ACTIVE AGEING

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ACTIVE AGEING

• UNIVERSITY OF CYPRUS
• DEPT. OF SOCIAL AND POLITICAL SCIENCES
• SAVVAS KATSIKIDES, Ph.D

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RESEARCH RESULTS OF CYPRUS

• Main Demographic Trends
• Facts and Figures of an ageing force
• Results of the field study

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Main demographic trends

• In 2004, the population of Cyprus was 749,200
  people.
• The male population was 49,28 of the total,
  while the female population was 50,72, exceeding
  the male by 1,44.
• In 2003, the people aged 55-64 were 37,970 in
  contrast to 35,674 in 2000. That is an increase
  of 5,16 in a three-year period. (The total
  population of the country, however, increased
  only 4,13 during the same period).

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• Population of Cyprus

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• The Projection (next slide) further confirms the
  demographic trend in the country for the next 25
  years. This trend is characterized by
• lower fertility rate
• higher expectancy rate
• a lower migration rate.
• This means that a larger percent of the
  population will be in the age of 55-64 as time
  progresses. It is estimated that the percentage
  of the population over 60 years of age will
  increase from 15,7 in 1998 to 23,1 of the total
  population in 2028 with a more rapid increase of
  those over 68.

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(No Transcript)
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Ageing Workforce

• Employment
• The employment of older workers has increased by
  0,5 since the year 2000 and remains very close
  to the Stockholm target of 50 by 2010. Yet the
  Cyprus Government has set a strategic target of
  52 percent employment for the people 55-64 of age
  by 2006.

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Cyprus v. EU
The number of people (age 55 and 64) who are
employed are almost fifty percent of the total
population of their age group, higher than the
average of 41 percent in the EU.
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The total unemployment rate reached 5,2 in 2004.
Although the Cyprus total unemployment rate is
only 57.7 of the average EU (25), it is higher
by 0,7 in comparison to the year 2003 and 1.3
of the year 2002. The rising unemployment
signals risks for the older workers, particularly
in view of the additional migrant workers in the
labour force of the island. The table below
illustrates the rising unemployment trend.  

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Average exit age from the labour force
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Legislative interventions and other specific
policy issues, maintaining older workers in
employment

• National Action Plan
• Within the framework of the Employment Guidelines
  adopted by the European Council and the Broad
  Economic Policy Guidelines (BEPGs), Cyprus has
  prepared its first National Action Plan for
  employment covering the period 2004-2006. This
  plan lists all policy issues of the Republic of
  Cyprus concerning employment

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Cyprus National Plan for Employment and Active
Ageing

• The maintenance of older workers in employment
  is envisioned mainly (if not solely) through the
  gradual extension of the retirement age from 63
  to 67 years.
•      No measures are foreseen exclusively for the
  older workers.
•      Any reference to promotion of active
  ageing is a general remark to the Guidelines
  adopted by the European Council.
•    

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(continued)

• Older persons are often grouped with unemployed,
  disabled people, and women.
• Although benefits for older persons could be
  drawn for employment actions (such as the
  modernisation of Public Employment Services)
  those cannot be considered interventions directly
  linked to the older persons.

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Tools and Measures

• The only identified measure in promoting the
  employment of older workers is a plan for the
  self-employment of people over 63.
• This plan grants up 1500 pounds for the purchase
  of equipment for elders who are 63 and over and
  whose income is no more than 400 Cyprus pounds
  (or 500 Cyprus pounds for a couple).

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Active AgeingField Research

• The survey was conducted between the 27th to the
  31st of December 2005. Ten (10) unemployed were
  interviewed living in the area of Nicosia. The
  sample was selected randomly and it is
  constituted of 50 women and 50 men.

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Sample Characteristics(Unemployed)

• The age frequency was as follows
• 70 percent was between 55-60, while 30 percent
  was between of 60-65. 40 percent of the sample
  had low education (primary education) 40 percent
  of the sample had mid level education (high
  school) while 20 percent had received higher
  education (college or university degree). The
  vast majority had experienced unemployment of up
  to 8 months (80 percent). Only 20 percent has
  experienced unemployment for more than a year.

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UnemployedOpinions

• As main reasons for the unemployment of older
  workers are sited the following
• (a) discrimination against older people,
• (b) the inability of older workers to re-enter
  the labour market.
• The majority of the respondents (70 percent) do
  not believe that the companies are willing to
  employ older workers. Older workers site as the
  most important reasons a) financial, and b)
  the preference of the companies to invest in
  young people.

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(continued)

• More than half of the respondents (60 percent) do
  not believe that satisfactory training
  opportunities are offered to older workers.
• 90 percent of the sample believes that the older
  workers prefer free time activities while only
  10 percent said that they prefer the pension

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Sample Companies

• 10 companies were interviewed. The companies were
  in the Nicosia area.
• 20 percent of the sample was industrial
  companies, 20 percent was in the consultancy
  business 20 percent belonged in the services
  sector. 10 percent of the sample was companies of
  the research, insurance, travel, and retail
  sector.
•  Size The vast majority (thirty percent) of the
  companies had fewer than 10 employees.

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Companies and Active Ageing

• All respondents said that their company had no
  policy regarding older workers in terms of
  training, mobility, etc.
• The most important reasons for the low employment
  rate of the older workers were identified as the
• (a)    Discrimination against older workers (80
  percent of the responses)
• (b)   Decreased capacity for productivity on
  behalf of the older workers (70 percent of the
  responses)

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Company initiatives for ageing workers

• Four fifths of the sample says that the companies
  are not willing to employ older people.
• The majority (45 percent) site as number one
  reason the view that older workers have low
  performance.
• Almost one-fifth (18 percent) sites as the number
  one reason the absence of technology knowledge by
  older workers.

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(continued)

• I8 percent also sites the financial reason as
  number one obstacle in hiring older workerswhich
  it is translated younger worker, lower pay.
• Almost one tenth of the respondents claim that
  the companies have no incentives to hire ageing
  workers.

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Active Ageing The challenge

• At the governments level the ageing challenge
  in Cyprus is currently viewed in terms of
  increasing the retirement age. No consideration
  is given to the situation where older workers may
  have to switch jobs, are laid off, and in both
  scenarios their age becomes a barrier in finding
  employment.
• At the enterprises level employing older workers
  is not even an issue for consideration. As older
  workers, lack know-how of new technology and
  viewed as high cost employees, the enterprises
  are not willing to employ them.