  

The EU supports active ageing 

Policy and action at the EU level supports active ageing through policy coordination, through 
the  exchange  of  experience  and  of  best  practice  and  through  the  financial  instruments.  The 
European Employment Strategy and the Broad Economic Policy Guidelines set out the policy 
framework for comprehensive strategies for longer working lives at the EU and Member State 
level, also highlighted as a core objective by the open method of coordination in the area of 
pensions. Active ageing is increasingly supported by the ESF and should be fully incorporated 
in the human resources priorities of the Structural Funds in the next programming period. 

4 

 
 
  
 
1. 

INTRODUCTION  

In its synthesis report to the 2004 European Spring Council1, the Commission has identified 
active ageing as one of the three priority areas for which swift action is needed to deliver the 
Lisbon strategy.  

At the EU level, the promotion of active ageing is reflected in the two complementary targets 
that the EU has set itself. The Stockholm European Council of March 2001 agreed that half of 
the EU population in the 55-64 age-group should be in employment by 2010. The Barcelona 
European Council of March 2002 concluded that "a progressive increase of about 5 years in 
the  effective  average  age  at  which  people  stop  working  in  the  European  Union  should  be 
sought by 2010". These targets are an integral part of the European Employment Strategy. 

The  purpose  of  this  communication  is  to  inform  the  debate  about  developments  on  the 
Stockholm and Barcelona targets and to highlight the role of Governments and social partners 
in promoting active ageing. In its Spring 2004 Report the Commission invited social partners 
to flesh out their commitment to a new European partnership for change in order to promote 
growth and accelerate employment and productivity. Active ageing should be a key element 
of  such  partnership  and  a  central  element  of  the  discussion  in  the  next  Tripartite  EU  Social 
Summit  which  will  take  place  on  the  eve  of  the  Spring  2004  European  Council.  This 
communication  also  responds  to  the  request  of  the  Barcelona  European  Council  to  analyse 
progress  in  this  field  annually  before  every  Spring  Council  (Barcelona  Conclusions 
paragraph 32, last sentence).  

Prior  to  this  communication,  the  joint  report  on  "Increasing  labour-force  participation  and 
promoting  active  ageing"  presented  to  the  Barcelona  European  Council  on  economic  and 
social affairs in 2002 represents a first assessment of the European policies on active ageing. 
The  joint  report  was  followed  in  2003  by  a  first  analytical  study  on  the  Stockholm  and 
Barcelona targets2. 

The  low  employment  of  older  workers  in  Europe  represents  a  waste  of  individual  life 
opportunities and societal potential. As life expectancy continues to rise and the ageing of the 
baby-boomers  greatly  expands  the  share  of  55-64  year  olds  in  the  population,  this  loss 
becomes  increasingly  unsustainable.  The  sustained  growth  in  longevity  means  that  people 
have greater opportunities to fulfil their potential over a longer life-span. However, if they do 
not  have  sufficient  possibility  to  participate  in  employment,  their  living  standards  will  not 
reach their potential level.  

For  the  economy  as  a  whole  the  increase  in  participation  and  employment  rates  of  older 
workers is crucial for using the full potential of labour supply to sustain economic growth, tax 
revenues and social protection systems, including adequate pensions, in the face of expected 
reductions in the population of working age. By 2030 there will be 110 million people over 
the age of 65 in the EU25, up from 71 million in 2000 and the working age population will 
stand at 280 million compared to 303 million today. This has a direct impact on the ability to 

1 

2 

COM(2004) 29, "Delivering Lisbon – Reforms for the enlarged Union", Report from the Commission 
to the Spring European Council.  
SEC(2003) 429, "The Stockholm and Barcelona targets: Increasing employment of older workers and 
delaying the exit from the labour market", Commission staff working paper. Further analysis of labour 
market  issues  related  to  older  workers  is  presented  in  chapter  5  of  the  Employment  in  Europe  report 
2003. 

5 

 
 
  
 
                                                 
sustain economic growth in the longer term. Unless employment rates above the overall 70% 
target  can  be  achieved  and  productivity  can  be  significantly  improved,  the  average  GDP 
growth per capita in the EU will slow down significantly between 2010 and 2030. 

Progress  towards  the  Stockholm  and  Barcelona  targets  is  essential  if  we  are  to  improve 
employment performance and achieve the overall employment rate target of 70%. Workplace 
and  labour  market  practices  need  to  adjust  to  the  fact  that  people  aged  50  and  over  will 
constitute  a  significantly  higher proportion  of  the  potential  work  force  while  the  size  of  the 
group of young entrants will shrink. Changing the attitudes and expectations of both workers 
and employers has become an urgent priority. Unless drastic action is taken in line with the 
European  Employment  Strategy 
and 
recommendations, the EU employment objectives will remain out of reach.  

and  Broad  Economic  Policy  guidelines 

2. PROGRESS TOWARDS THE STOCKHOLM AND BARCELONA TARGETS 

The Stockholm and Barcelona targets are complementary in the sense that they both require 
an increase in labour market participation of older workers. As shown below, countries with 
the  highest  employment  rate  for  older  workers are  generally  those  with  the  highest  average 
exit ages.  

The Barcelona and Stockholm targets in 2002

e
c
r
o
f

r
u
o
b
a
l
e
h
t

m
o
r
f
e
g
a
t
i
x
e
e
g
a
r
e
v
A

65

64

63

62

61

60

59

58

57

56

S

IRL

P

UK

CY

EE

DK

FIN

LV

NL

E

EU15

CZ

EL

LT

D

EU25

F

Stockholm target 50%

SI

I

L

A

HU

B

PL

SK

20

25

30

35

40

45

50

55

60

65

70

Employment rates of older workers (% of population 55-64)

Source: Eurostat, Labour Force Survey, annual averages. 

Notes: Average exit age from the labour force: no data for MT, provisional data for PL; 2001 data for EL, LV, 
LT and SI. 

In  2002  a  first  group  of  countries  –  group  I  –  seems  to  be  close  to,  or  even  above,  the 
Stockholm  target,  among  them,  Sweden,  Denmark,  the  UK,  Estonia,  Ireland,  Cyprus,  and 
Portugal. A second group of countries – group II – is particularly worrisome, with Slovakia, 
Slovenia, Poland, Belgium, Hungary, Luxembourg, Italy, Austria and France, where less than 
35%  of  older  people  were  at  work.  Then  an  'in-between'  group  –  group  III  –  consisting  of 
Germany, the Czech Republic, Finland, Lithuania, Spain, the Netherlands, Greece and Latvia, 

6 

 
 
  
 
 
 
 
 
 
 
 
is  close  to  EU  average3.  Some  countries  in  the  last  group  have  achieved  in  recent  years 
substantial increases in the employment rate of older workers. 

