Poland: Older Workers Offer Solution to Demographic Challenge, but Must Overcome Prejudices Against Them

Following on the Polish government's proposals to help make people over the age of 50 more active in the workforce, the Warsaw Business Journal has published an article looking at the demographic challenge facing the Polish labor market. While noting that older workers could be what employers are looking for--offering experience, loyalty and flexibility, the article also suggests that "first the significant obstacle of prejudice must be overcome."

Only 41.5% of people aged 50 to 64 were professionally active in 2006, making Poland's employment rate for this group one of the lowest in the European Union, only beating out Malta. According to an Ipsos Poland survey done for Academy for the Development of Philanthropy (ARFwP), high unemployment in the 1990's and the beginning of the 2000's decade forced a large number of older people to exit the workforce in order to accommodate the younger generation, a trend that was further increased by high labor costs.

According to the Warsaw Business Journal article, labor market experts believe "the government's program is not enough to retain seniors in the workforce or lure them back." Instead, Poland needs a wide range of coordinated initiatives, such as the development of NGOs that would specialize in issues facing older people, such as the AARP in the United States.

On another front, employers also need to show more good will and flexibility in the employment of seniors. However, mere sympathy and pity are not arguments which appeal to entrepreneurs, according to Joanna Tokarz, project coordinator at ARFwP. She is quoted as saying: "The employer has to think in terms of the market, and they should be shown the benefits of employing over-50s in the first place." To enable this ARFwP has launched a project called Zysk z dojrzałości ("Profit from Maturity") in cooperation with Britain's Beth Johnson Foundation, to promote "age friendly" strategies and age-management solutions among employers.

Source: Warsaw Business Journal "Veteran workforce" (March 3, 2008)

Poland: Government Seeks Incentives To Keep Older Workers Working

According to press reports, the Polish government has proposed incentives aimed at motivating 50+ year-olds to become more professionally active. These would include promoting professional retraining programs to match job market demand and tax relief for employers offering work to people over 50.

Currently, only 28$ of people over 50, while the other 72% are retired, claim disability or early retirement benefits.

"Deputy labour and social policy minister Czeslawa Ostrowska has said that businesses employing people over 50 would be exempted from obligatory contributions to the Labour Fund and would only have to pay for the first 14 days of medical leave compared with the obligatory 33 days under the current law."

Source: Nowe Media, Polskie Radio S.A "Government encourages older workers to work longer" (February 22, 2008)

Other Sources: Pravda "Poland's new premier: firms must employ older workers, too" (November 29, 2007)