Age discrimination at work

 Age discrimination is not just a Canadian issue, in Finland, this is an issue that has made the press. In an online article, the issue is addressed.

The government is betting on older workers to help it meet employment targets, but employers tend to avoid hiring over-55s.

Government’s aim of increasing employment among older workers will run into the reality that employers tend to overlook over-55-year-olds when they recruit new employees, according to the labour market experts.

Budget negotiations that began on Monday will seek to find ways to meet the government’s ambitious target of creating 60,000 new jobs during its term in office. One of the strategies under consideration involves getting older job seekers into work and a new report from the Ministry of Finance is proposing that senior workers could account for half of the 60,000-job target.

However, the age of 55 is often cited as the threshold for being considered past viable and several analyses have found that employers prefer not to take on jobseekers in this age group. According to Statistics Finland's May labour force survey, the number of unemployed jobseekers were highest in the 55 - 64-year-old age group (64,000) between 2010 and 2018.

Pirjo Juvonen-Posti, a lead specialist with the Finnish Institute of Occupational Health (FIOH) and Katri Ojala, also head specialist with Akava, the union representing professional and managerial workers said that the perception that 55 is too old to work is the result of a decades-old practice of grandfathering senior workers out of the labour force.

"For many decades we have been taught that we can gently transition over-55-year-olds out of working life through unemployment pensions and early retirement schemes," FIOH’s Juvonen-Posti noted.

The specialists added that in the past, many employers were strapped for cash, so it was easy and convenient to offer seasoned employees a suitable path to retirement.

As the system became a sufficiently entrenched and long-standing part of working life, employee attitudes also began to change. The idea of a reasonably long professional career changed and many no longer aspired to one.

The result was that through an odd set of circumstances, 55-year-olds began to be seen as past their prime, even if some of them were in the best shape of their lives.

Attitudes need to change

Akava’s Ojala said that attitudes to older workers need to change.

"Unfortunately, there are certain attitudes in the labour market, for example, there is a misconception about how costly it is to hire people in this age group. This may in turn lead to age-based discrimination," Ojala said.

It is even debatable whether the term "aged worker" should be used, since this cohort is still of working age and very often constitutes experienced professionals.

Juvonen-Posti said that ageism is still evident in labour market practices, for example in the age structure of the company payrolls.

"And it also shows in the experiences of over-55-year-olds when they try to find work," she added.

While advancing age may bring certain health problems, this may be a signal to alter workers’ job descriptions, something employers are reluctant to do, the experts noted.

Both Ojala and Juvonen-Posti said that attitudes towards older workers need to change and that no one should encounter discrimination based on age or changes in their working abilities.

They also pointed out that while it is important for workers to maintain job-related skills, that is the shared responsibility of both employers and employees.

Trends in retirement

I love collecting facts and sharing them, I recently came across some interesting stats about what we are doing when we retire. Here they are with sources.

More than 9.4 million Americans over the age of 65 held either a full- or part-time job in February 2018 – a 63 percent increase from the 5.7 million older workers in the previous decade.

U.S. Bureau of Labor Statistics (BLS), Labor Force Statistics from the Current Population Survey, March 2018.

Today, 74 percent of currently employed adults plan to work past the retirement age. This is a significant shift since 1995 when almost one-half (49 percent) of non-retirees expected to retire before age of 65 and only 14 percent of non-retirees expected to retire after 65.

Gallup, Most U.S. Employed Adults Plan to Work Past Retirement Age, May 2017.

As the labour-force participation rates of younger workers began to decline in the late 1990s, the rates for the older workers continuously increased. In 1997, workers age 65 or older accounted for 4.1 percent. By 2012, workers age 65 or older accounted for 7 percent.

Employee Benefit Research Institute (EBRI), Labor-force Participation Rates of the Population Ages 55 and Older, 2013, April 2014, p. 6.

Over the decade 2016–2026, the growth in the labour force participation rate of the 65- to the 74-year-old age group is expected to be 50.3 percent, and the growth in the labour force participation rate of the 75-and-older age group is expected to be 91.5 percent, compared with a 6.6 percent increase for the labour force as a whole.

BLS, Projections of the labour force, 2016–26, November 2017.

The male labour force participation rate (ages 55+) rose from 37.7 percent in 1993 to 46.5 percent in 2013. Over the same period, the female labour force participation rate (ages 55+) rose from 22.8 to 35.1 percent.

EBRI, Labor-force Participation Rates of the Population Ages 55 and Older, 2013, April 2014, p. 2.

