Increasing Employment of Older Workers through Lifelong Learning Statements and comments. 1. The situation in Greece GREECE

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1 Increasing Employment of Older Workers through Lifelong Learning Statements and comments Maria Ketsetzopoulou National Centre for Social Research (EKKE) 1. The situation in Greece 1.1 Labour market performance and education attainment Greece is projected to face unfavourable demographic trends, similar to most other EU member states. The old-age dependency rate (population aged 65 and over as a percentage of the working-age population, 15-64) is expected to increase from a moderate 26% in 2005 to 60% in 2050, among the highest in the EU. The total labour force (employed and unemployed) amounted to million people in 2006 (European Commission, 2007), which was 67% of the working age population (15-64). The total employment rate (61%) remains 9 percentage points below the target for 2010, despite the positive employment growth achieved the last years. The total unemployment rate (8.9%) appears higher than the EU average. Although the total employment has been improving significantly over time, the employment rate of persons aged increased slowly (by 0.4%) during the period ; it was 42.3% in 2006 (compared to 43.5% in EU-27). The unemployment of this age group appears to be negligible (3.7% in 2006), compared to the total unemployment rate in Greece, although the existing evidence shows ageing people in the Greek labour market to be at a distinct disadvantage. Fewer employment opportunities and difficulties in reintegrating into the labour market are the main problems of the ageing people in Greece. Despite the significant increase in education attainment levels in Greece, the education level of people aged (especially of older women) continues to remain lower compared to the total population; only about 23% of the people aged have completed upper secondary education, while 66.8% have not completed any formal education after compulsory education. Thus, the proportion of the youngest generation having completed at least upper secondary education (81.3% of the population aged 20-24) is more than twice that of the oldest generation. Any ongoing rise in education levels is likely to contribute towards reaching high employment rate; the participation in the labour market is strongly correlated with education attainment levels, as shows the European experience (Eurostat, 2006). In Greece, however, there is no clear correlation between the participation of people aged and the levels of education. It is observed that the employment rate of people aged with low education level (less than upper secondary) is higher than the employment rate of those with medium (upper secondary) education level (40.6% against 32.6%). These results can be mainly explained by the structure of economic activities in Greece, as well as by the sectoral and occupational structure of employment and the position of ageing people within it. The proportion of self-employed is higher in the age group than in the age group 30-49; however, it is the highest between EU countries (51.8% against 23% in the EU-25). The structure of economic activity in Greece is characterised by a relatively large share of agricultural sector 1

2 and a significant part of the employed older people (especially women) works in this sector either as self-employed (27%, ESYE, 2006), or as assisting and unpaid family members (7.4%). Also, a sizeable part of older people works in small enterprises of traditional and declining sectors. These figures characterised the Greek labour market have a significant impact on any effort for promoting education and learning measures making difficult the design of uniform learning policy. In Greece, lifelong learning activities are not very well developed; there is no tradition in vocational education and training and especially non-formal VET schemes remain very weak, although some significant positive measures have been taken to improve this situation during the last years. According to the evidence, only 1.9% of the adult population aged participated in lifelong learning activities (Eurostat, 2007), compared to 9.6% in EU-27 and to about 40% in Iceland. Furthermore, in non-formal adult education participate exclusively young and usually, well educated people (3.9% of people aged with high educational attainment, 2.6% of those with medium and 0.3% of those of low). Regarding the age groups, 5.1% of people aged participated in 2006, compared to 1.4% of those aged 35-44, to 0.4% of those aged and to 0.2% of aged group In contrast with Iceland, the data show that people who are inactive in the labour market tend to participate more in learning activities (3.1% of inactive people, 2.2% of unemployed and 1.4% of employed). These figures may show that the participation rates reflect some priorities of government policy and initiatives, which are focused more on combating unemployment and promoting participation than on updating the skills of employed. 1.2 The institutional/ legal framework of adult education In Greece, the central government has the responsibility for policy design and delivery in the field of education and training. Measures are largely planned centrally and implemented by local branches of ministries and other public (or quasi-public) agencies. Law 3369/2005 Systematisation of Lifelong Learning seeks to define the main forms and the concept of Continuing Vocational Education and Training (CVET) and adult education in Greece. Lifelong training consists of Initial Vocational Training and Continuing Vocational Training aiming at helping people obtain or improve knowledge and skills for occupational integration and reintegration, career and personal development. The most important aim of lifelong education however, is to constitute a dynamic policy factor for social integration. The responsibility for the initial training and the further formal adult learning has the Ministry of National Education and Religious Affairs (YPEPTH). The initial training at post secondary level for adults operates under the Organisation for Vocational Education and Training (OEEK) a Legal Entity of Public Low. Providers of initial training are the Vocational Training Institutes (IEKs). There are 116 public IEKs and 50 private IEKs (Cedefop, 2006). The further formal adult learning operates under the General Secretariat of Adult Education (GGEE), which is public body. The further adult learning aims to supplement the basic education and lifelong learning for the manpower and for people at social risk. There is a number of structures, such as Second Chance School (for adults who have not completed compulsory education), Adult education Centres, Parent schools, and the Centre for Distance Lifelong Learning Education and Training for Adults. GGEE is directly responsible for running a Vocational Training Centre (KEK) and 54 Prefectural Committees of Adult Education (NELE) for trainees at 2