The  new  Member  States  are  scattered  throughout  the  three  groups,  even  though  the  bigger 
countries are found in group II. In 2002 the average for the EU25 was 38.7%, lower than the 
average for the EU15 at 40.1%.  

In  the  EU15  the  difference  between  the  employment  rates  of  older  women  and  men  is 
remarkably high, with employment rates of 30.5% and 50.1% respectively. In three countries 
(EL, E and IRL) this difference is greater than 30 percentage points (Annex 2, table 1). 

In relation to the average exit age from the labour market the figures vary quite substantially 
between  countries,  ranging  from  56.9  in  Poland  to  63.2  in  Sweden  (Annex  2,  table  1).  The 
Member  States  lagging  far  behind  are  the  same  as  those  with  lower  employment  rates.  The 
difference in the average exit age for men and women is small despite the sizeable difference 
in  employment  rates.  This  is  due  to  the  fact  that  significantly  more  women  than  men  have 
never  entered  the  labour  force,  but  the  smaller  pool  of  women  in  the  labour  force  tends  to 
withdraw from it at a similar age as that of men.  

However,  exit  age  figures  must  also  be  seen  in  the  light  of  the  length  of  stay  in  the  labour 
force. While at the EU level the average exit age for the low-skilled is about three years below 
the high skilled, this is compensated for by the fact that their working life also started three 
years earlier (Annex 2, chart 2). 

Overall in the EU15, while progress was slow in the 1990s, more recently the increase in the 
employment rate of older workers has accelerated, outpacing that of the whole population of 
working age. In the new Member States the employment rates of the working age population 
and  of  older  workers  have  both  worsened  significantly  in  the  late  90s.  The  subsequent 
improvement  in  the  employment  rate  of  older  workers  has  only  partially  offset  that 
deterioration,  while  the  overall  employment  rate  has  continued  to  deteriorate  (Annex  2, 
table 3).  

Between  2001  and  2002  the  employment  rate  of  older  workers  went  up  by  1.3  percentage 
points to 40.1%. As much as 80% of the total employment increase in 2002 is accounted for 
by  employment  of  older  workers.  In  general,  progress  has  been  achieved  by  countries  with 
higher as well as lower initial rates and only three countries - Denmark, Slovenia and Poland - 
experienced a decline in the employment rate of older workers. Denmark already comfortably 
meets  the  Stockholm  target,  but  this  is  particularly  worrying  for  the  latter  two  since  they 
already had low rates to start with.  

The  increase  in  the  average  exit  age4  from  the  labour  force  from  60.4  years  in  2001  to 
60.8 years in 2002 for the EU15 and from 60 to 60.4 respectively for the EU25 is in line with 
the  improvement  in  the  employment  rate  of  older  workers  (Annex  2,  table  2).  It  would  be 

3 

4 

Data on 'average exit age from the labour force' not available for Malta. The employment rate for older 
workers was 30.3% in 2002. 
Average  exit  age  figures  for  2001  and  2002  have  been  revised  due  to  submission  of  new  data  from 
Member States and technical adaptations. For a detailed description of the methodology to compute the 
average  exit  age  from  the  labour  force,  see  Employment  in  Europe  report  2003,  annex  5.1  or  the 
following link http://europa.eu.int/newcronos/suite/info/notmeth/en/theme0/strind/emploi_ea_sm.htm. 

7 

 
 
  
 
                                                 
premature to interpret the increase in the exit age as a strong indication of a positive trend as 
there are only two years of data5.  

It  is  too  early  to  judge  the  impact  of  recent  reforms  implemented  by  Member  States  and  to 
assess  whether  the  recent  improvements  are  sustainable  in  the  long-term.  As  highlighted  by 
the Spring 2004 Report, despite the recent positive developments the EU still falls far short of 
both the Stockholm and the Barcelona targets and the long-term trend in the employment rate 
of workers aged between 55-64 is indeed worrying. 

3. 

EMPLOYMENT OF OLDER WORKERS AND CHANGES IN THE ECONOMY  

In  the  late  1970s  and  in  the  1980s,  in  the  light  of  rising  unemployment  (including  youth 
unemployment) and restructuring of traditional industries it became common practice for the 
enterprises  to  carry  out  labour  force  adjustments  through  early  retirement  schemes.  Certain 
social  transfer  schemes  have  also  been  used  de  facto  as  early  retirement  schemes.  In  this 
connection it is important to clarify a number of issues: 

Firstly,  early  retirement  schemes  are  short-term  answers  to  economic  downturns  and 
enterprise restructuring. They are short-sighted because they entail a permanent loss of human 
capital and growth potential for the economy. For older workers, as well as for the economy 
as a whole, prolonged labour market participation is a way to fully realise the benefits from 
increased  life  expectancy.  Labour  market  attachment,  if  supported  by  quality  in  work,  can 
improve  their  living  standards  and  reduce  social  exclusion.  Withdrawal  from  the  labour 
market  is  difficult  to  reverse  when  the  conditions  for  higher  growth  and  employment  have 
been re-established. With this in view, it is important that the policy tide is changed towards 
encouraging older workers to remain in the labour force, notably by reforming incentives to 
work as well as eligibility and access rules to early retirement and other benefit systems. At 
the same time, appropriate incentives to lifelong learning and effective active labour market 
policies are essential to maintain labour supply and secure long-term employability.  

Secondly, there is no evidence that older workers cannot fully participate in the employment 
growth of expanding sectors.  Employment growth for older  workers in most service sectors 
over the period 1998-2002 superseded that of prime age workers. More specifically, growth 
was  relatively  stronger  in  "Real  estate,  renting,  business",  "Health  and  social  work"  and 
"Education"  (Annex  2,  chart  3).  Clearly,  these  cannot  be  said  to  be  declining  economic 
activities.  With  the  sole  exception  of  "Agriculture",  older  workers  today  are  not  clustered 
around declining sectors, at least at the EU level6. 

