Older workers

Abstract

Malta has one of the more rapidly ageing populations in the European Union (EU). The diminishing ratio of workers to the total population is putting increasing pressure on the long-term sustainability of the country's social welfare system. Malta's employment rate among the 55-64 age cohort is lower than the EU average, with older women being considerably less likely to be in employment than men. The lower labour market participation of older Maltese persons derives from an intricate set of factors ranging from personal issues to the more macro dimensions of culture, legislation and the economy. However, older Maltese workers do tend to experience better working conditions and health outcomes when compared to their counterparts in other EU countries. In line with EU policy on active ageing, the Maltese Government has promoted a number of policies meant to facilitate the continued participation of older persons in employment. These include the gradual raising of the legal retirement age, changes in tax/benefit systems, improvements in opportunities for lifelong learning, and the fostering of employment services for older and ageing persons. While the opportunity to grow older indicates a social success, it creates challenges at both the personal and political economy levels. At the individual level, a longer life needs to be accompanied by an adequate quality of life, which is normally tied to health and autonomy, satisfactory financial standing, social connectedness and the ability to continue using one's talents to contribute to society. At a structural level, the Government is faced with pressures to step-up the inclusion of older persons in society, providing care for their deteriorating health and improving the sustainability of the pensions' system which inevitably comes under greater pressures with the ageing of society. The Government also needs to manage negative repercussions of ageing workers on economic growth due to the shrinking workforce and skill shortages. These challenges have been acknowledged by the EU so that active ageing in employment constitutes a key aspect of Europe 2020 (European Commission, 2010) - the EU's growth strategy. Moreover, the issue 'longer working lives' constituted one of the pillars of the European Year for Active Ageing and Solidarity between Generations 2012 (Eurofound, 2012a). Good practices for dealing with active ageing and the facilitation of older persons in employment are various. Different countries need to adopt different approaches, depending on their particular social, political, economic circumstances. This chapter explores the employment trends and working conditions of ageing and older workers in Malta in comparison to their EU counterparts. Major policy developments targeting the increase of older and ageing workers in the labour force are discussed, including pension reform, the introduction of age-friendly tax/ benefit systems, continuing vocational education and professional development, and employment services for older workers in Malta. [Excerpt]