3 any level of education. The main provider of lifelong education at tertiary level is the Hellenic Open University. Continuing Vocational Education Training, as a non-formal education, has grown rapidly in recent years driven not only policy reforms but investment coming from national and EU resources. Training is part of the Operational Programme Employment and Vocational Training of the Ministry of Employment and Social Protection (YPAKP). Also, other OPs of the 3 rd Community Support Framework implements CVET, such as the OP for Education and Initial Vocational Training (EPEAEK II), the OPs Information Society, Health &Welfare, Competitiveness, as well as 13 Regional OPs. Continuing Vocational Training is primary responsibility of the Ministry of Employment and Social Protection (YPAKP) and its executive body: the National Accreditation Centre for Continuing Vocational Training (EKEPIS). The mission of EKEPIS is to accredit the Vocational Training Centres (KEKs). KEKs are privately-oriented (non-profit or profit making) or state-run training institutions and their role is to design, organise and provide courses in continuing vocational training for employees, unemployed and other socially disadvantaged groups at all levels of education. 261 private and public KEKs have been accredited by EKEPIS together with 541 structures (separate buildings). Moreover, EKEPIS has also accredited 22 KEK AmeA, and 4 Specialised Centres for Social and Vocational Integration of Former Drug Users. The main provider of CVET for all is the Manpower Employment Organisation (OAED) under the supervision of the Ministry of Employment and Social Protection. There is also CVET, which is implemented by other ministries and public bodies. In addition, KEKs run by social partners also provide CVET activities since many of their training programmes are subsidised by OAED. Particular mention can be made on the Labour Institute of the General Confederation of Greek Workers (INE/GSEE), which has prepared a series of studies on LLL and vocational training, it also implement a large number of continuing vocational training programmes. All these activities are co-financed by the European Social Fund and the state budget. Especially for enterprises, the Account for Employment and Vocational Training (LAEK) was established as a major mechanism promoting CVET at enterprise level. The financial resources of LAEK come from the joint contributions of both employees and employers, which amount to 0.45% of the total salary of each employee. Additionally, major semi-state enterprises and private big enterprises (banks, companies with more that 100 employees), as well as chambers of commerce, professional organisations and federations of employees, have training departments/ units which provide employees with knowledge and skills required for their specific jobs. 2. Transferability of Icelandic policy to Greece The present Peer Review came at a very suitable time for Greece. The issue of reforming the social insurance system due to the viability of the pension system has again been raised by the Greek government. The labour market situation in Greece is quite different from that in Iceland. Icelandic labour market is characterised by long working life, low unemployment rate, high portion of the older cohorts in the labour force and high participation in non-formal adult education. In contrast, the Greek labour market is characterised by lower employment rate in comparison to Iceland, higher unemployment rate and quite lower participation in non-formal education. 3

