Older Workers: Are we meeting their OH&S and Workers' Compensation needs?

The number of “older” workers is rising at an unprecedented rate.  Older workers- those age 65 and older- have always been present but their proportion in the workforce has been on the rise at rates that far exceed any change in their proportion of the population. 

For my recent presentations to audiences in the US, Canada and Australia, I customized the country-specific data on older workers.  Aside from scale, the charts from each country were remarkably similar. In each of those countries, data about older workers shows:

• Workers over the age of 65 are increasingly continuing in, returning to, and entering the workforce
• Older workers are increasing in both full and part-time categories
• The trend has picked up pace since the early 2000s

Older workers are an increasing reality in the workforce

The phenomenon has not gone unnoticed.   Recent articles in the popular press have highlighted this change. 

“More than 53 per cent of Canadian men aged 65 or older were working in some form in 2015, including 22.9 per cent who worked full-time throughout the year, compared with 37.8 and 15.5 per cent, respectively, in 1995…”  [Michelle McQuigge, “More older Canadians choose to keep working, census finds,” McLean’s / The Canadian Press . Nov 29, 2017 ]

“Overall, 255,000 Americans 85 years old or older were working over the past 12 months. That's 4.4 percent of Americans that age, up from 2.6 percent in 2006, before the recession. It’s the highest number on record.”  [Andrew Van Dam, “A record number of folks age 85 and older are working,” Wonkblog Analysis , Washington Post, July 5, 2018]

“[T]he number of people over 65 remaining in the workforce has increased from 9.4 per cent in 2006 to 21 per cent in 2016.”  [Gegory Bray, “Older workers are still clocking on beyond retirement age”, The Observer, July 12, 2018]

The US quarterly data demonstrate this dramatic increase.  The 1999-Q4 count was just under 4 million workers age 65 and older.  By 2018-Q2, the number was just shy of 10 million.  And employment is not limited to those in their mid-to-late sixties.  Older workers who are farmers, clergy, or supreme court justices may make headlines but workers in their seventies, eighties and beyond are increasingly represented across a broad spectrum of occupations. 

“A record number of folks age 85 and older are working.
Overall, 255,000 Americans 85 years old or older were working over the past 12 months. That's 4.4 percent of Americans that age, up from 2.6 percent in 2006, before the recession. It’s the highest number on record.”[ Andrew Van Dam, “A record number of folks age 85 and older are working. Here’s what they’re doing,” Washington Post [Wonkblog-online], July 5, 2018]

Similar trends in US, Canada and Australia

Using employment data from the US Current Population Survey (CPS).  Employment of those over age 65 has risen from about 10% of the population in that category in the early 1980s to 19% in 2018-Q2 [extracted from CPS using Unadjusted Employment – Population Ratio- Quarterly data].   

Charting this phenomenon in terms of full and part-time work shows trends that persisted despite the global economic crisis of the early 2000s—and may have accelerated, in part, because of it.  For the Canadian data, I compared the growth in both full and part-time employment to the change in population category. This chart is based on a CANSIM extract of monthly employment data, not seasonally adjusted. 

For a recent Australian presentation, I looked at monthly data but restricted the extract to categories of workers who identified and “full time” and reported 35 hours or more of work in the previous week.  For the part-time, I selected only those who identified as working part time and reported from one to 34 hours of work in the previous week. These restrictions likely understate the count but provide solid evidence of a steep increase in the working populations in both full and part-time categories. 

Implications for older workers … and those who will eventually joint their ranks

What are the implications of increasing numbers of older workers?  There are risks to workers themselves.  While there is strong evidence that work is actually good for your health and well-being, older workers have some greater risks:

Bodies change with age putting different joints and systems at risk of injury and disease

• Co-morbidities tend to increase with age, a factor that may complicate risk
• Working more years increases exposure to toxins and processes associated with work (thereby increasing the possibility of occupational disease)
• Recovery times for many injuries increase with age
• Degenerative conditions and the processes of normal aging may increase the risk of injury for previously “safe” work
• Medications necessary to control common conditions associate with age may alter perception, reaction times, strength, tolerance and stamina changing the factors that influence risk (and recovery). 

Some implications for Employers

Employers have a duty to protect all workers and older workers may face different risks as they age, even if they are in the same occupation and work location.  A female care aide in a long-term care facility always faces slip and fall risks but the risk of fracture as a consequence of that fall climbs sharply with age.  Employers need to know how risks change with age and take steps to reduce risk and prevent injury.

We all know older individuals who are extremely fit in mind and body.  We know that an astronaut can effectively do that job in his late seventies and that there are marathon runners in their 90s.  We all age but we age individually.  Arbitrarily banning all those over 80 from driving would be ageism; functional testing can avoid some arbitrary age limits.  How testing might be applied to power-line electricians, transport vehicle operators, or airline pilots may be successfully implemented but there are still risks.  Commercial airline pilots face age restrictions in some countries but the maximum age limit may be 60 or 65, apply to either or both captain and co-pilot, and may be absent all together in some countries.  Employers and regulators must address these risks for the safety of all their workers and others in the workplace.

