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AGEING AND EMPLOYMENT POLICIES
THE NETHERLANDS
WORKING BETTER WITH AGE
Dutch Ministry of Social Affairs and Employment,Wednesday 16 April 2014
Stefano ScarpettaDirector for Employment, Labour and Social Affairs, OECD
Outline of the presentation
• The labour market situation of older workers in the Netherlands
• Key recommendations for the Netherlands
• Working Better with Age: the OECD review
THE LABOUR MARKET SITUATION
OF OLDER WORKERS
IN THE NETHERLANDS
The effective labour market exit age in the Netherlands has reached the OECD average
Source: OECD
1970
1972
1974
1976
1978
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
50
55
60
65
70
75
80
Netherlands OECD country with highest age OECD country with lowest age OECD average
1970
1972
1974
1976
1978
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
50
55
60
65
70
75
80
Men Women
The employment rate of 55-64s in the Netherlands is above the OECD average
Employment rates (55-64), 2007 and 2013
As a percentage of the population aged 55-64
Turkey
Sloven
iaGree
ce
Hungar
y
Luxem
bourg
Poland
Belgium Ita
lySpa
in
Slovak
Republi
cAus
triaFran
ce
Portuga
lEU
Irelan
d
Czech
Republ
icOECD
Mexico
Finland
United
Kingdo
m
Netherl
ands
Canada
United
States
Austral
ia
Denmark
Estonia
German
yChil
eKore
aIsr
aelJa
pan
Norway
Switzerlan
d
Sweden
New Zeal
andIce
land
0
10
20
30
40
50
60
70
80
90
2013 2007
Source: OECD estimates based on national labour force surveys.
… but lags behind concerning working after 65
Employment rates (65-69), 2007 and 2012
As a percentage of the population aged 65-69
Source: OECD, Working Better with Age, Netherlands – Figure 2.1.
ISLKOR
NZLMEX
JPN
CHLISR
USAEST
AUSNOR
CANPRT
CHETUR
GBRSWE
OECD IRLDNK
NLD FINEU21 DEU
POLCZE
AUT ITASVN
GRCLU
XFRA
HUNESP
BELSVK
0
10
20
30
40
50
60
2012 2007
A strong part-time culture in the Netherlands: 66% of women and 16% of men aged 55-64 work part-time compared with respectively 29% and 10% in OECD average
Part-time work, 2012 As a percentage of employment in the age group
SVKCZE
ESPEST
HUNUSA
GRCPOL ISR
LUX
DNKSVN
FRADEU EU
SWEKOR ISL
ITACAN
OECDAUT
NZLNOR
JPN
BELCHL
AUS IRLFIN
PRTMEX
GBRTUR
NLD CHE
0
10
20
30
40
50
60
70
55-64 25-54
SVKHUN
CZEEST
GRCUSA
KORSVN
SWEPOL
DNK FINESP
PRT ISLISR
CANFRA EU
CHLOECD
NOR ITANZL
MEXTUR
AUSAUT
LUX
JPN
DEUBEL
GBR IRLCHE
NLD
0
10
20
30
40
50
60
70
Men
Women
Source: OECD, Working Better with Age, Netherlands – Figure 5.9.
Full-time equivalent employment rates of 55-64s are lower than the OECD average, particularly for women
Employment rates (55-64) (%) adjusted by working hours, 2012
Source: OECD estimates based on national labour force surveys.
Turkey
Sloven
ia
Belgium Ita
ly
Greece
Austria
Luxem
bourg
Poland
Netherl
ands
Irelan
d
Hunga
rySpa
in
Slovak
Republi
cMexi
co EUFran
ce
Portug
al
Czech
Republ
ic
United
Kingdo
mOECD
Switzerla
nd
German
y
Austra
liaChil
e
Canad
a
Denmark Isr
ael
United
States
Finlan
d
Norway
Korea
New Zeal
and
Estonia
Sweden
Icelan
d
0
10
20
30
40
50
60
70
80
Full-time equivalents Raw
Sloven
ia
Hunga
ry
Belgium
Luxem
bourg
France Ita
ly
Portug
al
Poland
Greece
Turkey
Spain
Austria
Finlan
d
Slovak
Republi
cIre
land EU
Estonia
Netherl
ands
Denmark
Czech
Republ
icOECD
Canad
a
United
Kingdo
m
United
States
German
yNorw
ay
Austra
lia
Sweden
Switzerla
ndIsr
ael
New Zeal
and
Mexico
Korea
Icelan
dChil
e
0102030405060708090
100
Full-time equivalents Raw
Men
Women
Long-term unemployment is high for those above the age of 55
Incidence of long-term unemployment (55+), 2012As a percentage of unemployed aged 55+
KORMEX
CAN ISRNOR
NZLSWE
AUSTUR
JPN
USALU
X FINPOL
DNKOECD
GBRCZE
AUTSVN
EU21 NLD ISLITA
HUNFRA
ESPDEU
ESTGRC
PRTSVK
BEL IRL
0
10
20
30
40
50
60
70
80
Source: OECD, Working Better with Age, Netherlands – Figure 2.2.