Thirdly,  there  is  no  empirical  evidence  that  younger  workers  and  older  workers  are 
substitutes. The fact that exits of older workers (55-64) and inflows of younger workers (15-
24) do not occur in the same sectors suggests that this is not the case. Both changes in their 
specific  sectoral  employment  structure  as  well  as  absolute  growth  rates  over  the  past  few 
years show that, although to a different degree, the positive or negative sign of employment 
change  is  generally  the  same  for  young  and  older  workers  –  except  for  "Manufacturing" 
(Annex  2,  chart  3).  In  addition,  experience  from  several  Member  States  demonstrates  that 

5 

6 

The  calculation  of  the  average  exit  age  from  the  labour  force  is  based  on  the  ILO  employment  and 
unemployment  definitions  which  cover  short  term  employment  developments.  Therefore,  the  few 
results available so far (two years) cannot be considered to be numerous and stable enough to draw any 
relevant forecast. 
For a more complete analysis, see the 2003 Employment in Europe Report, chapter 5. 

8 

 
 
  
 
                                                 
growth  in  the  employment  rate  of  older  workers  goes  hand-in-hand  with  growth  in  that  of 
younger workers (Annex 2, chart 4). In several of the new Member States the picture is more 
complex with sizeable reductions in the employment rates of younger workers over the past 
five years in several of them, due to the depressed state of the labour markets. 

4. 

KEY CONDITIONS FOR FOSTERING THE EMPLOYMENT OF OLDER WORKERS 

The evidence shows that increases in the labour force participation and employment rates of 
older  workers  can  be  achieved  when  the  right  labour  market  conditions  and  policies  are  in 
place: the increase in the employment rate of older workers and the delay in the average exit 
age  from  the  labour  market  are  not  just  an  effect  of  the  overall  employment  growth  in 
Member States. Sizeable growth in the employment rates of older workers has been achieved 
even  in  Member  States  with  sluggish  overall  employment  growth.  Sound  macroeconomic 
conditions  are  necessary  to  sustain  high  levels  of  employment  but  specific  labour  market 
conditions must be present to facilitate longer working lives.  

Main reasons for leaving last job or business for older workers 

aged 55-64 in the EU15
 (average over the period 1995-02, % of all reasons given)

40

35

30

25

20

15

10

5

0

Normal retirement

Early retirement

Own illness or
disability

Dismissed or
made redundant

Other reasons

Source: Eurostat, Labour Force Survey, spring results. 

Appropriate financial incentives 

While about one third of inactive people aged 55-64 report their main reason for leaving the 
last  job  or  business  as  normal  retirement,  more  than  20%,  which  amounts  to  an  average  of 
around 3 million per year, indicate early retirement as the main reason. These results point to 
the importance of reforming the early retirement provisions and more generally of reviewing 
the financial incentives and of ensuring proper implementation also in other benefit schemes 
(such  as  long-term  unemployment,  long-term  sickness  and  disability  that  may  provide 
alternative  pathways  to  withdraw  from  the  labour  market)  in  order  to  ensure  that  it  pays  to 
remain in the labour market7.  

7 

For  a  full  assessment  of  social  protection  systems  reforms,  see  the  forthcoming  report  by  the  Social 
Protection Committee "Promoting Longer Working Lives through Better Social Protection Systems".  

9 

 
 
  
 
 
                                                 
Good health and safety conditions at work  

The second most important reason why older workers leave their job is long-term illness or 
disability. Besides, the standardised prevalence rate of work-related health problems increases 
with age.  This  clearly points to the central role of health and safety concerns for the well-
being of older workers and for their ability to remain in the labour force. Health and  safety 
issues are also important in order to avoid unwanted loss in labour productivity as a result of 
an increase in the number of working days lost.  

Flexible forms of work organisation 

Flexible forms of work organisation are another component of working conditions that can 
foster job retention for older workers. National surveys demonstrate that a significant part of 
older  workers  would  prefer  a  gradual  process  of  retirement,  mainly  due  to  health  reasons 
related to ageing8. Between 2001 and 2002, strong increases in the employment rates of older 
workers were associated in most member states with positive increases in the share of part-
time  workers.  36%  of  the  employment  creation  for  older  workers  during  1997-2002  is 
accounted for by increases in part-time employment, which led to an increase in their share of 
part-time  work.  Retirement  should  become  a  process  rather  than  an  event  in  which  people 
decide  to  reduce  their  working  hours  progressively  over  time.  Part-time  retirement  is  an 
option that deserves more attention than it currently receives. 

Different  occupations  and  jobs  present  different  levels  of  physical  and  mental  strain.  As 
workers  become  older,  they  should  have  the  opportunity  to  fill  the  posts  that  best  suit  their 
intellectual  and  physical  abilities  and  they  should  have  the  option  to  choose  part-time 
employment – or at least a reduction in working hours. 

Self-employment  may  also  be  considered  by  older  workers  as  an  alternative  to  part-time 
work. This option seems particularly well suited to workers aged 50 and over: in 2002 self-
employment for this age group grew by around 3%, as opposed to less than 0.3% for prime 
age workers.  

Continuing access to training 

Job retention and employment levels of older workers are strongly correlated with the level of 
training  they  receive  and  their  initial  educational  attainment.  There  is  also  a  strong 
correlation  between  educational  attainment  level  and  the  quality  of  the  job  people  have  in 
terms of pay and working conditions. There is no empirical evidence that older workers are 
more or less productive than other age groups. Productivity potential of older workers is not 
impaired  by  age  but  by  skills  obsolescence  –  something  that  can  be  corrected  through 
training9. The know-how of older workers makes them an invaluable resource for employers. 
Training  also  represents  an  opportunity  for  employees  to  update  their  skills  and  strengthen 
their  position  in  the  labour  market,  in  particular  in  developing  the  skills  for  taking  full 
advantage of Information and Communication Technologies.  

8 

9 

For  example,  a  recent  UK  study  (Humphrey  et.  al.,  2003,  "Factors  affecting  the  labour  force 
participation of older workers", DWP Research Report 200) shows that almost a third of the workforce 
aged 50-69 want to retire gradually by reducing their working hours.  
The  OECD's  International  Adult  Literacy  Survey  (IALS)  provides  an  important  piece  of  empirical 
evidence  to  show  the  relationship  between  age,  productivity  and  training.  Its  analysis  suggests  that 
literacy skills measured by the IALS are a key determinant of worker's productivity and that these skills 
improved with practice and deteriorated if not used.  

