Age dilemma in the labor market: Raise the retirement age when people over 50 can hardly find work?

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Everyone who is 35 years old today still has 30 years of work ahead of them before retiring. Unless the retirement age increases. This is the demand of the retirement initiative that we will vote on March 3. Or unless you become unemployed at age 58 and can’t find a job until you retire.

The age guillotine in the labor market is not just a reality. It is now shifting downwards again: the labor market is returning to normal after years of staff shortages in almost all sectors of the economy. For older workers, normality means they have worse luck when looking for work.

Companies only see costs

Heidi Joos, 69, can no longer hear complaints about the shortage of skilled workers. As the general director of the avenir 50 Plus association, she defends the interests of the elderly, the unemployed, those who have lost their jobs and those receiving social assistance. “Employers are panicking about supplies,” Joos accuses them. “They prefer to fill the gap in the labor market with cheap foreign workers instead of using the domestic potential.”

Problem: Older workers are, on average, more expensive for companies. Pension fund contributions are significantly higher than for younger workers. Additionally, older people often earn higher salaries due to their work experience. Employers also recognize that age-related discrimination can occur. “Many companies also make business decisions,” says Stefan Heini, spokesman for the employers’ association.

Youth unemployment is higher than elderly unemployment

Despite the problems in finding a job in old age, the fact that there is talk of increasing the retirement age upsets those affected. If they cannot find a job at 58, who will employ them until they are 66?

Melanie Racine, 25, who wrote the proposal, deputy chair of the pensions initiative committee and a member of the Young Liberals, argues that increasing the retirement age would benefit older people in the labor market. “It is not attractive for employers to hire someone older who will leave the job at 65,” says the young politician. There is a logic that if the retirement age is increased, you will not retire at 58.

Although Racine emphasizes that he is aware of discrimination against older workers, he says: “In international comparison, unemployment among people over 55 is low in Switzerland.” In fact, according to official statistics, the unemployment rate for people aged 50-64 in Switzerland is 2.1 percent. This rate corresponds to 2.2 percent youth unemployment. Only: Quota hides all those who have already been eliminated. Or those who want to work more but cannot find a full-time job.

Demographic change favors the elderly

The good news: Even as the economy cools, the structural part of the skills gap remains. This is due to aging, not economics. This gap will widen further in the coming years. “At some point, employers will no longer be able to manage without older workers,” predicts Heini of the employers’ association.

Further discussions are planned. Following the retirement age vote in March, the next proposal on pension provision is already on the agenda. This year, a BVG reform is expected to be voted on, which will, among other things, equalize the unequal pension fund contributions of young and old.

Source :Blick