4 Additionally, despite the great number of training institutions in Greece, both public and private and despite the positive steps made for improving their operation, the effectiveness of their function appears very limited yet, in contrast of the situation in Iceland. Although the differences in the employment patterns between Greece and Iceland, we can detect some certain similarities in the general trends. Both labour markets are facing a fairly high percentage of ageing people, especially women, who have not completed any formal degree above compulsory education and the participation of these people in non-formal education tends to be relatively low. Having in mind the basic similarities and differences between the labour market situation in the two countries, the actions promoting the participation in learning activities in Iceland, adapted to Greek conditions, could be very useful in a number of ways, given that the current labour policies in Greece place special emphasis on both in developing lifelong learning activities and maintaining an active participation of older people. In this direction, some important aspects of the Icelandic experience demonstrate high potential transferability, especially for countries like Greece, where the penetration of non-formal education and training in working life of older people is completely missing. The Icelandic experience shows that the theme of older workers and lifelong learning is complex and this has to do mainly with a new attitude about the relationship among age, working and learning, which is completely different from the traditional one, demanded by older workers themselves, employers, social partners, straining providers, policy-makers and society as a whole. The basic messages arising from the Icelandic experience and the main comments on the potential transferability elements could be summarised as follows: Changing attitudes about the older people is viewed in working. The labour market performance in Iceland, may suggest that there are positive attitudes, appropriate conditions and well-functioning labour market ( receptive labour market, according to the Icelandic Peer Review paper) which is important for underpinning high participation rates among older people. In Greece, despite the development of some (fragmented) measures in the recent years, aiming at improving the situation of older workers in the labour market, generally speaking, there is a lack of effective legislative or other incentives from the government, which would facilitate older people to access the labour market and safeguard in practice their right for employment. Direct age discrimination does not show in great numbers in terms of statistics, however, there is some evidence that employers have negative attitudes towards hiring and employing ageing people. In general, there is a certain lack of awareness among enterprises, older people and society as whole, on the issues of the relationship between ageing and working performance. Promoting training culture in a life course context. The participation rate in non-formal adult education in Iceland is quite high between all age groups and this contributes effectively to the active and effective participation of the older age group in both workforce and learning activities. The Icelandic experience reveals that the environment supporting training culture and seeking to raise the overall participation in skill training (lifelong learning) can have an important long-term effect on older workers. This aspect is of a great importance for Greece, a country which does not demonstrate deep tradition in continuing education and training. Encouraging and facilitating the establishment of broad partnership for promoting adult education and ensuring the close cooperation between local authorities, enterprises, social partners and educational units at national and local level. The main message from the Icelandic experience is focused on the development of effective real partnership and close co- 4

5 operation between all interested agents, which ensure successful implementation of adult learning activities. In Greece, there is little tradition of cooperation among public, semi-public and private actors at national and regional level. Collective bargaining between social partners remains mainly to pay-related issues. Despite some non-pay additions to the agenda in recent years, no significant collective bargaining developments occurred with regard to vocational education and training. Developing infrastructures and mechanisms for stimulating and facilitating participation in learning activities, especially, of ageing persons with low formal education. In Iceland, the system of non-formal education in general is quite flexible and increasingly proactive, having the task of stimulating people and providing frameworks necessary to enable they participation in educational activities. This parameter is of great importance in case of Greece, where a large part of older people is self-employed or works in small enterprises without training capacities. On the other hand, beside the great number of training institutions and mechanisms developed for the anticipation of skill needs in formal education, there is a lack of effective infrastructures aiming to capture the real needs for non-formal education, to stimulate and facilitate the access of ageing people in training activities. 3. Important issues relevant to older workers and lifelong learning in Greece Managing human resources in a period of demographic decline and improving lifelong learning actions, especially for ageing people are of the main challenges that Greece faces today. It must be pointed out that any implementation of age managing policies has to take into account the specific figures and characteristics of the existing situation in Greece. The total unemployment rate is still high, particularly for young people and women; thus, the labour market policies and especially, education and training activities were traditionally focused on these groups and only recently some fragmented measures are designed for the older people. The issue of ageing has entered in the debate in Greece primary as a treat to the viability of the pension system and on the whole, there is a lack of incentive for employers to hire or retain older people in employment and for older workers to remain in the labour force. By contrast, a wave of exits from the labour market through early retirement schemes, mainly in the public and broader public sector was anticipated the last years due to the workers concerns over the imminent reform of the social insurance system. Greece has demonstrated the most substantial rises in employment across EU Member States since 1995 and especially, in female participation. Despite this development, the participation of the age group has increased slowly and the gender gaps in activity rate remain substantial in Greece (the employment rate of men aged was 58.8% in 2006 compared to 25.8% for women). It must be pointed out that although the improvement in the employment rate of people aged since 2000 has been a general feature across EU Member States, Greece is one of those three countries which have not witnessed any substantial rise in the employment rate of people in this age group (Employment in Europe, 2005). On the other hand, the role of the Vocational Education and Training system appears to be limited and the participation, especially of the ageing people is very low. The spending of human resources (public expenditure on education as a percentage of GDP) is lower in Greece (4.2%) compared to EU-25 average (5.1%, European Commission, 2007). Public expenditure for Active 5

