Ageing and Employment Policies: Finland by Organisation for Economic Co-Operation and Development

By Organisation for Economic Co-Operation and Development

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Extra resources for Ageing and Employment Policies: Finland

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Chapter 2 discusses the current labour market situation for older workers in terms of their employment and unemployment situation, but also in terms of absenteeism and people outside the regular labour market. Chapter 3 discusses the role of supply-side factors in influencing participation rates of older people and how incentives to work are affected by benefit levels and eligibility criteria in the welfare system. Chapter 4 examines those factors which negatively affect the attitudes of employers towards older workers.

E. the 4 proportion of all workers who are still in their jobs five years later, were calculated. 5). Typically, they are low for younger workers, since they change jobs relatively frequently while making the transition from school to work and then rise with age as workers become more settled in their careers. They subsequently decline at older ages as workers either reach the official retirement age or, where this possibility exists, take 4. These retention rates are estimated using cross-sectional data on job tenure rather than from directly observing job retention.

At the age of 61, only around 30% of the population is working – a drop of more than 50 percentage points compared with individuals 51 years old. This corresponds to a similar increase in inactivity rates. In fact, by the age of 53, inactivity rates amount to more than 16% and, between the ages of 57 and 60, the inactivity rate jumps from 31% to almost 59%. In turn, unemployment rates are highest for 50-year olds and thereafter vary between 5% and 8% up to the age of 60. After the age of 60, as will be shown in Chapter 3, unemployment falls since many individuals transfer to the unemployment pension.

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