10 

 
 
  
 
                                                 
In  this  context,  as  is  the  case  with  other  age  groups  in  the  population,  it  is  important  to 
recognise  that  the  challenge  is  not  only  to  increase  participation  in  vocational  training,  but 
also to improve the general knowledge and competence levels of older people.  

Older workers receive less training than other age groups. The percentage of the labour force 
participating in education and training declines with age and this trend starts early on in the 
working  life.  To  increase  the  level  of  training  that  older  workers  receive,  it  is  therefore 
essential to reverse this declining trend from an early stage in the life-cycle: only life-long 
learning can guarantee future cohorts of older workers the necessary skills to adapt to changes 
in  the  labour  market.  The  graph  below  shows  that  the  percentage  of  the  labour  force  in 
education  and  training  in  each  age  group  increased  only  moderately  in  the  past  years  and 
progress is too slow10.  

Percentage of the labour force participating in education 
and training - EU15 

%

16

14

12

10

8

6

4

2

0

2002

1999

25-29

30-34

35-39

40-44

45-49

50-54

55-59

60-64

Age 

Source: Eurostat, Labour Force Survey, spring results. 

Effective active labour market policies 

To  ensure  that  people  can  remain  longer  in  employment,  it  is  essential  to  anticipate  change 
and manage economic restructuring successfully. In particular, older workers are at high risk 
of quitting the labour market in the event of company restructuring or downsizing. This calls 
for  strengthened  active  labour  market  policies  to  prevent  unemployment  and  help  those 
older  workers  losing  their  job  to  remain  in  the  labour  market  and  find  another  job. 
Personalised  approaches  to  meet  individual  needs,  including  through  guidance  services, 
specific training and outplacement systems are particularly crucial in this respect. Moreover, 
the use of unemployed benefits schemes as an alternative route to early retirement for older 
workers  should  be  avoided.  Such  substitution  between  benefit  schemes  needs  to  be  tackled 
through  activation  of  the  benefit  systems,  supporting  hiring  unemployed  older  while 
maintaining entitlement to unemployment benefits, providing guidance encouraging transition 
to another work or self-employment. 

10 

For a chart with 2002 data split by gender see chart 7 in annex 2.  

11 

 
 
  
 
 
                                                 
Improved quality in work 

Health and safety at work, work organisation and training are all key dimensions of quality in 
work11.  As  shown  in  Employment  in  Europe  2002,  job  quality  is,  in  general,  crucial  to  re-
attract  in  the  labour  market  older  people  and  people  with  care  responsibilities.  At  the  same 
time, the withdrawal from the labour market of older workers in low quality jobs is up to four 
times higher than that of older workers in jobs of higher quality, but also more than twice as 
high  as  that  of  younger  people  in  low  quality  jobs.  In  particular,  flexible  contractual 
arrangements  need  to  be  accompanied  by  further  training  or  to  provide  career  advancement 
opportunities if they are to help older workers stay in or reintegrate into the labour market. 

5. 

MEMBER STATES MUST TAKE DRASTIC ACTION 

The key factors identified in the previous section12 are also reflected in the policy framework 
defined  by  the  new  European  Employment  Guidelines  (2003),  in  particular  the  specific 
guideline 5 and in the Broad Economic Policy Guidelines (guidelines 4-8). The recent report 
of the Employment Taskforce13 set clear priorities for further action and called Member states 
and social partners for defining a comprehensive active ageing policy centred on: 

•  Providing  incentives  for  workers  to  retire  later  and  in  a  more  gradual  way  and  for 
employers to hire and keep older workers by reforming the pension systems and ensuring 
that it pays to remain in the labour market. 

•  Promoting  access  to  training  and  other  active  labour  market  policy  measures  for  all 
regardless  of  age  and  developing  lifelong  learning  strategies,  in  particular  workplace 
training for older workers.  

•  Fostering working conditions conducive to job retention — such as recognising the special 
importance  of  health  and  safety  at  work,  and  of  innovative  and  flexible  forms  of  work 
organisation  throughout  the  working  life,  including  the  provision  of  part-time  and  career 
breaks. 

In  designing  and  implementing  such  a  comprehensive  active  ageing  strategy,  particular 
attention  should  be  paid  to  the  need  to  increase  the  employment  rate  of  women  aged  55-64 
and to keep them longer in the labour force. Such efforts should take into account the specific 
incentives  that  could  play  a  particularly  important  role  for  women,  including  reducing  the 
gender pay gap and providing adequate care facilities for people of all ages.  

The  report  of  the  Employment  Taskforce  underlines  the  importance  of  "a  radical  shift  in 
policy  measures,  away  from  a  culture  of  early  retirement,  towards  comprehensive  active 
ageing policies" along the lines mentioned in the Employment Guidelines. The report further 
suggests that "the challenge is not only to ensure that a higher share of those currently aged 
55-64 stay in work, but also to enhance the employability of those currently in their 40s and 
50s". To increase the participation of older workers it is necessary to change the attitude and 
expectations of both employers and workers from early on in their active life. 

11 
12 

13 

COM(2003) 728, "Improving quality in work: a review of recent progress". 
See  also  the  Joint  Council-Commission  report  “Increasing  labour-force  participation  and  promoting 
active ageing”, March 2002. 
Jobs, Jobs, Jobs, Creating more employment in Europe, report of the Employment Taskforce chaired by 
Wim Kok, November 2003. 

12 

 
 
  
 
                                                 
An  assessment  of  the  implementation  of  the  specific  employment  guideline  on  ageing  is 
presented  in  the  Joint  Employment  Report  2004.  Ageing  affects  not  just  older  people  today 
but  all  generations.  Mobilising  the  full  potential  of  people  of  all  ages  over  the  lifecycle 
represents the overarching principle of the EU strategy to the ageing of the workforce. Older 
workers must not be perceived as just another vulnerable group meriting special attention, but 
as a core component of the labour supply and a key factor for the sustainable development of 
the European Union. 

This  approach  is  increasingly  reflected  by  Member  States  in  the  development  and 
implementation  of  their  strategies  on  ageing  (e.g.  S,  UK,  DK  and  FIN).  Several  Member 
States  are  applying  comprehensive  ageing  strategies  and  some  have  set  national  targets  to 
raise the average exit age (F, FIN and P). Member States are implementing a wide range of 
measures  focused  on  the  reform  of  the  pension  and  tax-benefit  systems.  At  the  same  time, 
they  are  paying  more  attention  to  better  access  to  training  and  adaptation  of  working 
conditions and organisation, in order to address more effectively the needs of older workers. 
Recent pension reforms include increases in the normal retirement age and discouraging early 
retirement, while encouraging flexible retirement.  

