Too old to work? When Europe’s much-lamented talent shortage meets ageism in the workplace – Equal Times

Report on Age-Based Discrimination in the Global Labour Market and its Implications for Sustainable Development Goals

1.0 Introduction: Ageism as a Barrier to Inclusive and Sustainable Growth

Age-based discrimination in the workplace, or ageism, represents a significant impediment to achieving the 2030 Agenda for Sustainable Development. This practice systematically renders experienced workers invisible, directly undermining Sustainable Development Goal 8 (Decent Work and Economic Growth) and SDG 10 (Reduced Inequalities). A global demographic paradox is evident: while populations are ageing and life expectancy is increasing, older workers are frequently excluded from the labour market. This exclusion not only affects individual livelihoods but also curtails national productivity and strains social security systems, hindering progress towards sustained and inclusive economic growth for all.

2.0 The Scope of Labour Market Exclusion and its Impact on SDGs

The exclusion of older workers is a multifaceted issue with severe consequences for several SDGs. The discrimination is often compounded by other factors, creating layers of disadvantage.

• Systematic Discrimination: The core issue is a violation of SDG 10.3, which calls for ensuring equal opportunity and eliminating discriminatory practices. Preconceived notions about the profitability, adaptability, and technological proficiency of older workers lead to their exclusion from recruitment and training opportunities.
• Intersectionality and SDG 5 (Gender Equality): The challenge is exacerbated for women and migrants. Data indicates that employment rates for women over 50 are consistently lower than for men, and they are more likely to be in precarious, part-time employment. This double discrimination based on age and gender is a direct barrier to achieving SDG 5.
• Illustrative Case Studies:
  1. Jorge Llorca (Spain): A 59-year-old waiter who faced unemployment at age 55, illustrating the “invisibility” of older workers despite their skills and experience. His re-employment in a supportive environment highlights the potential that is often wasted.
  2. Cecilia Huané (Peru/Spain): A qualified accountant who, at 51, faced systemic barriers in securing employment despite extensive experience, a reality that contravenes the principles of decent work under SDG 8.
  3. Lola Moreno (Argentina/Spain): A 54-year-old lawyer forced into precarious, unskilled work after migrating, demonstrating the de-skilling and loss of human capital that results from such discrimination.

3.0 Regional Analysis: Contrasting Policy Approaches and Outcomes

Global responses to workforce ageing vary significantly, offering insight into effective and ineffective strategies for promoting SDG 8.

3.1 The European Union

The EU faces a critical challenge. While the number of workers aged 55 and over rose to nearly 40 million in 2023, employment rates show vast disparities. This highlights an inconsistent approach to fostering inclusive labour markets.

• High Performers: Nordic countries, the Netherlands, and Estonia demonstrate high employment rates for the 55-64 age group, aligning with SDG 8 through active labour market policies.
• Low Performers: Countries such as Greece, Luxembourg, Romania, and Spain lag significantly, with employment rates below EU averages, indicating a failure to harness the potential of their older populations.

3.2 Asia-Pacific Region

• Japan: A leading example of a proactive approach. Japan combines legislative reform (ensuring employment opportunities until age 70), massive investment in retraining in line with SDG 4 (Quality Education), and a corporate culture that values experience.
• South Korea: Faces challenges with a rapidly ageing population, where older workers are often concentrated in lower-quality jobs and subject to discriminatory pre-retirement salary reductions.
• China: The “curse of 35” and mandatory early retirement policies create poverty traps, undermining SDG 1 (No Poverty) and SDG 8.

3.3 Other Regions

• Turkey: Exhibits alarming figures with one of the lowest retirement ages in the OECD and extremely low employment for older cohorts.
• Latin America: High informality rates (75.9% for workers 65+) force older individuals into subsistence work without social protection, creating conditions of extreme poverty and directly contravening SDG 1 and SDG 8.

4.0 Best Practices and Policy Recommendations for Achieving the SDGs

To combat ageism and advance the Sustainable Development Goals, a multidimensional strategy is required, drawing from successful models and targeted interventions.

4.1 Models for Inclusive Employment

1. The Nordic Model: Integrates flexible pension systems, extensive digital retraining programs (SDG 4), and robust anti-discrimination policies (SDG 10) to encourage longer, productive working lives.
2. Social Enterprise Initiatives: Organizations like Mescladís in Barcelona demonstrate the value of intergenerational workforces, providing training and employment to diverse groups with high success rates and fostering social cohesion.
3. Corporate Leadership: Businesses like Entrepanes Díaz, which exclusively hires waiters over 50, prove that valuing experience can be a successful and sustainable business model.

4.2 Key Policy Recommendations

• Strengthen Legal Frameworks: Implement and enforce specific legislation against age discrimination to ensure equal opportunity in hiring, promotion, and training, as mandated by SDG 10.
• Invest in Lifelong Learning: Develop and fund continuous training, upskilling, and reskilling programs to equip older workers for digital and green transitions, directly supporting SDG 4.
• Improve Working Conditions: Adapt workplaces to prevent premature burnout and accommodate the health needs of an ageing workforce, contributing to SDG 3 (Good Health and Well-being).
• Promote Intergenerational Mentoring: Create programs that leverage the expertise of older workers to train younger generations, enhancing productivity and knowledge transfer.

