active labour market policy measures for pre-retirement unemployed to integrate into labour market

ACTIVE LABOUR MARKET POLICY MEASURES FOR PRE-RETIREMENT UNEMPLOYED TO INTEGRATE INTO LABOUR MARKET

Borbély-P., Tibor Bors, Ph.D.Senior Adviser, National Labour Office, Hungary Riga, 22nd May, 2014 (2nd training day)

Part I.

Statistical portrait on pre-retirement age (55-62) group employment, unemployment in Hungary – different target groups

How is old? What is the definition of „senior workforce”?

Eurobarometer (2011) Active ageing report

Older workers in Western-Europe

Typology of different types of skill obsolescence

Technical skills obsolescence:• - wear of skills due to ageing, injuries or illness;• - atrophy of skills because of insufficient use;Economic skills obsolescence• - job specific skills obsolescence as a consequence of technological or• organisational renewal of the production process;• - obsolescence due to shifts in the sectoral structure of employment;• - firm-specific obsolescence due to firm closure or reorganisation; Organisational forgetting due to quits of workers with firm specific skills.

De Grip and van Loo (2002)

Older workforce in Hungary

Healthy Life Years (HLY) at age 65 (males) EU27 HU LV8,6 6 4,8

life expectancy at birth EU 27 HU LV77,4 71,2 68,6

Eurostat, 2011

Clients of the PES: allowances

Job-seekers benefit for pre-retirement age group

Based on the Employment Act (1991. IV.)

• registered at the local PES office; • ready for job (!); • in the register at least 45 days; • not entitled for (regular) job-seekers’ allowance (max. duration 3 monthly currently)•Amount: 40% of the minimal wage (2013: HUF 39 200 monthly (~EUR 130) , HUF 1307 (1 EUR 4,3) daily

Clients of other national agencies : allowances (2) –

rehabilitation

-since 2011 a new rehabilitation act came into force - a new national institute set up for rehabilitation and social -rehabilitation system & pensions have been reconsidered - rehabilitation pensioners more than 5 years away from retiring age have been sending back the labour market -Rehabilitation allowance 30-50% of the minimal wage HUF 29,400-49.000; (~ EUR 98-163)

Employment rates in EU-27, Hungary

Source: LFS, Eurostat

2012. Q2 2011. Q2

EU27 Hungary

Difference

EU27 Hungary

Difference

(EU-27-Hungary

)(EU-27-

Hungary)

% %-point % %-point

15-64 years 64,3 57,2 7,1 64,5 55,8 8,715-24 years 32,8 17,8 15,0 33,5 18,1 15,425-49 years 77,7 74,9 2,8 78,3 73,8 4,5

55-64 years 48,9 37,2 11,7 47,5 35,5 12,0

15-64 years

Pre-primary, primary

and lower secondary education

43,9 26,7 17,2 45,4 25,9 19,5

Upper secondary and post-secondary

non-tertiary

education

68,5 62,5 6,0 68,9 61,0 7,9

Tertiary education 82,1 78,7 3,4 82,4 78,9 3,5

Average exit age from the labour force in some EU countries (2007, 2010)

Average exit age from the labour force (annual data)

country 2010 2007 gap from EU ave. (2010) (ys.)

EU27 61,5 61,2 na

DK 62,3 60,6 0,8

SP 62,3 62,1 0,8

FR 60,1 59,3 -1,4

HU 59,7 na -1,8

LT na na na

SE 65 64,2 3,5

Eurostat

Changes in employment by gender and age (2011/2012)

HCSO,2012

Registered job-seekers by age groups 2009-2012

PES data, 2012

Part II. Hungarian Practices for integration of pre-retirement age group

55+ registered main findings

•Most of the registered 55+ are in the developed counties • 39% (2012) of them are long-term registered

Activating PES 55+ registered jobseekers

(PES data, 2012)

55+ country/region

ALMP total without ALMP

only public work training wage

subsidy enterprenuership

25,0 2,1 22,9 0,6 1,4 0,1Budapest34,6 1,8 32,8 0,3 1,5 0,0Pest megye29,4 1,9 27,4 0,4 1,4 0,1Közép-Magyarország47,2 3,5 43,6 0,3 3,2 0,1Fejér megye52,3 3,3 49,0 0,4 2,8 0,2Komárom-Esztergom megye61,4 3,1 58,3 0,4 2,7 0,0Veszprém megye53,5 3,3 50,2 0,3 2,9 0,1Közép-Dunántúl58,8 3,3 55,4 0,8 2,5 0,1Győr-Moson-Sopron megye63,5 3,0 60,5 0,7 2,1 0,2Vas megye59,8 2,2 57,6 0,4 1,6 0,1Zala megye60,5 2,7 57,7 0,6 2,0 0,1Nyugat-Dunántúl57,5 3,1 54,4 0,4 2,6 0,1Baranya megye58,5 2,8 55,7 0,4 2,4 0,1Somogy megye55,2 2,9 52,3 0,4 2,3 0,2Tolna megye57,5 3,0 54,6 0,4 2,4 0,1Dél-Dunántúl59,1 3,4 55,7 0,5 2,9 0,1Borsod-Abaúj-Zemplén megye51,8 3,1 48,7 0,6 2,5 0,1Heves megye44,5 4,4 40,1 0,4 3,8 0,0Nógrád megye55,4 3,5 51,8 0,5 3,0 0,1Észak-Magyarország45,2 3,2 42,0 0,6 2,5 0,0Hajdú-Bihar megye64,8 2,1 62,7 0,4 1,7 0,0Jász-Nagykun-Szolnok megye

70,4 2,6 67,7 0,4 2,2 0,1Szabolcs-Szatmár-Bereg megye

62,1 2,7 59,5 0,4 2,2 0,0Észak-Alföld55,0 3,5 51,5 0,7 2,7 0,0Bács-Kiskun megye66,8 3,9 62,8 0,5 3,4 0,0Békés megye52,8 2,9 49,9 0,3 2,6 0,0Csongrád megye59,2 3,5 55,7 0,5 3,0 0,0Dél-Alföld

54,6 3,0 51,6 0,4 2,4 0,1Magyarország

Thank you for your attention

Some issues for discussion

• Real exit age from the LM vs. EU 2020 goals (20-64 full empl. (75%) by 2020) • digital skills for future above 55 (not only for

work) • Low mobility at certain age• Intergenerational cooperation at workplaces • Older workers benefit/wage protection vs. open

LM