6. 

SOCIAL PARTNERSHIP IS INDISPENSABLE FOR SUCCESS 

A  society  and  economy  where  older  workers  play  a  more  active  role  in  the  labour  market 
would be beneficial to all – to workers and employers alike. Good design, public acceptance 
and  successful  implementation  of  policies  to promote  active  ageing  depend  crucially  on  the 
awareness and involvement of the social partners. For a long time social partners, supported 
by  the  existing  policy  framework,  have  addressed  labour  market  adjustment  by  facilitating 
early withdrawal of the older workers from the labour force. As underlined in the report of the 
High  Level  Group  on  "Industrial  relations  and  change  in  the  EU",  "the  promotion  of  active 
ageing  with  the  aim  of  enhancing  the  capacity  of  and  the  incentives  for  older  workers  to 
remain  in  the  labour  force"  must  become  an  essential  dimension  of  industrial  relations.  A 
much stronger commitment on the side of social partners is needed to facilitate the transition 
to longer working lives, to equip individuals with the necessary skills to face the challenges 
ahead, and to promote best practices amongst employers in relation to age management.  

A  better  understanding  of  demographic  changes,  of  emerging  skill  bottlenecks  in  major 
industries  and  services,  of  the  need  to  ensure  an  adequate  supply  of  skilled  and  adaptable 
labour,  of  the  importance  to  develop  and  preserve  skills  and  experience  as  a  condition  for 
economic growth, has begun to influence the thinking and attitudes of the social partners in 
recent  years,  leading  to  a  more  proactive  approach  to  age  management  in  some  Member 
States and at the EU level. The social partners in Member States that are lagging behind have 
the opportunity to learn from these positive examples.  

However, despite the recent developments, social partners should broaden and intensify their 
efforts both at national and EU level to establish a new culture on ageing and management of 
change. Far too often, employers continue to give priority to early retirement schemes.  

In the context of the European Employment Strategy and in line with the priorities set in the 
2004  Spring  Report  and  the  report  of  the  Employment  Taskforce  (chaired  by  Wim  Kok), 
further action should include the following measures.  

13 

 
 
  
 
a)  Providing  incentives  for  workers  to  retire  later  and  for  employers  to  hire  and  keep  older 
workers 

•  Removal  of  incentives  for  and  forms  of  early  retirement  schemes  and  development  of 
gradual  exit  strategies  which  value  as  much  as  possible  the  human  capital  of  the 
experienced workers and which set incentives in negotiated occupational pension schemes 
to remain longer in work.  

•  Greater awareness on ageing among employers to tackle age discrimination by promoting 

the benefits of an age diverse workforce to both individuals and firms. 

•  Reconsideration of the weight of seniority elements as part of pay with a view to bring pay 

more in line with productivity and performance. 

•  Incentives in collective agreements to recruit older unemployed persons. 

•  Further development of package deals in collective negotiations which give greater choice 
for  the  individual  workers  to  a  lifelong  development  of  their  employability  and 
adaptability. 

b) Promoting access to training and investment in work ability 

•  Fostering  age-related  adaptability  action  in  SMEs,  notably  by  pooling  training  support 
structures and developing exchange mechanisms with a view to optimally accommodating 
job opportunities and vacancies. 

•  Increasing continuing training of older workers, notably low skilled ones, to develop their 

work potential to the highest level. 

•  Developing  in  cooperation  with  public  authorities  active  labour  market  policies,  e.g. 

personalised approaches to meet individual needs. 

c) Fostering working conditions conducive to job retention 

•  Increased efforts to offer adapted part-time or fixed-term work contracts. 

•  Adaptation of the work load, improvement of working conditions and upgrading health and 
safety  measures  to  the  needs  of  older  workers.  This  should  include  easier  transitions  to 
other occupations inside and outside the enterprise in line with older age. 

7. 

EU SUPPORT OF ACTIVE AGEING  

The European Employment Strategy sets out the policy framework for future action at EU and 
national  level.  In  line  with  the  European  Employment  Guidelines,  Member  States  need  to 
develop  and  implement  comprehensive  ageing  strategies  addressing  the  key  factors  for 
sustaining the employment of older workers. To support implementation at national level, the 
Employment  Taskforce  Report  under  the  chairmanship  of  Wim  Kok  recommends  that 
Member States set national targets reflecting those agreed at European level, in particular as 
regards  the  employment  rate  of  older  workers  and  the  effective  age  of  exit  from  the  labour 
market.  

14 

 
 
  
 
The  open  method  of  coordination  in  the  area  of  pensions  recognises  the  importance  of 
prolonging  working  lives  as  an  important  element  in  the  long-term  strategies  for  making 
pensions  sustainable,  while  stating  that  the  higher  employment  rate  alone  will  not  solve  the 
problem of the financial sustainability of pension systems.  

The peer review programme  organised within the context of the EES provides a useful tool 
for  exchanging  experience  and  best  practice  for  promoting  active  ageing  strategies  in  the 
Member States and for comparing the effectiveness of national measures. The strong interest 
shown  by  the  Member  States  for  the  development  and  implementation  of  a  comprehensive 
ageing  programme  in  Finland  shows  the  high  relevance  of  such  issues  for  the  EU  Member 
States. 

The EU also supports the promotion of active ageing policies through the identification and 
transfer of successful practices in age management under the EQUAL initiative.  

Attention should also be drawn to the important contribution which education can make to the 
process  of  active  ageing.  This  is  reflected  in  growing  EU  support  for  projects  addressing 
educational  challenges  and  opportunities  for  older  people  in  the  framework  of  the  Adult 
education (“Grundtvig”) action of the Union’s education action programme “Socrates”.  

Finally, the ESF provides support to Member States policies on active ageing through two of 
its  policy  fields  for  action:  developing  and  promoting  active  labour  market  policies,  and 
promoting  and  improving  lifelong  learning  policies.  The  mid-term  review  of  the  ESF  has 
demonstrated an increasing trend towards support for active ageing measures, particularly in 
the  Nordic  countries.  Support  for  active  ageing  should  be  fully  incorporated  in  the  human 
resource priorities of the Structural Funds in the next programming period beginning in 2007. 