40 percent of workers ages 65 and older and 27 percent of workers ages 55 and older worked part-time in 2016. Workers ages 65 and older are more than twice as likely to work part-time as workers ages 25–64.

BLS, Older workers: Labor force trends and career options, May 2017; AARP, Older Workers and Part-Time Employment, February

Among all age groups, women are more likely than men to work part-time. At ages 65–74, 53 percent of women and 37 percent of men who are employed work part-time. At ages 75 and older, 55 percent of women and 46 percent of men who are employed work part-time.

AARP, Older Workers and Part-Time Employment, February 2018, p. 2.

The labour force participation rate of those 55 or older increased from 35.6 percent in 1987 to 44.5 percent in 2012, with more highly educated people in this age group. The number of those 55 or older with a bachelor’s and/or graduate degree rose from 19.4 percent in 1987 to 36.7 percent in 2012.

EBRI, Labor-force Participation Rates of the Population Ages 55 and Older, 2013, April 2014, p. 6 & 9.

Income for workers ages, 62 to 64 is increasingly tied to health status, which deepens income inequality at older ages. Older adults with limited education and income, who stand to gain the most from working longer, are more likely to have health problems than their higher-earning peers.

Urban Institute, Delayed Retirement and the Growth in Income Inequality at Older Ages, February 2018, p. 16-19.

Concerns of Boomers

 The senior advocate spent some time talking to seniors in my province and in her report listed 13 major concerns of seniors. These are (in no particular order):

1. Being unable to continue to live where they want. Seniors are concerned that, because of a lack of supports and/or because of regulatory roadblocks, they will be forced to move. Across the spectrum of housing, from the single family house to the condominium to assisted living and residential care, seniors identified issues that potentially pushed them to the next level on the continuum prematurely. Some of these issues were financial in nature, others were regulatory, and some related to the lack of adequate supports in a particular community to enable a senior to remain at home.

There were stories of seniors being pushed out of their homes because they could not afford simple repairs and maintenance such as roof replacements or furnace repairs. There were stories of seniors who were challenged by a lack of home care services, who needed assistance with household chores such as snow shovelling or chopping wood. Isolated seniors were challenged by a lack of, or inadequate, transportation.

Seniors universally felt that their first choice was to remain in their own homes, and that all possible supports to achieve this should be fully utilized before a move to the next level on the housing continuum is required. Evidence suggests that, given more support in the community, some seniors could have delayed or prevented the move to assisted living, and that changes to the current assisted living regulations could have delayed or prevented the move to residential care. Seniors voiced that this is particularly significant given the scarcity of residential care that exists in some areas and the fact that, in some cases, residential care is clearly the appropriate choice given a senior’s care needs.

2. Having an adequate income to meet future health and housing needs. Seniors described facing economic hardship as a result of unforeseen expenses and rising costs. Statistics Canada data indicates that most seniors in British Columbia live on less than $25,000 per year. Provincial data shows that more than 52,000 seniors in B.C. live on $17,000 per year or less. In particular, many seniors identified that costs related to their housing, dental care, drugs, eyeglasses and hearing aids are causing current hardship or worry about future hardship. Federal and provincial governments provide a number of programs and subsidies to assist low-income seniors. Most seniors however, voiced their frustration with how they access those programs and with the bureaucracy involved in securing and keeping those benefits. Many questioned the adequacy of some programs that were established years ago and may not have kept pace with inflation. It was identified that no programs exist to help seniors with dental care, eyeglasses and hearing aids unless they were on certain types of income assistance before becoming seniors.

3. A lack of transportation to medical appointments and support services. Many seniors expressed grave concerns about their ability to get out and about once they are no longer able to drive. There were emotional stories from seniors about the trauma they experienced from the driving assessment process, and the devastation they faced upon losing the independence that driving provides. Those seniors who no longer drive appreciate services such as HandyDART, but they also highlighted concerns about the limitations of such services, frustrations around processing applications, wait times, frequency, and the cost for low income seniors.

