Social and labour perspective of elderly people in Hungary – changing role of elderly at the workplace

https://doi.org/10.63189/DKYP7401

„Employment problems of older workers should be dealt with in the context of an over-all and well balanced strategy for full employment and, at the level of the undertaking, of an over-all and well balanced social policy, due attention being given to all population groups, thereby ensuring that employment problems are not shifted from one group to another”*.

Since its creation, the ILO has made it one of its priorities to find solutions for the problems of older workers. This concern has first focused on questions of social security and discrimination in employment: for example, a series of international standards on invalidity, old-age and survivors’ insurance were adopted in 1933. However, since 1961, a number of resolutions adopted by the Conference have underlined the need to deal more fully with the problems of older workers. For instance, the Conference, recognizing that serious employment difficulties facing older workers persisted, noted in 1970 that the instruments adopted so far did not deal specifically and systematically with the occupational problems of these workers. The Governing Body decided in November 1977 to include this matter on the agenda of the 65th Session of the Conference with a view to the adoption of one or more instruments[1]. In 1979 the Employers’ spokesman regretted that no meeting of experts could be held in order to have a more detailed discussion on the problems of ageing workers, since not enough was yet known about the process of ageing, which was progressive and variable according to individuals, employment and countries, so that it was difficult to decide upon a definition[2].

40 years have passed since the 66th Session of the International Labour Law Conference, and ever since the workplace role of older persons has been increasingly changing due to changing economic and demographic conditions[3].

The first thing that will have to be made clear, as we consider the relation of society with the elderly, is whether there is an agreed-on age limit to which we can relate this status. That is not easily done since old age is not a static fact but a process, just as growing up is. While the latter has, of course, its own attributes such as reaching the age of majority, the right to vote, obtaining a qualification or degree, and starting a family, in the case of old age it has only one threshold - the cessation of economic activity. Retirement normally being invested with a dramatic change in life, many are keener to associate the onset of old age with this act.

As Peng and Chan point out depending on the particular area of study, the definition of ’older workers’ varies from age 40 to above 65 years. Some put the threshold at 40 or 45 years because ’old’ has something to do with obsolete knowledge, skills, and attitudes. The use of 45 years or above is in line with the criterion indicated in the Age Discrimination in Employment Act in the USA. Others defined older workers as employees aged 50 years old and above[4].

The second thing is that all countries face major challenges to ensure that their health and social systems are ready to make the most of the demographic shift. In 2050, 80% of older people will be living in low- and middle-income countries. The pace of population ageing is much faster than in the past. In 2020, the number of people aged 60 years and older outnumbered children younger than 5 years. Between 2015 and 2050, the proportion of the world’s population over 60 years will nearly double from 12% to 22%[5]. In 1980, there were 2 people older than 65 years for every 10 people of working age in the OECD. That number will have increased to slightly over 3 in 2020 and is projected to reach almost 6 by 2060. The working-age population, measured using fixed age thresholds, is projected to decline by more than one-third by 2060 in several countries[6].

The EU population is expected to rise from 449 million people in 2022 to a peak of 453 million people in 2026, before falling to 432 million in 2070. The size of the older age groups would grow, while the younger age brackets would shrink. The old-age dependency ratio is the ratio of the old-age population to the working-age population. This ratio gives an idea about the relative shift between potential retirees and potential workers and thus of how an ageing population alters the balance between beneficiaries and contributors. From about 29% in 2010 in the EU, it rose to 36% in 2022 and would rise further to 59% in 2070, with most of the increase expected already by 2045. Put differently, the EU would go from having nearly thirty people aged 20 to 64 for every ten people aged over 65 years in 2022, to having less than twenty people by 2045[7].

As people live longer and healthier lives, many continue or need to work beyond the normal retirement age, and hence, there is an increase in labour market participation. Part of the motivation is provided by greater life expectancy, improved health, and changes to pension systems. Labour force participation of 65+ in Europe and Central Asia was 7,6% (male 10,6%, female 5,5%) in 2022. It has increased slightly since 2020 when it was 7,2%. Labour force participation of 55-64 in Europe and Central Asia was 61,4% (male 69,9%, female 53,8%) in 2022. It has increased slightly since 2020 when it was 59,4%[8].