15 

 
 
  
 
Annex 1: Social partners' action on active ageing 

Recently,  social  partners  have  begun  to  address  specific  aspects  of  active  ageing  both  in 
Member  States  and  at  the  EU  level.  In  particular,  the  following  developments  should  be 
noted. 

In  Finland,  a  comprehensive  programme  for  ageing  workers  has  been  carried  out  between 
1998 and 2002 on a tripartite basis. The programme focussed on older workers as a resource 
by  developing  their  employability  and  working  environment.  Various  aspects  of  this 
programme will be continued in a new generation of tripartite programmes on employee well-
being, the improvement of productivity and the quality in working life. 

In the Netherlands, about 35% of the collective agreements contain provisions on increasing 
employability for older workers. In addition, possibilities to work shorter hours, to reduce the 
workload and to grant longer holidays are often included.  

In  France,  a  nation-wide  agreement  on  vocational  training  contains  provisions  relating  to  a 
skills audit for older workers, including prioritised access to the recognition of work-derived 
experience. Territorial agreements on corporate restructuring widening the scope for effective 
reconversion plans are intended to take account more specifically of the needs of experienced 
workers.  

In Greece, social partners envisage action to raise funds to subsidise employment of persons 
close to retirement 

In  Germany,  in  the  tripartite  Job  Alliance  process  the  move  towards  early  retirement  was 
resolutely  reversed  to  keep  persons  longer  in  work,  which  is  progressively  taken  up  in 
collective agreements. 

In Austria, the Severance Act, negotiated by the social partners and taken over by Parliament 
has the potential to increase mobility and flexibility on the labour market, and may increase 
re-employment possibilities for older workers. In 1999, a joint pact between the government, 
the social partners and the PES was presented, addressing the issue of financial incentives to 
employ older workers. Measures to this effect have been gradually introduced. 

In Belgium, collective agreements foresee the possibility to support the smooth transition of 
older  workers  in  case  of  redundancy  by  corporate  restructuring  into  other  job  opportunities 
(re-placement inside companies, personal coaching, outplacement, career paths for a new job, 
etc.). 

In  Denmark,  framework  agreements  concerning  the  employment  of  older  workers  in  the 
county  and  municipal  administrations  help  to  retain  older  workers  in  the  labour  market  by 
initiatives such as adapted training and gradual working time reductions. 

In  Sweden,  collective  bargaining  contains  provisions  to  introduce  individual  training  saving 
accounts to empower older workers to invest in education and the restoration of their skills.  

At  the  European  level  the  following  initiatives  are  expected  to  have  a  positive  impact  on 
higher labour force participation and employment of older workers. 

16 

 
 
  
 
The European social partners recently presented the orientations in managing change and its 
social consequences. The adaptability of enterprises and workers depends on their capacity to 
anticipate, trigger and absorb change. This is a good starting point for further action as they 
insist  on  the  importance  of  maintaining  and  developing  workers'  competencies  and 
qualifications to foster internal and external mobility and to ensure the success of business.  

The European social partners have agreed a framework of actions on the lifelong development 
of qualifications and competencies. This framework, adopted in March 2002, emphasises the 
need  to  design  new  ways  of  approaching  learning  systems  and  to  ensure  that  there  are 
opportunities  for  all  age  groups,  both  women  and  men,  skilled  and  unskilled.  A  first 
implementation  report  of  this  framework  was  submitted  to  the  tripartite  social  summit  for 
growth and employment in March 2003. 

In line with their Joint Work Programme 2003-2005, the European social partners will soon 
engage in discussions to explore possible joint actions with regard to the ageing workforce. 

Voluntary  guidelines  agreed  by  the  respective  European  partners  in  March  2002  to  support 
age  diversity  in  the  commerce  sector  underline  that  an  age-neutral  approach  should  be 
adopted with regards to employment, recruitment, vocational training and the distribution of 
positions  within  companies.  The  social  partners  have  a  special  role  to  play  in  shifting  age 
stereotypes in work organisation. 

17 

 
 
  
 
Table 1: The Barcelona and Stockholm targets (2002) 

Annex 2: Graphs and tables 

Stockholm target 

Barcelona target 

Employment rate of  

Change in employment rate of  

Average exit age from the  

older workers in 2002 

older workers 1998-2002 

labour force in 2002 

Total 

Men 

Women 

Total 

Men 

Women 

Total 

Men  Women 

B 

DK 

D 

EL 

E 

F 

IRL 

I 

L 

NL 

A 

P 

FIN 

S 

UK 

EU15 

EU25 

CZ 

EE 

CY 

LV 

LT 

HU 

MT 

PL 

Sl 

SK 

26.6 

57.9 

38.6 

39.7 

39.7 

34.8 

48.1 

28.9 

28.3 

42.3 

30.0 

50.9 

47.8 

68.0 

53.5 

40.1 

38.7 

40.8 

51.6 

49.4 

41.7 

41.6 

26.6 

30.3 

26.1 

24.5 

22.8 

36.1

64.5

47.1

56.0

58.6

39.3

65.1

41.3

37.9

54.6

39.8

61.3

48.5

70.4

62.6

50.1

48.9

57.2

58.4

67.3

50.5

51.5

36.7

50.4

34.5

35.4

39.1

17.5 

50.4 

30.1 

24.4 

22.0 

30.6 

30.8 

17.3 

18.6 

29.9 

20.9 

41.9 

47.2 

65.6 

44.7 

30.5 

29.1 

25.9 

46.5 

32.1 

35.2 

34.1 

18.5 

11.8 

18.9 

14.2 

9.5 

3.7

5.9

0.9

0.7

4.6

6.5

6.4

1.2

3.2

8.4

1.6

0.9

11.6

5

4.5

3.5

2.9

3.7

1.4

.

5.4

1.1

9.3

.

-6.0

0.6

0.0

3.9

3.2

-0.1

0.2

6

6.8

5

-0.1

2.7

7.1

-0.7

-2.2

10.1

4.3

3.5

2.8

2.2

4.0

-3.6

.

2.4

-5.5

9.7

.

-7.0

3.6

0.0

3.5

8.4

1.8

1

3.2

6.2

7.7

2.3

3.1

9.6

3.8

3.6

13.1

5.6

5.5

4.2

3.6

3.0

4.9

.

7.7

6.2

8.9

.

-5.2

-1.9

0.1

58.5 

60.9 

60.7 

. 