The hiring of older workers in the Netherlands is well below the EU average
Hiring rate by age group, 2012a
Percentages
a) For each age group, employees with job tenure of less than one year as a percentage of all employees.Source: OECD, Working Better with Age, Netherlands – Figure 2.6.
BEL LUX GRC NLD ITA SVN NOR IRL SVK ESP CHE AUT EU PRT FRA DEU GBR CZE EST POL FIN SWE ISL DNK HUN TUR0
5
10
15
20
25
30
55-64 25-54
Inflows into disability benefits of 55-64s are lower than in 2002 but there is not enough focus on re-entry to work
Inflows into disability benefits between the age of 55 and 64, by gender, Netherlands, 2002-12
As a percentage of the population in each group
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 20120
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1
Men Women Total
Source: OECD, Working Better with Age, Netherlands – Figure 3.2.
The Dutch age-wage profile of full-time workers is steeper than in Denmark, Sweden and the United Kingdom
Indexes, age 25-29=100, 2010
60
80
100
120
140
160
180
20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64
Denmark
Netherlands
United Kingdom
Sweden
Source: OECD Earnings Database.
WHAT MORE SHOULD BE DONE IN THE
NETHERLANDS?
In response to the 2005 OECD recommendations, the Netherlands implemented several substantial policy initiatives to encourage work at an older age but there are still challenges
The aims of the review are to:
Assess these policy initiatives and their impact on the employment situation of older workers
Identify areas where more should be done, covering both supply-side and demand-side aspects
Working Better With Age: the Netherlands
• Promote longer contribution periods in second-pillar pension schemes and increase flexibility in withdrawal and combinations of pension and work to encourage longer careers
• Reduce the maximum duration of UI benefits combined with better activation of all unemployment benefit recipients, including for the unemployed over 60 who are receiving Income Compensation for Older Unemployed (IOW)
• Keep replacement rates of sickness and disability benefits below 100%, and give access to wage-compensation already in the sickness benefit period for re-entry to new jobs with a lower wage
First areaImproving work incentives
• Encourage the social partners to adjust wage setting procedures by focussing more on performance and less on tenure and seniority
• Ensure that new practices among innovative firms in the Sustainable Employability programme are promoted and progressively become national standards
• Better targeting of measures to reduce cost disadvantages, increase employability and promote recruitment of older workers
Second areaTackling employment barriers on the side
of employers
• Link training measures for older unemployed directly to a specific job
• Tighten co-operation between the Public Employment Service and the municipalities to increase re-entry to work for the older unemployed
• Mobilise more fully labour resources by supporting initiatives to facilitate working on a full-time basis or longer working hours for part-time workers
Third areaImproving the employability of older workers
WORKING BETTER WITH AGE
THE OECD REVIEW
The first OECD review on older workers:Live Longer, Work Longer
2003-2006 OECD review
21 country reports (including the Netherlands in 2005):Ageing and Employment Policies
And a synthesis report (2006): Live Longer, Work Longer
Agenda for policy actions in three broad areas to encourage work at an older age:
1. Rewarding work2. Changing employer practices3. Improving employability
• Policy review: recent reforms and measures presented in 21 country notes (situation mid-2012) http://www.oecd.org/els/employment/olderworkers
• 2013 Employment Outlook: focus on changes in labour market outcomes for older workers since the start of the global financial crisis
• Country case studies
– Norway: publication in 2013
– France, Netherlands, Switzerland and Poland: publications in 2014
– Denmark, Korea and Slovenia: publications in 2015
• Policy synthesis report end-2015
Follow-up review: policy review, empirical study and country studies
Thank you!
For further information
http://www.oecd.org/els/employment/olderworkers