In the process of demographic change across many countries, the proportion of working-age population with that of the elderly is gradually falling. This provides the result that the older labour force is turning to be the increasingly important contributor to the workforce. The participation rate of people aged 20-64 is projected to increase from 79.4% in 2022 to 82.7% by 2070 and from 65.4% to 75.5% for people aged 55-64[9].

Thirdly, one of the most key questions which the changing role of the elderly at the workplace raises is how such a balance can be struck between sustainable solutions for our welfare system and strengthening intergenerational solidarity and fairness between young and old. There exist many interdependencies across generations that create challenges, opportunities, and questions for our societies.

The emerging dynamics of work are yielding to older workers’ comfort in the form of flexible work arrangements that could be part-time work, telecommuting, and job-sharing. Work this way would balance off between work and other life responsibilities and health considerations[10]. Continuous skills development has continued opening avenues for the older worker in training and education. Such lifelong learning programs keep them relevant and updated on emerging technologies[11].

In terms of workplace contribution older workers bring with them valuable experience and knowledge of the institutions they have worked in. They have mentorships to contribute, which might be very helpful in the training of younger colleagues and in advising on organizational strategies. To discussions, they bring alternative ways of thinking, different points of view, ways of solving problems, and generally enhance positively a team's dynamic and decision-making[12].

Even then, problems are not altogether nil. Age-based discriminations at workplaces[13] may be confronted at the time of recruitment or in considering laborers for promotion or training. Such stereotyping and discrimination, which influence the perception of the older workers about their ability to work, hamper their efficiency and development as professionals. Physiological and psychological changes in the process of aging interfere with job performance and may require concessions on the part of the employers. It is these issues that the responses of the employer through the ergonomic changes and supportive work conditions help to address such issues. With each progressing day, policies like flexible hours, ergonomic adjustments, and health and wellness programs are being adopted by employers as a means of supporting the older employees.

According to Mulders and Henkens, a majority of employers have already begun adapting human resource management practices so as to make longer working lives more possible. Especially larger organizations are very active in implementing human resource management practices in an attempt to improve the long-term employment prospects of their employees. Employers concerned with the mental fitness of their workforce regarding longer working lives are most likely to invest in information and health adjustment practices. For organizations where a high proportion of workers are older, the focus is mainly on information[14].

Appropriate conditions are essential for active participation of employers’ and workers’ organisations at all stages of the formulation of a national policy to promote equality of treatment.

With technology continuing to evolve, in the near future, older workers will be bound to continuously adapt to new tools and systems. One will necessarily have to be more technological and digitally literate in order to survive in the job market. The vistas are currently shifting to developing intergenerational workspaces where employees across all age brackets can work and interact with each other, learning from one another. It is such an approach that can help in bridging generational gaps and leveraging diverse skill sets.

* R162 - Older Workers Recommendation, 1980 (No. 162)

[1] See: The 65th Session of the International Labour Conference, June 1979, International Labour Review, Vol. 118, No. 6, November-December 1979, p. 665, https://webapps.ilo.org/public/libdoc/ilo/P/09602/09602(1979-118-6)659-678.pdf (accessed: 26 October 2024).

[2] International Labour Conference 66th Session 1980, Older Workers : Work and.Retirement, International Labour Office Geneva, p. 5, https://webapps.ilo.org/public/libdoc/ilo/1979/79B09_547.pdf (accessed 26 October 2024).

[3] Lu Peng, Alan H.S. Chan: A meta-analysis of the relationship between ageing and occupational safety and health, Safety Science, Volume 112, 2019, pp. 162-172, https://doi.org/10.1016/j.ssci.2018.10.030. See also: Kelly Harris, Sarah Krygsman, Jessica Waschenko, Debbie Laliberte Rudman, Ageism and the Older Worker: A Scoping Review, The Gerontologist, Volume 58, Issue 2, April 2018, Pages e1-e14, https://doi.org/10.1093/geront/gnw194 (accessed: 26 October 2024).

[4] Lu Peng, Alan H.S. Chan: A meta-analysis of the relationship between ageing and occupational safety and health, Safety Science, Volume 112, 2019, p. 163.

[5] World Health Organization, Ageing and Health, https://www.who.int/news-room/fact-sheets/detail/ageing-and-health (accessed: 25 August 2023).