6 Labour Market Policy is between the lowest across the EU-27 (0.06% for active expenditure against 0.52% in EU-27). The investment by enterprises in the training of adults (direct cost and labour cost of participants divided by total labour cost) is also between the lowest across the EU (0.9 comparing to 2.3 for EU-27). It must be pointed out that 62.4% of the total employed work in small enterprises (with fewer that 10 people), where implementation of learning initiatives is rare. In the National Reform Programme ( ) specific emphasis is given on Active Labour Market Policies, especially on Continuous Vocational Training. According to the National Reform Programme, for the next programming period the participation of workers and self-employed in training is foreseen to increase from 0.9% in 2007 to 7% in Also, the government has committed to increase the spending for both formal education and active labour market policies. In this perspective, a number of significant measures are designed in both National Reform Programme and Operational Programme Human Resources Development , aiming at improving the existing system for Continuous Vocational Training. Particularly, the development and operation of Internet Portal to match labour supply and demand is foreseen; development and implementation of an Integrated System for the definition of Labour Market Needs (Subsystem I ESSEEKA) is also foreseen; the Guaranteed Employment Programme Contracts between OAED and professional associations and companies are promoted by OAED, aiming at linking directly Vocational Education and Training with the labour market needs. Additionally, in order to improve the attractiveness of CVET and to increase the participation rate, the creation of a specialised body has been decided. Moreover, the Ministry of Employment and Social Affairs, through a programming agreement will provide up to 2% of the O.P. Operational Programme Human Resources Development funds to the social partners, with the scope to improve their capabilities and to promote their active participation in planning and implementation of employment and social cohesion policies. For older workers, special interventions have been included in the in the context of both National Reform Programme and Operational Programme Human Resources Development , aiming at supporting the reintegration of ageing people into the labour market and improving employment of older people in general. Also, in 2007 the Special Social Solidarity Fund (E.T.K.A.) was established (Law 3552/2007). This Fund is addressed to long-term unemployed as well as those made redundant due to the restructuring process of business employing them. The beneficiaries should be over 50 years old. The measures financed by the new fund include, among others, welfare payments for unemployed participating in training and re-training activities and subsidies for vocational mobility. In this framework, the main challenge is how this great number of institutions and infrastructures could co-ordinate their actions and to which extent the development of effective real partnerships will be achieved, ensuring efficient management of learning policies designed on both strategic and operation levels. The suggestion arising from the Icelandic experience, in particular the high pattern of attendance in non-formal education which contributes effectively to the active participation of the older age group in the workforce, is of significant importance for Greece. Furthermore, the Icelandic experience shows that the operation of a flexible and increasingly proactive system through the close co-operation between all interested agents is an important factor for developing the competences of older people and improving their working conditions and employment perspectives. 6

7 References Cedefop, 2006, Greece: Overview of the Vocational Education and Training System. Website: European Commission, Employment and Social Affairs, 2004, Employment in Europe 2004, Luxembourg, Office for Official Publications of the European Communities. European Commission, Employment and Social Affairs, 2005, Employment in Europe 2005, Luxembourg, Office for Official Publications of the European Communities. European Commission, DG Employment, Social Affairs and Equal Opportunities, 2007 compendium, Indicators for monitoring the Employment Guidelines including indicators for additional employment analysis. Website: European Communities, Eurostat: Statistics in focus, Aliaga C & Romans F., 2006, the employment of seniors in the EU. Karantinos D., Thematic Report on Older Workers in Greece, European Employment Observatory Review: European Commission, Karantinos D., The National Programme of Ageing Workers in Finland (follow-up), Peer Review Programme, European Commission, January 20-21, Online: Ministry of Economy and Finance, 2007, National Reform Programme. Implementation Report, Athens. OECD, Live Longer, Work Longer, OECD - Ageing and Employment Policies,