61.5 

58.8 

62.4 

59.9 

59.3 

62.2 

59.3 

62.9 

60.5 

63.2 

62.3 

60.8 

60.4 

60.2 

61.6 

61.4 

. 

. 

58.6 

61.9 

61.1 

. 

61.5 

58.9 

62.0 

60.2 

. 

62.9 

59.4 

62.8 

60.6 

63.4 

62.7 

61.0 

60.8 

62.2 

. 

. 

. 

. 

58.4

59.8

60.3

.

61.5

58.7

62.8

59.7

.

61.6

59.3

63.0

60.4

63.1

61.9

60.5

60.0

58.4

.

.

.

.

59.2 

59.6 

58.8

. 

. 

.

56.9 

58.1 

55.8

. 

. 

.

57.5 

59.6 

55.7

Source: Eurostat, Labour Force Survey, annual averages. 

Notes: "." not available;  

Average exit age from the labour force: estimation for 2002 for EU15 and EU25, provisional data for PL; Spring data for D, F, 
L, and CY, Average of quarter 2 and 4 in LV and LT. Data based on overall activity rates (no adjustment by gender since data 
by sex lack reliability due to the low sample size) for L, EE, CY, LV, LT and SI. 

18 

 
 
  
 
 
 
Table 2: Average exit age from the labour force 

2001 

2002 

Change 2002-2001 

Total  Men  Women  Total  Men  Women Total  Men  Women 

B 

DK 

D 

EL 

E 

F 

IRL 

I 

L 

NL 

A 

P 

FIN 

S 

UK 

EU15 

EU25 

CZ 

EE 

CY 

LV 

LT 

HU 

MT 

PL 

Sl 

SK 

56.8 

61.6 

60.6 

59.4 

60.4 

58.1 

62.8 

59.8 

56.8 

60.9 

59.2 

61.8 

61.4 

61.7 

62.0 

60.4 

60.0 

58.9 

61.1 

62.3 

62.4 

58.9 

57.8 

 . 

56.6 

61.5 

57.5 

57.8 

62.1 

60.9 

61.2 

60.7 

58.2 

63.2 

59.9 

 . 

61.1 

59.9 

62.1 

61.5 

61.9 

63.0 

60.8 

60.6 

60.7 

 . 

 . 

 . 

 . 

58.5 

 . 

57.8 

 . 

59.3 

55.9 

61.0 

60.4 

57.7 

60.2 

58.0 

62.5 

59.8 

.  

60.8 

58.5 

61.6 

61.3 

61.6 

61.0 

60.0 

59.4 

57.3 

.  

.  

.  

.  

57.3 

.  

55.5 

.  

56.0 

58.5

60.9

60.7

.

61.5

58.8

62.4

59.9

59.3

62.2

59.3

62.9

60.5

63.2

62.3

60.8

60.4

60.2

61.6

61.4

.

.

58.6

61.9

61.1

.

61.5

58.9

62.0

60.2

.

62.9

59.4

62.8

60.6

63.4

62.7

61.0

60.8

62.2

.

.

.

.

59.2

59.6

.

.

56.9

58.1

.

.

57.5

59.6

58.4

59.8

60.3

.

61.5

58.7

62.8

59.7

.

61.6

59.3

63.0

60.4

63.1

61.9

60.5

60.0

58.4

.

.

.

.

58.8

.

55.8

.

55.7

1.7

-0.7

0.0

.

1.1

0.7

-0.4

0.1

2.5

1.3

0.2

1.1

-0.9

1.5

0.3

0.4

0.4

1.3

0.5

-0.9

.

.

1.3

.

0.3

.

0.0

0.8 

-0.2 

0.2 

.  

0.8 

0.7 

-1.2 

0.3 

.  

1.8 

-0.5 

0.7 

-0.9 

1.5 

-0.3 

0.2 

0.2 

1.5 

. 

. 

. 

. 

1.1 

.  

0.3 

.  

0.3 

2.5 

-1.2 

-0.1 

.  

1.3 

0.7 

0.3 

-0.1 

.  

0.8 

0.8 

1.4 

-0.9 

1.5 

0.9 

0.5 

0.6 

1.1 

.  

.  

.  

.  

1.5 

.  

0.3 

.  

-0.3 

Source: Eurostat, Labour Force Survey, annual averages. 

Notes: "." not available; Provisional data for PL; Spring data for D, F, L, and CY, Average of quarter 2 and 4 in LV and LT. Data 
based on overall activity rates (no adjustment by gender since data by sex lack reliability due to the low sample size) for L, EE, 
CY, LV, LT and SI; estimation for 2002 for EU15 and EU25. 

The calculation of the average exit age from the labour force is based on the ILO employment 
and unemployment definitions which cover short term employment developments. Therefore, 
the few results available so far (two years) cannot be considered to be numerous and stable 
enough to draw any relevant forecast. 

19 

 
 
  
 
 
 