[6] Pensions at Glance 2019: OECD and G20 Indicators, https://www.oecd-ilibrary.org/sites/b6d3dcfc-en/index.html?itemId=/content/publication/b6d3dcfc-en#section-d1e182 (accessed: 25 August 2023). See also: Green Paper on Ageing: Fostering solidarity and responsibility between generations, Brussels, 27.1.2021 COM(2021) 50 final, p. 2; The 2024 Revision of UN World Population Prospects, https://population.un.org/wpp/ (accessed: 26 October 2024).

[7] European Commission Directorate-General for Economic and Financial Affairs 2024 Ageing Report Economic and budgetary projections for the EU Member States (2022-2070), Institutional paper 279, p. 3.

[8] International Labour Organization, ILOSTAT data explorer, https://rshiny.ilo.org/dataexplorer21/lang=en&segment=indicator&id=EAP_2WAP_SEX_AGE_RT_A (accessed: 25 August 2023).

[9] European Commission Directorate-General for Economic and Financial Affairs 2024 Ageing Report Economic and budgetary projections for the EU Member States (2022-2070), Institutional paper 279, p. 4.

[10] See on this issue: Joanne Allen, Fiona M Alpass, Ágnes Szabó, Christine V Stephens, Impact of Flexible Work Arrangements on Key Challenges to Work Engagement Among Older Workers, Work, Aging and Retirement, Volume 7, Issue 4, October 2021, Pages 404-417, https://doi.org/10.1093/workar/waab010; Bal, P. M. (2015). "Chapter 20: Sustainable careers: enabling older workers to continue working through individualized work arrangements", in: Handbook of Research on Sustainable Careers. Cheltenham, UK: Edward Elgar Publishing. Retrieved Oct 26, 2024, https://doi.org/10.4337/9781782547037.00025 (accessed: 26 October 2024); Piszczek, M. M., & Pimputkar, A. S. (2021), Flexible schedules across working lives: Age-specific effects on well-being and work, Journal of Applied Psychology, 106(12), 1907-1920, https://doi.org/10.1037/apl0000844 (accessed: 26 October 2024).

[11] See: Brian Findsen, Marvin Formosa: Lifelong Learning in Later Life, Springer Science & Business Media, 2011, pp. 218; Brink, S. (2017), Learning in Later Years in the Lifelong Learning Trajectory, Journal of Intergenerational Relationships, 15(1), 14-25, https://doi.org/10.1080/15350770.2017.1260391 (accessed: 26 October 2024).

[12] As Koji Mori et al. highlights: work engagement increases with age and is mainly mediated by increased emotional regulation. Further, age moderates the associations of several job-related psychological and work-environmental factors with work engagement. Working beyond retirement age is related to work engagement. Organizations need to be aware of the features of work engagement of older workers and make them age-conscious in supporting their adaptation to changes in society. See: Koji Mori, Kiminori Odagami, Mizuho Inagaki, Kenta Moriya, Hidenori Fujiwara, Hisashi Eguchi, Work engagement among older workers: a systematic review, Journal of Occupational Health, Volume 66, Issue 1, pp. 1-22, January-December 2024, uiad008, https://doi.org/10.1093/joccuh/uiad008 (accessed: 26 October 2024).

[13] See more: Dietz M, Walwei U. (2011), Germany - no country for old workers? J Labour Mark Res 44(4): 363-376; Neumark D, Burn I, Button P. (2019), Is it harder for older workers to find jobs? New and improved evidence from a field experiment. J Polit Econ 127(2): 922-970, as: Daniel Oesch, Research in Social Stratification and Mobility, https://doi.org/10.1016/j.rssm.2019.1004https://people.unil.ch/danieloesch/files/2019/12/Oesch_2019_Discrimination_Hiring_OlderJobseekers.pdf (accessed: 26 October 2024); Dietz M, Walwei U. (2011), Germany - no country for old workers? J Labour Mark Res 44(4): 363-376, Adams SJ, Heywood JS (2007), The age of hiring and deferred compensation: evidence from Australia. Econ Rec 83(261): 174-190; Heywood JS, Ho L-S, Wei X (1999), The Determinants of Hiring Older Workers: Evidence from Hong-Kong. ILR Rev 52(3): 444-459.

[14] Jaap Oude Mulders, Kene Henkens, Employers’ Adjustment to Longer Working Lives, Innovation in Aging, Volume 3, Issue 1, January 2019, https://doi.org/10.1093/geroni/igy040 (accessed: 26 October 2024).