We know that “newness” to a job is a risk factor for work-place injury.  Many older workers may be engaging in new jobs or working in new locations that may carry different risks from past experiences.  Employers must avoid the pitfall of assuming age, knowledge and experience obviate the need for orientation and risk-specific awareness. 

And for workers’ comp (and disability) insurers and law makers

Public policy decisions are developed in a context that often includes limited data. Most data sets are historical and that typically means legislation is driven forward while looking in a rear-view mirror. 

Laws or policies that have an inherent assumption of retirement at a specific age or based on historical norms are no longer adequate.  The default assumption that, but for a work injury or disability, retirement would have occurred by age 60 or 65 is no longer be justifiable.  Wage continuance and compensation for injured or disabled workers beyond age 65 ought not to be arbitrarily limited when societal expectations have changed so dramatically.

There are implications for rehabilitation and return-to-work practice as well.  Disability management professionals and return-to-work coordinators will increasingly face accommodation challenges for older workers who anticipate and expect to work rather than be steered to a pre-mature and unwanted departure from the workforce.  With societal acceptance and even need for older workers, the parameters of “early retirement” may well move north of 70.

Changing expectations of when we will retire

In the 1980s and 90s, the expectation of “freedom 55” was common among the working population.  According to recent surveys of the working population:

• In  the US [2017 data], the majority of workers (53 percent) plan to work past age 65, (13 percent plan to never retire). [Transamerica, 18^th Annual Transamerica Retirement Survey: A Compendium of Findings About American Workers, June 2018, TCRS 1364-0618]
•  In Australia [2016/17 data], 50% of workers intended to retire between 65 and 69 years (53% of men and 47% of women) and 20% intended to retire at 70 years and older (22% of men and 18% of women) [Australia Bureau of Statistics,  6238.0 - Retirement and Retirement Intentions, Australia, July 2016 to June 2017, December 20, 2017]
• In Canada [2015 Census Data], Over 53 per cent of men and 38 of women aged 65 or older were working.  [ Statistics Canada, Census in Brief: Working Seniors in Canada,  Release date: November 29, 2017]

           

The reality of an increasing population of older workers requires adjusting our expectations and actions toward employment, prevention/OH&S, and workers’ compensation.  The trend toward greater participation of older workers in the labour force is not going away.     It is time to reassess policies and our own perceptions regarding the length of our working careers. 

What do changing demographics mean for workplace health and safety?

If you knew your workforce was going to experience changing risks, increased exposure, longer recoveries from injury and greater effects associated with co-morbidities, you would act!  The fact is, our workforce is changing and few organizations are even aware of the change let alone the consequences.   

[This post contains slides and content arising from my presentation to the Occupational and Environmental Medicine Association of Canada (OEMAC) Scientific Conference  September 2016].

The aging population is not just a North American problem.  The median age of the population in most industrialized countries is projected to rise dramatically.  I adapted the following Pew Institute graphic to include Canada and Australia but its message is clear:  over the next few decades, the median population age of many of the most important economies in the world is going to rise. 

For Canada, the US and Australia, this shift to an older population will not be limited to the median age.  Populations of older people are growing while birth rates are low or falling and immigration levels stagnant.  Because demographics drives the demand for goods and services and provides the supply of workers, changing demographic patterns are altering the character and needs of the population, the labour force, the economy and more.   

Demographic change drives both the supply of potential workers and demand for goods and services.   The Canadian population, for example, is growing at about 1% per year overall.  The working age population (18-64) is growing at about the same rate but the oldest and youngest segments of the population have very different profiles.  In the last decade, the population over the age of 65 has risen by more than a third and is nearly 50% larger than it was in 2001.  On the other hand, the population ages 0 to 17 years of age has actually declined over the same time frame. 

Canada’s population projections all point to a continuing trend toward an older population.   The Canadian population will rise by a little more than 5 million in the next thirty years but the increase in the population over age 65 will account for nearly 90% of that growth. 

Already we are seeing skill shortages in several sectors and regions related to this demographic change.  I mentioned the population over the age of 65 has risen by about 50% since 2001 but the numbers continuing to work full time have risen by 350% over the same time.  Part-time work for those over age 65 has also risen by about the same percentage.  Full and part-time work for those over 70 has also risen by more than 250%. 