4. A lack of, and inconsistency with, home care services across the province. The type and frequency of home care services varies significantly throughout the province. Needs appear to be met in some communities, but fall short in others. The elimination of meal preparation, reductions in services due to staffing shortages, changes in staffing, the availability of live in and overnight respite, day programs and residential respite care in some communities and not in others, and concerns about the capacity of the new Better At Home program were among the issues seniors and their family members raised. Inconsistency in the provision of home nursing services, and limited rehab for clients in the community and in assisted living, were also highlighted as gaps

5. The inability to secure a residential care bed at the right time and in the right place. Access to, and types of, residential care bed varied greatly throughout the province. In some communities, the average wait time to secure a first available and appropriate residential care bed (FAAB) is 32 days, whereas in others it is more than 89 days. It is not clear to the Advocate that the Ministry of Health’s FAAB policy is consistently applied in all health authorities. Local conditions significantly influence when and where a senior secures a FAAB. In addition, while provincially, 69 percent of seniors secure a FAAB within 30 days, in some communities only 30 percent of seniors secure that crucial bed within that time. In addition, families expressed significant frustration with the time it takes a senior to secure a bed in their facility of choice. The impact on seniors of the location of their care facility can be profound, as it often dictates the ability of a frail spouse and other family members to visit their loved one. Research clearly supports the positive therapeutic effects on residents of visits from family members. Health authorities recognize that they do struggle on this issue, but there was some evidence to suggest improvements could be made that would allow the objective of the FAAB policy to be met while reassuring families with a reasonable and accurate estimate of time to move to a facility of their choice.

6. Concerns about the quality of care in residential care facilities. Seniors and family members shared stories of their experiences with residential care that ran the gamut from “exceptional” to “appalling”. The care and compassion of staff was the most cited reason for satisfaction, and lack of staff and food quality were most often cited as reasons for dissatisfaction. In some communities, residential care facilities offered a single room with en suite bath, while others had more limited options, including four beds to a room with shared bath, while charging residents the same – 80% of income. Concerns were expressed by unique populations, most notably the multicultural, First Nations and lesbian, gay, bisexual, transgendered and queer (LGBTQ) communities, about discrimination in residential care and assisted living and the lack of culturally sensitive care. Many service providers acknowledged the need for more education and training to ensure that all residents feel safe and respected regardless of their ethnicity or sexual orientation

7. Proper dementia care. Whether seniors were housed in a residential care facility or in the community, there were concerns about the availability of supports necessary to provide proper dementia care. In facilities, this related to the physical environment, the training and clinical expertise of staff, the level of staffing and the use of antipsychotic drugs. In touring several facilities and meeting with service providers, it was clear that best practices are in place in some facilities and not others. Proper training of staff, the proper number and complement of staff including recreational, occupational and physical therapists, and the use and tracking of anti-psychotic medication varied across the province. In the community, there are concerns about getting support when needed and in properly addressing the possibility for those with dementia to wander and get lost. Linking families that are caring for a loved one with dementia to community resources is a challenge in some places, particularly in more rural and remote parts of the province.

8. Fragmentation of services. Seniors recognize that a significant number of services and supports are available to them; however, knowing what those services are and how to access them can be difficult, and navigating the application paperwork involved is daunting. A streamlined system of access, and better awareness of what services and supports are available, is required before the government and health authorities can be confident that the services they offer to seniors are actually being delivered.

9. Caregiver burnout. A significant number of seniors spoke of their role as an unpaid caregiver to a spouse or parent who is most often suffering from dementia. Seniors were unanimous in their commitment to care for their loved one and in their willingness to sacrifice many of their own needs, but they clearly require more support. Additional resources ranging from day programs that have been reduced or eliminated, to respite beds that are either overbooked or not available, to using home support as respite, not just care, were among the supports identified as lacking

10. Elder abuse. Seniors, service providers and stakeholders all shared their worries about the growing abuse of seniors. Concerns include:
abuse by paid caregivers, and questions about the regulatory adequacy of the Care Aid Registry to monitor:

• the concern about abuse of seniors within families, particularly financial abuse;
• resident-on-resident abuse in care facilities;
• conflict between concerns of self-abuse / neglect and personal autonomy.

 11. An ageist society that devalues seniors. A clear message from seniors was their strong desire to ensure that society values what they can do and their sense that they often feel “invisible”. While some seniors do need assistance, seniors actively contribute to their communities in many ways and their contributions should be recognized. Many, many seniors expressed their dismay at the portrayal of seniors as a drain on the system. Seniors spoke of the contributions they make as volunteers, as unpaid caregivers and donors to many philanthropic causes, and pointed to the taxes they pay and have paid in support of services available to all British Columbians.

12. A lack of respect for the decision-making abilities of seniors. While it is recognized that some seniors lack the capacity to make sound decisions, many seniors feel that long before this happens, care professionals and even family members begin to assume they know what is best for seniors. Respecting the right of seniors to make their own decisions will require a paradigm shift for everyone who is involved in the lives of seniors.