5.0 Conclusion: The Economic Imperative of Inclusion

The continued exclusion of older workers from the labour market is an unsustainable practice that carries a significant economic and social cost. It wastes valuable human capital, stifles economic growth, and exacerbates inequality. Addressing ageism is not merely a matter of social justice; it is a critical necessity for achieving the 2030 Agenda for Sustainable Development. Harnessing the talent, experience, and wisdom of older workers is essential for building resilient, inclusive, and prosperous societies for all.

Analysis of SDGs, Targets, and Indicators

1. Which SDGs are addressed or connected to the issues highlighted in the article?

1. SDG 8: Decent Work and Economic Growth
2. SDG 10: Reduced Inequalities
3. SDG 5: Gender Equality
4. SDG 4: Quality Education
5. SDG 1: No Poverty

2. What specific targets under those SDGs can be identified based on the article’s content?

1. SDG 8: Decent Work and Economic Growth

   • Target 8.5: By 2030, achieve full and productive employment and decent work for all women and men… and equal pay for work of equal value. The article’s central theme is the exclusion of older workers (men and women over 50) from the labour market, directly addressing the need for “full and productive employment” for all age groups. The story of Jorge Llorca, who was unemployed at 58, and the general issue of ageism preventing experienced individuals from finding work, are prime examples.
   • Target 8.8: Protect labour rights and promote safe and secure working environments for all workers, including migrant workers, in particular women migrants, and those in precarious employment. The article highlights the precarious situations of migrant workers like Cecilia Huané and Lola Moreno. It also discusses the high rate of informal, unprotected work among older people in Latin America, where the “informal employment rate among workers aged 65 and over is 75.9 per cent,” which directly relates to the need for protected and secure work environments.

2. SDG 10: Reduced Inequalities

   • Target 10.2: By 2030, empower and promote the social, economic and political inclusion of all, irrespective of age, sex, …origin… or other status. The article is fundamentally about the lack of economic inclusion for people based on their age. It explicitly states that ageism is a “systematic form of discrimination that makes workers with decades of experience invisible to the market.” It further details how this inequality is compounded by sex (women are “doubly disadvantaged”) and origin (the struggles of migrant workers Cecilia and Lola).
   • Target 10.3: Ensure equal opportunity and reduce inequalities of outcome, including by eliminating discriminatory laws, policies and practices… The article discusses the need to fight age discrimination. The Spanish trade union CCOO is quoted arguing for the need to “strengthen the fight against age discrimination through specific legislation,” which directly aligns with this target’s goal of eliminating discriminatory practices through policy and legal action.

3. SDG 5: Gender Equality

   • Target 5.1: End all forms of discrimination against all women and girls everywhere. The article specifies that age discrimination is “even worse if you are a woman.” It highlights that “Women over 50 are doubly disadvantaged,” with employment rates for women being lower than for men by “at least a 10-point difference in most countries.” This points directly to gender-based discrimination in the economic sphere.

4. SDG 4: Quality Education

   • Target 4.4: By 2030, substantially increase the number of youth and adults who have relevant skills, including technical and vocational skills, for employment, decent jobs and entrepreneurship. The article identifies a lack of “continuous training or upskilling” as a factor disadvantaging older workers. Conversely, it praises Japan’s massive “¥1 trillion (approximately €5.8 billion) retraining plan to update skills across the entire workforce, regardless of age” as a positive policy measure, directly addressing the need for adults to acquire relevant skills for continued employment.

5. SDG 1: No Poverty

   • Target 1.3: Implement nationally appropriate social protection systems and measures for all… and by 2030 achieve substantial coverage of the poor and the vulnerable. The article links the lack of employment and social protection for older workers to poverty. It mentions that in China, early retirement with “meagre pensions is creating a poverty trap,” and in Latin America, “Older workers without formal social protection face extreme poverty, without access to decent pensions.” This highlights the failure of social protection systems, a key focus of this target.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

1. For SDG 8 & 10 (Employment and Inequality)

   • Employment rate of the 55-64 age group: The article provides specific figures for various countries, such as Iceland (83.7%), Greece (48%), and Spain (61.1%), which can be used to measure and compare the economic inclusion of older workers.
   • Employment rate of workers aged 65 and over: The article cites Japan’s rate of 25.2%, providing a metric for post-retirement employment.
   • Informal employment rate among older workers: The statistic that “The informal employment rate among workers aged 65 and over is 75.9 per cent” in Latin America is a direct indicator of precarious work and lack of social protection.

2. For SDG 5 (Gender Equality)

   • Gender gap in employment rates for older workers: The article implies this indicator by stating that for women over 50, “Employment rates are lower than for men (with at least a 10-point difference in most countries).” This gap is a clear measure of gender inequality in the labour market.
   • Proportion of women in part-time work: The observation that “women are more likely to work part-time” is an indicator of the quality and nature of employment available to older women compared to men.

3. For SDG 4 (Quality Education)

   • Public/private investment in retraining programs: The article mentions Japan’s “¥1 trillion” retraining plan, which serves as a financial indicator of a country’s commitment to upskilling its workforce, including older adults.
   • Employability rate after training: The success of the Mescladís initiative is measured by its “employability rate exceeding 90 per cent,” an outcome indicator for the effectiveness of training programs for vulnerable groups.

4. SDGs, Targets and Indicators Table

Source: equaltimes.org