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Don’t forget us wrinklies in the jobs market
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The number of people out of work in Jersey may be far less than in many other communities where unemployment has reached 20, 30 or even 40% percent. However the problem is undoubtedly serious, not just for those directly affected, but because it represents a waste of resources for a small island with very few other economic assets.
Jersey may also be able to afford safety nets and work creation schemes that help ease the problem, but we can’t just keep on spending on these at this difficult time. Spending to create real jobs which produce real wealth and opportunity, is money well spent. Creating ‘fictional’ jobs to keep unemployment figures down is not such a bright idea.
It’s also obvious that there are long-term challenges facing the Island, the biggest of which is probably matching the skills available in Jersey with the demands of a growing and changing economy. However that doesn’t mean to say we can ignore the short-term crises represented by the quarterly unemployment statistics. We’ve got to tackle the immediate problem as well as the long-term problem, and let’s hope that any success in solving the immediate unemployment emergency, doesn’t divert attention away from the more deep-seated difficulties.
One of those difficulties is very close to my heart for pretty obvious reasons. It’s what is going to happen to all those retirees who don’t want to or cannot afford to retire when they officially become old age pensioners?
You can say, with some justification, that those OAPs who stay on in work could be taking jobs away from those who are just about to start work or are in mid career.
On the other hand, it’s an obvious waste of resources and talent to deprive older workers of jobs if they are willing and able to carry on working. They can also be extremely valuable to an employer because of the experience they bring, and because of their commitment and their flexibility. So they won’t need much training before they become productive (although training and re-training should be available to any age group that wants to remain economically active).
Despite the current unemployment problem, it’s also crucial that Jersey expands its pool of talent and productive labour force. It’s the amount of human capital available that will make a difference to the economy, and it doesn’t really matter what age it is.
So the only argument against accommodating older workers is the fear that they are limiting the number of jobs available for younger age groups. Therefore the answer must be that the Island needs to look after both.
There are encouraging signs that many more local employers understand this and are being much more flexible in their employment practices. Many have realised that it makes good economic sense to use whatever talent is available no matter what age that talent is.
However, many Island businesses have a long way to go before they wake up to the fact that the world of work has changed considerably since everyone was expected to hand in their office keys at 60 or 65 and head for the golf course. Not everyone wants to – or can afford to – spend all their retirement years hitting little white balls around.
Many still want to make a useful contribution to society, and while there are obviously plenty of opportunities in the charity sector, it can be more satisfying to some to make a direct contribution to a growing economy.
Yet we still hear of many highly qualified people who have been forced to retire at the statutory age, even though they might have ten or 20 more productive years ahead of them, particularly if they are able to shift to part-time or contract working.
Enforced retirement therefore represents an enormous waste of resources particularly in industries that depend on high skill levels acquired over a lengthy period such as finance.
The statistics show how rapidly the world of work is changing for older age groups in Jersey. To begin with there are an increasing number of them, many of them perfectly capable of carrying out non-manual labour. Average life expectancy in Jersey was estimated at 81.38 years in 2011, and that’s the 11th highest in the world, according to that fount of all human knowledge, the CIA World Factbook.
There is also a greater need for many more elderly workers to carry on earning, regardless of whether they would actually like to retire or not. A Social Security pension is obviously inadequate for most people to be able to maintain a decent standard of living in retirement, and most employers are cutting back on the pension benefits they can afford to offer.
There are personal pensions available, and these have become more attractive in recent years, although they can also be expensive and are clearly unsuitable for many retirees. The choice in Jersey is therefore much more restricted than in the UK, for example, and the government appears to be content to let individuals sort out their own retirement planning while trying to help by keeping taxes low.
However a recent study by HSBC found that the UK was way behind in a survey of retirement provision in 15 countries, and it would be a surprise if the position in Jersey was better than it is in the UK.
The HSBC survey said that the average Briton only has a pension pot big enough to last for the first seven years of retirement, and can expect another 12 years when the pot is empty.
However the survey also found that nearly 60% of respondents would prefer to save for a holiday than for retirement, yet most of them still wanted to retire at 65.
Hopefully the picture is better in Jersey, although as no one is even apparently bothering to ask the same questions, it’s likely that the picture is worse.
Therefore both the need and the desire to work after normal retirement age could be greater in Jersey, where economic growth will also depend largely on expanding the productive workforce.
There’s another solution, of course. Allowing in more immigrants would improve the demographics and expand the workforce. However, while there will always be a need to import some skills from outside the Island, the cost to society and the environment of allowing in too many people will undoubtedly be greater than the benefits.
Therefore it’s critical that we make the best of the resources we have, particularly the most precious resource of all. That means flexible working for older age groups as well as tackling the current unemployment problem.
Don’t forget us wrinklies in the jobs market
Peter Body
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