13. Challenges faced by the multicultural community. The multicultural community is concerned about a number of challenges faced by seniors who came to Canada from other countries. Their financial status can be precarious as they are often not able to enjoy the full benefit of a number of entitlements, and their isolation and loneliness can be exacerbated by language barriers. While not wholly successful in directly reaching some seniors in the multicultural communities, the Advocate focused, by necessity, more on the stakeholders and providers who serve them

Will you be encouraged to work after 67?

Two questions raised by Donna McCaw  in a recent article bear some consideration. The first question is about poverty in the over 65 crowd.

She states, that based on a the Luxembourg Income study the Canadian middle class is the richest in the world along with Britain, and richer than our American counterparts! Great news for the middle class, however, the elderly poverty rate has been rising since the mid 1990’s and then there are the bankruptcy rates for the over 65 crowd to consider.

The conference Board of Canada states that by 2050, the number of people aged 65 and older will more than triple, to 1.5 billion worldwide. Aging presents a significant challenge to the long-term sustainability of public finances through increases in demand for public pensions, health services, and long-term care in Canada and its peer countries. Together, rising life expectancy and low fertility create a demographic pincer movement, the impact of which is sharpened by increasingly early retirement. In Europe, there are about 35 people of pensionable age for every 100 people of working age. If present demographic trends continue, there will be 75 pensioners for every 100 workers in 2050.

Canada, like its peers, has a greying population. In 2030, an estimated 23 per cent of the Canadian population will be over age 65, double the share in 1990.

Elderly poverty is both a social and a fiscal problem that will be exacerbated as higher percentages of populations in developed countries move into the over-65 demographic. Poverty rates among the elderly tend to be highest among women, particularly widows over the age of 75. This is largely due to pension allowances that have traditionally been linked to employment history

Should we be concerned because in   Canada,  the poverty rate  amongst seniors is now at 6.7 per cent.  Canada’s publicly supported retirement security system comprises a universal component (Old Age Security), a negative income tax (Guaranteed Income Supplement), and an earnings component (Canada/Quebec Pension Plan). The first two establish an income floor that is available to all, regardless of participation in the paid labour force. Canada over time has reduced the poverty rate amongst seniors.

Dalhousie University economics professor Lars Osberg has called the reduction in the elderly poverty rate over the past three decades “the major success story of Canadian social policy in the twentieth century.

According to OECD data, Canada’s elderly poverty rate increased from 2.9 per cent in the mid-1990s to 6.7 per cent in the late 2000s. The biggest jump occurred in the group of elderly people living alone—most likely widowed women.

Statistics Canada, however, has Canadian data going back to 1976. Using this data set, Canada’s elderly poverty rate fell by an extraordinary 25 percentage points—from 36.9 per cent in 1976 to 12.3 per cent in 2010.

The pronounced decrease in Canada’s elderly poverty rate has largely been attributed to the implementation of the Canada Pension Plan and Quebec Pension Plan in 1966. Pensions as a proportion of disposable income among Canada’s elderly more than doubled between 1980 and 1996, from 21 to 46 per cent.The first cohort to receive full public pensions turned 65 in 1976. The generation that followed became the first beneficiaries of private occupational pensions that were expanded between the 1950s and the 1970s.

According to a recent Statistics Canada report, the increase in the low-income rate for seniors indicates that their income has not risen as quickly as the income of non-seniors. The report’s authors suggest that a possible factor behind the slower growth of seniors’ income was the slowed growth of government transfers to seniors: Starting from the early 1990s, the median government transfers to seniors increased at a slower rate relative to the period before the early 1990s. Indeed, from 1976 to 1994, the annualized growth rate of median government transfers to seniors was 8.7 per cent, while from 1995 to 2009, the annualized growth rate was 2.0 per cent.

If current trends continue, the sustainability of public pensions and Old Age Security may be at risk and that may mean an increase in poverty amongst seniors.

There are a number of ways to offset the labour force and fiscal pressures that will arise as a result of Canada’s aging population: The one favoured by the Conference Board of Canda is to develop policies and practices to increase the labour force participation of older people

Indeed, most developed countries have introduced policies and organizational practices that target older workers, including:

• reducing incentives for workers to take early retirement
• encouraging later retirement and flexible retirement
• passing legislation to counter age discrimination
• helping older workers find and keep jobs