TUAC welcomes today’s OECD Employment Outlook and its recognition that job quality is essential for retaining older workers in the labour market.
TUAC’s response notes the report’s findings of strong labour markets with record high employment levels and low unemployment across OECD countries. However, trade unions point to warning signs highlighted in the report, including weaker employment growth and fewer new job openings. TUAC also directs attention to the OECD’s finding that real wages in half of OECD countries remain below pre-pandemic levels, despite progressively regaining ground. Trade unions further express concern about the report’s warning that geopolitical uncertainty and tariffs could jeopardise this recovery, potentially halting the wage recovery for many workers.
The Employment Outlook projects that the share of the 65+ population to the working age population will increase from 31% in 2023 to 52% by 2060, due to increasing life expectancy and declining fertility rates in most OECD countries. It is clear that this will create substantial pressures on labour markets and the financing of social protection systems. TUAC acknowledges the gravity of these demographic challenges, but calls for solutions that protect vulnerable workers rather than placing disproportionate burdens on them.
Trade unions highlight that average longevity figures mask critical inequalities between income groups, with workers at the bottom of income distributions having experienced slow or even declining life expectancy in many countries. Low-income workers, predominantly in physically demanding occupations, also face significant health barriers to extended working lives.
“Instead of forcing people to work longer by raising statutory retirement ages, governments and employers should focus on improving work quality and workplace safety, ensuring fair wages, enhancing lifelong learning opportunities, and tackling age discrimination in the workplace.”
TUAC also draws attention to the Employment Outlook’s finding that when workers voluntarily move from one job to another, this benefits both workers’ wages and labour productivity. However, TUAC cautions governments against weakening employment protections in an attempt to boost older workers’ mobility:
“Reducing worker protections in the name of ‘flexibility’ would only increase precariousness and harm older workers in particular. The real solution is creating positive incentives and meaningful career opportunities for workers of all ages, including in their later years. This would prevent employment gaps and protect against the risk of workers falling into less productive and lower-paid positions in their senior years.”
TUAC also calls for fairer pension financing, including through more progressive taxation on wealth and capital, stronger action against tax evasion, reducing unemployment, and eliminating informal and precarious work. Trade unions insist that investing in job quality and working conditions would reduce sick leave, workplace accidents, and health-related early retirement – ultimately strengthening public finances.
Read TUAC full analysis of the OECD Employment Outlook here.
Image credit: OECD