Table 3: Recent trends in employment rates  

Recent trends in employment rates  

1997 

2000 

2001 

2002 

15-64 

55-64 

15-64 

55-64 

15-64 

55-64 

15-64 

55-64 

60.7 

60.6 

60.1 

73.5 

70.0 

56.8 

74.9 

63.7 

55.1 

49.4 

59.6 

57.5 

51.3 

59.9 

68.5 

67.8 

65.7 

63.3 

69.5 

69.9 

- 

- 

- 

- 

- 

52.4 

- 

58.9 

62.6 

- 

36.4 

35.7 

31.6 

57.2 

64.2 

22.1 

51.7 

38.1 

41.0 

34.1 

29.0 

40.4 

27.9 

23.9 

32.0 

28.3 

48.2 

35.6 

62.6 

48.3 

- 

- 

- 

- 

- 

17.7 

- 

33.9 

21.8 

- 

63.4 

62.4 

57.4 

74.1 

68.9 

60.5

76.3

65.6

55.7

56.2

62.1

65.1

53.7

62.7

72.9

68.5

68.4

67.2

73.0

71.5

65.0

60.4

65.6

57.5

59.3

56.3

54.2

55.0

62.8

56.8

37.8 

36.6 

29.6 

57.8 

62.8 

26.3

55.7

37.6

38.6

37.0

29.9

45.3

27.7

26.7

38.2

28.8

50.7

41.6

64.9

50.8

36.3

46.3

49.4

36.0

40.6

22.2

28.5

28.4

22.7

21.3

64.1 

62.8 

56.6 

73.1 

68.8 

59.9

76.2

65.8

55.4

57.7

62.8

65.7

54.8

63.1

74.1

68.5

68.7

68.1

74.0

71.7

65.0

61.0

67.8

58.6

57.5

56.5

54.3

53.4

63.8

56.8

38.8 

37.5 

29.7 

58.6 

62.0 

25.1

58.0

37.9

38.0

39.2

31.9

46.8

28.0

25.6

39.6

28.9

50.1

45.7

66.7

52.3

37.1

48.5

49.1

36.9

38.9

24.1

29.4

27.9

25.5

22.4

64.3 

62.9 

55.9 

71.9 

68.2 

59.9 

75.9 

65.3 

56.7 

58.4 

63.0 

65.3 

55.5 

63.7 

74.4 

69.3 

68.2 

68.1 

73.6 

71.7 

65.4 

62.0 

68.6 

60.4 

59.9 

56.6 

54.5 

51.5 

63.4 

56.8 

40.1 

38.7 

30.5 

59.5 

61.6 

26.6 

57.9 

38.6 

39.7 

39.7 

34.8 

48.1 

28.9 

28.3 

42.3 

30.0 

50.9 

47.8 

68.0 

53.5 

40.8 

51.6 

49.4 

41.7 

41.6 

26.6 

30.3 

26.1 

24.5 

22.8 

EU 15 

EU 25 

ACC 

USA 1 

Japan 

B 

DK 

D 

EL 

E 

F 

IRL 

I 

L 

NL 

A 

P 

FIN 

S 

UK 

CZ 

EE
CY 

LV 

LT 

HU 

MT 

PL 

SI 

SK 

Source: Eurostat, Labour Force Survey, annual averages. OECD Outlook reports for the USA and Japan. 

Notes: 1) in the USA, data is for 16-64 

20 

 
 
  
 
 
 
Chart 1: Average exit age from the labour force in 2002 by gender – EU15 

Women Men

Total

65

64

63

62

61

60

59

58

57

56

55

B

DK

D

EL

E

F

Women

Men

Total

58.4

58.6

58.5

59.8

61.9

60.9

60.3

61.1

60.7

57.7

61.2

59.4

61.5

61.5

61.5

58.7

58.9

58.8

IRL

62.8

62.0

62.4

I

NL

A

P

59.7

60.2

59.9

61.6

62.9

62.2

59.3

59.4

59.3

63.0

62.8

62.9

FIN

60.4

60.6

60.5

S

UK

EU15

63.1

63.4

63.2

61.9

62.7

62.3

60.5

61.0

60.8

Source: Eurostat, LFS; 2001 data for EL; L not available by gender. 

Chart 2: Starting/ exiting active life by gender and education – EU15 

Relationship between starting and exiting active life by gender and 
educational attainment in the EU15

Question asked  to 55-64 year-olds in 2000: how old were you when you began your working life, that is
started your first job or business?
Average exit age from the labour force (2001)

60.4

60.8

60.0

59.3

60.3

62.1

18.7

18.2

19.3

18.0

18.6

21.2

70

60

50

40

30

20

10

0

Total 

Men

Women

Low skilled

Medium skilled

High skilled

Source: Eurostat, ECHP (variable: PE039), UDB, version June 2003, wave 7 (2000). 

21 

 
 
  
 
 
 
Chart 3: Annual employment growth by sector and age in the EU15, 1998-2002 

8

6

4

%

2

0

-2

-4

Agriculture, 
fishing

M anufacturing Construction

Wholesale, 
retail trade

Hotels, 
restaurants

Transport, 
storage, 
communication

Financial 
intermediation

Real estate, 
renting, 
business

Public 
administration, 
defence

Education

Health, social 
work

Personal 
services

15-24

25-54

55-64

-3.4

-1.8

-3.6

-2.8

-0.2

1.1

2.6

1.9

2.4

1.4

0.9

1.3

2.4

3.4

2.6

4.7

2.0

4.6

5.2

0.5

4.3

5.5

5.6

7.4

4.0

1.2

3.1

2.5

1.2

6.0

2.3

1.7

7.0

3.7

2.3

4.5

Source: Eurostat, Labour Force Survey, spring results. 

Chart 4: Changes in the employment rates of younger and older workers 1998 -2002 

Change in employment rates of younger and older workers (1998-2002)

14

12

10

8

6

4

L

2

P

0

UK

I

D

)
4
6
-
5
5
(
s
r
e
k
r
o
w

r
e
d
o

l

DK

A

FIN

NL

S

IRL

B

EU15

F

E

-4

-2

EL

0

2

4

6

8

10

12

14

younger w orkers (15-24)

Source: Eurostat, Labour Force Survey, spring results. 

22 

 
 
  
 
 
 
 
 
Chart 5: Percentage of older workers working less than 15 hours a week 

Percentage of older workers (55-64) working 
less than 15 hours a week

1999

2002

16

14

12

10

8

6

4

2

0

B

DK

D

EL

E

F

IRL

I

L

NL

A

P

FIN

S

UK Total

Source: Eurostat, Labour Force Survey, spring results. 

Note: due to small sample size, EL 1999 and L 2002 data are uncertain and EL 2002 and L 1999 are not available. 

Chart 6: annual growth rates in full-time and part-time employment for older workers 
(55-64) – 1997-2002 – EU15 

Average annual growth rates 1997-2002 - Full Time 
Employment for older workers (55-64)

M en

Women

To tal 

)

%

(

h
t
w
o
r
g

l

a
u
n
n
A

14
12
10
8
6
4
2
0
-2
-4

B

DK

D

EL

E

F

IRL

I

L

NL

A

P

FIN

S

UK EU15

Source: Eurostat, LFS

23 

 
 
  
 
 
 
 
 
Average annual growth rates 1997-2002 - Part Time 
Employment for older workers (55-64)

M en

Wo men

To tal 

)

%

(

h
t
w
o
r
G

l

a
u
n
n
A

25

20

15

10

5

0

-5

-10

B

DK

D

EL

E

F

IRL

I

L

NL

A

P

FIN

S

UK EU15

Source: Eurostat, LFS

Chart  7:  Percentage  of  the  labour  force  participating  in  education  and  training  by 
gender – EU15 - 2002  

Total

Female

Male

%

18

16

14

12

10

8

6

4

2

0

25-29

30-34

35-39

40-44

45-49

50-54

55-59

60-64

Age

Source: Eurostat, Labour Force Survey, spring results. 

24