Spain loses out by ignoring invisible talent

January 14, 2019

Spain has an obligation to take a close look at the problem of the low employability of people over 45 for many reasons. Longevity is an asset that should not be wasted and, however, it has become a problem for more than 1.4 million people in our country who are unemployed. Of these, 70% are long-term unemployed, which means that their capital, expressed in the form of talent and experience, tends to fade over time and become invisible in the labour market. A sense of frustration and unease that is also felt by those who, even though they still have a job opportunity, fear that they will soon join the unemployment list and, out of fear of being dismissed, try to go unnoticed in their companies. A problem that stems from the permissiveness established in Spain regarding early retirement and, above all, from the reality that technology is making inroads into companies at the expense of many jobs.

Spain cannot afford to forgo this group of people, whose high social and professional commitment must continue to add value to our country’s workforce. Not least because the share of workers over 45 in our economy will increase considerably over the next ten years due to the unstoppable ageing of the population.

From a social standpoint, unemployed people over 45 face several serious problems. The first is the labour discrimination suffered by adults seeking employment, comparable to that faced by women when they try to enter the labour market. Second, more than 35% of this group still has family and financial responsibilities which, when they cannot be adequately met, translate into a feeling of powerlessness and discouragement, with very negative repercussions for the unemployed person and their family environment.

The solutions are not easy. Workers themselves must change the way they think and understand today’s environment in order to accept that a job is no longer for life. As people tend to live longer and longer, it will be necessary to address this by investing in health and wellbeing, in family and relationships, and by strengthening skills through training courses and new experiences. The classic pattern of education, employment and retirement no longer works, in the same way that pay must be aligned with value added rather than seniority, which requires a change in mindset among individuals, companies and the Public Administration itself.

For their part, companies must make an effort so that their workers over 50 can envisage at least a ten-year working horizon. This challenge requires changing the design of training and development and, above all, putting an end to age-based labour discrimination in hiring or dismissal practices.

The Administration, for its part, must address the problem of employability among older people from a comprehensive perspective and avoid designing age-specific policies. To begin with, it should set out an agenda that defines the worker’s right to remain employed at least until the legal retirement age. The Administration could, for example, pilot some approaches proven in other countries, such as the one-stop shop introduced in Germany and the United Kingdom, which brings together all job supply and demand on a single platform in a centralised manner, regardless of where it originated; or it could train experienced instructors with the aim of personalising and even effectively tailoring the guidance, training and job placement of unemployed people over 45.

In any case, effective progress will only be possible if all the stakeholders involved—public institutions, universities, companies, civil society organisations and the workers themselves—join forces and work in the same direction. That said, the responsibility of the Public Administration as the facilitator of the rules that should define the actions of the other groups involved is fundamental.

In short, it is essential to gradually change a labour market governed by rigid, outdated rules that protect those who hold a job, but hinder access for other groups. And not only young people. Also older workers, who must stop being invisible actors and once again contribute to society with the experience, commitment and adaptability they have developed throughout their lives.

Juan Carlos Delrieu, Director of Strategic Planning at AEB

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This content has been automatically translated and may contain inaccuracies.