Keith Frost Age & Employability SLIM Conference Feb 2005 © TAEN 2005

Third Age Employment Network TAEN TAEN is a national network of circa 250 independent groups and organisations committed to better opportunities to work, earn and learn in mid and later life. TAEN is recognised as a centre of expertise on age & the labour market. TAEN influences public policy and champions the contribution that age diversity in employment makes to business success and a healthy society. Information Line for older jobseekers and employers Membership £150

Age & Employability Breaking Down The Barriers: Agenda Demographics Employment Trends & Local Labour Market Information Skills Shortages Barriers Indentified by the National Audit Office The NAO’s Recommendations 2005 ‘Age & Employment’ Agenda Events.

Food For Thought…… “ The dominant factor for business in the next two decades …….is not going to be economics or technology. It will be demographics.” Peter Drucker – essay : ’The Future Has Already Happened’.

Age & Employability Breaking Down The Barriers: SW Population Trends

UK Employment Rates Men Men 50-SPA Women Women 50-SPA Employment Rate %

Age & Employability Breaking Down The Barriers – SW LMI –largest, and rising, proportion of older people: 2.2 million (44% 45+) –805,000 aged 50-SPA. –Smallest proportion of population of year olds –Employment rate 50-SPA = 74.3%. = 599,000 (ONS Spring 2004) –Employment rate SPA+ = 112,000 –ILO Unemployment rate 50-SPA = 2.3% –Economic Inactivity rate 50-SPA = 25% = 210,000 –Economic Inactivity rate SPA+ = 89% = 910,000 –% 50-SPA on IB / SDA = 10.2% = 83,000. –Estimate 250,000+ more 50+ year olds in SW would like to work.

Skills Shortages in Great Britain Top skill shortages confronting employers Management Marketing Customer care Team Working Selling Problem Solving Source:: Regional Survey of UK Economic Trends : CBI : Apr In many areas there are organisations who regularly shed highly skilled & experienced older workers with these very skill sets. Many want to go on working but meet barriers of ageism…

Age & Employability Barriers To Older Workers Identified by the NAO* Age Related Barriers :- –Employer Attitudes –Health Condition or disability –Lack of Qualifications / work experience –Low Basic Skills –Jobseeker Attitudes / Lack of Confidence –Caring Responsibilities –Financial Non-Age Related :- –Labour Market Barriers (lack of suitable jobs) –Benefit disincentives / Transport difficulties *’ Welfare to Work: Tackling the Barriers to the Employment of Older Workers’ : National Audit Office Sept 2004

Age & Employability Barriers To Older Workers Identified by the NAO* Employer Attitudes :- Age discrimination most common form of workplace discrimination. Negative perceptions about the capability in employment of older people based on myths & stereotypes. Denial of prejudice and that problem exists. Recruitment, Retention, Promotion, Training policies and practices all negatively impacted. Despite tight labour market, difficulties with recruitment, increasing skills shortages, high unit labour costs, publicity and research about benefits of older workers,<30% of employers targeting older workers as potential labour source. Despite Age Positive campaign, Code of Practice on Age Diversity and proximity of age regulations, <40% of employers currently have age policies in place.

Age & Employability Barriers To Older Workers Identified by the NAO* Health condition or disability :- Health conditions increase with age. “ However, these health issues will only prevent a minority of people (over 50) from continuing to work effectively.” Lack of formal Qualifications :- Makes it more difficult to compete in the labour market. Skills fade and obsolence. “ The extent to which older workers will be in a position to stay longer in the labour market depends crucially on the opportunity to maintain and develop their skills.” Ageing and Employment Policies UK : OECD : Sept All working age adults adults over 40 Adults below level 2 11,273,000 6,451,000 (57%) Level 2s gained 247,000 42,000 (17%) Sources : Table 7, DfES Research & Stats.,Table 4.9 Statistics for Education 2003

Source: Age data from Labour Force Survey, Spring 2001 Workforce qualifications by age

Age & Employability Barriers To Older Workers Identified by the NAO* Low Basic Skills:- “Although age is not a strong indicator of basic skills levels, many unemployed people >50 lack basic skills. For many BME groups, language may be an additional barrier” Jobseeker Attitudes :- Well qualified too selective in terms of salary and status? Inability to recognise transferable skills. Lack of motivation, confidence and self-esteem of those out of work for a long time. Winding down to retirement. Caring Responsibilities :- The ‘Care’ sandwich and difficulties of finding suitable work. Financial :- Unwillingness to reduce wage expectations to take a job.

Age & Employability Action On Skills By Government Workforce Development & Success For All strategies put in place through Learning and Skills Councils. Skills For Life – free basic skills training for adults – Literacy, numeracy, English & ITC (?) Skills training becoming ‘Demand’ led. – Regional Skills Partnerships (Apr 2004) / SSDA + SSCs TU Learning Services / Employer Training Pilots The Skills Strategy /‘New Deal For Skills ’ – Universal free adult entitlement to 1 st full NVQ level 2 (NETP) – Free information, advice & guidance – Skills passports Reform of Apprenticeships – lifting of the age cap

Age & Employability Breaking Down Barriers : NAO’s 9 Recommendations Providing local services to meet older people’s needs:- JC+ & local partners should ensure services to improve employment prospects are based on widely accepted best practice. JC+ offices and local LSSCs should align common objectives and priorities in respect of improving employability & collaborate on contracting for employment & training services. (NEP recommendation). Setting Targets :- All Govt bodies should share DWP’s priority on this issue. New performance measures for DWP & JC+ that reflect improve,ments in the employability of people who have participated in programmes but not succeeded in obtaining employment (distance travelled). RDA’s should set targets for the employment of disadvantaged groups within their regions. Building on EMDA’s work.

Age & Employability Breaking Down Barriers : NAO’s 9 Recommendations Ensuring employment programmes meet older people’s needs :- Mandatory participation for over 50s in employment and training programmes. Full economic evaluation of ND 50+ and impact of WTC on participation levels. Providing training & support :- DTI should consider whether to fund PRIME after March More LLSCs should specifically address the education and training needs of older people. IAGPs should target their services on those most likely to benefit from them. N.B. The NAO’s recommendations do not cover the Age Regulations or specific actions employers should be taking.

Age & Employability Age & Employment Events Calendar Dec 04 Decision on National Default Retirement Age. Feb 05 DWP 5 year Strategy (IB reforms / 80% Employment Rate Aspiration) White Paper on Adult Learning & Skills Mar 05 / Apr 05 White Paper on Strategy on Older People Publication of CEHR Bill Delivery Plan on the 04 Public Health White Paper (inc health and employment) May 05 General Election ? National Guidance Campaign on Age & Employment (DWP)

Age & Employability Age & Employment Events Calendar July 05 Consultation period on draft Age Regulations begins. UK Presidency of the EU (mid term review of Lisbon economic & social targets) Sept 05 Launch of BoND pilots. Launch of National Employer Training Programmes (NVQ level 2 adult entitlement) Pathways to Work pilots expansion Oct 05 Full Report of the Pensions Commission. Nov05 End of draft Age Regs Consultation

Keith Frost Age & Employability SLIM Conference Feb 2005 © TAEN 2005