This trend is also evident in Australia:

"The majority of Australians intend to retire between 65-69 years, but the results show that now over a quarter of males 45 years and over plan to work past 70 years.”  [Australian Bureau of Statistics, Australians intend to work longer than ever before, Media Release 40/216, 29 March 2016]

The trend toward more workers being engaged in full time work beyond age 65 is particularly evident in the US data.  I recently extended published US data to capture more recent developments that show full time employment dominates among those working beyond age 65.

We are not only seeing an increasing number of older workers in the economy, but the distribution of even the category of older workers in some industries is trending toward the upper age limits of recorded data.  For example,  I used Canadian Institute for Health Information CIHI data on registered nurses and nurse practitioners (RNs and NPs) as  an example and found that the distribution of those aged 70 and older has double in the last decade. 

By about 2030 under most projections, the category of persons aged 80 and older will outnumber any other 5 year age group in our population.  This has implications for the demand on care services, healthcare, housing, transportation and many other aspects.  One example of this trend is the dramatic rise in Licensed Practical Nurses (LPNs), a profession highly associated with care for the elderly and disabled.  In the last decade, the number of LPNs has risen with the older population while the supply of RNs and NPs has tracked closer to the growth rate of the population aged 18 to 64. 

Of course, people who decide to go into nursing or healthcare of any sort are needed but that also means they are unavailable to become electricians, truck drivers, educators, researchers, programmers and construction workers—occupations that are also necessary to the growth and maintenance of our economy.  The problem of limited supply of youth and a falling birth rate means these roles are going to have to be filled by others.  We are already seeing a dramatic rise in the working population over age 65 but this, too, has its implications. 

Working longer means greater exposure to hazards, greater risk of injury and complications due to comorbidities and conditions related to normal ageing.  How prepared are employers and safety professionals to address these changes? Are workers adequately aware of the risks?  Are safety professionals and employers aware of changing risk profiles of older workers?  Are there appropriate ergonomic tables to provide guidance on strength and repletion limits for older workers?  Do workers’ compensation laws adequately address work careers that may extend into their seventies, eighties and beyond?  Are health and safety systems capable of addressing risks associated with older age groups not previously prevalent in your workplace?

There is a lot of evidence that work is good for your health and wellbeing.  That applies to older individuals where work can provide income security, mental stimulation, exercise, socialization, and opportunities to “give back” or do something meaningful and productive with one’s time.  Moreover, many workers approaching retirement age today have skills, knowledge and experience that are just not available in the labour market.  These factors and the demographic changes noted above mean we are seeing more older workers in the workplace—a trend that will continue for more than another decade. 

It is not too late to act.  Understanding the changes is the first step… and perhaps a self-serving one:  chances are, if you are working today, you will be working to an older age than your parents or grandparents.  

Is age 70 or 75 becoming the new 65?

I was in Washington, DC last week speaking on the impact demographic change is having and will continue to have on workplaces.  After the “Global Economic Crisis” and severe recessions in many countries, there is evidence that workers delaying retirement and even re-entering the labour force.  Demographic changes is also having an impact on the supply of qualified younger workers to take the place of older workers poised to exit the labour force. 

In preparing my remarks I came across a blog post by Alicia H. Munnell  on The Wall Street Journal’s Market Watch site entitled, “Social Security’s real retirement age is 70” [October 23, 2013].  She writes:

Social Security’s retirement age is 70.  The simple fact is that monthly benefits are highest at age 70 and are reduced actuarially for each year they are claimed before age 70.  This is a relatively new development, which may explain why Social Security’s retirement age is the best-kept secret in town.  But I think it’s time we told folks.   And then we need to clarify what all this talk about raising the so-called full retirement age really means.

US Social Security and the Canada Pension Plan (CPP) are similar in many ways.  CPP also provides the greatest benefit to those who postpone receipt to age 70. Yes, 65 is still the reference year for retirement but waiting has its rewards and these are increasing.   From 2011 to 2013, the Government of Canada has gradually increased the incentive to delay collecting CPP.  As of this year, 2013, if you start receiving your CPP pension at the age of 70, your pension amount will be 42% more than it would have been if you had taken it at 65. 

Put another way, if you assume the point of view of age 70 as the reference year at 100%, then retirement at age 65 has an initial monthly CPP payment of only 70.4% of the monthly amount at age 70.  Because CPP is also increasing the “penalties” for retiring early, in 2013, a 60 year old retiree would get only 47.6% of the retiree delaying receipt of CPP to age 70. 

Now, for many people the incentive or penalty is irrelevant.  Health and income may simply make delaying receipt of CPP out of the question.  For others, particularly those that are in relatively good health and who may have invested heavily in education before starting work, work beyond age 65 may be a necessity.  The employment rate of for males 65 and over with a university degree was 25.3% in 2012.  For those 65 and older with educational attainment above a bachelor’s degree, the employment rate was nearly 30% in that year.  Both the employment rate and actual numbers of these older workers is increasing.  [CNSIM Table 282-0004 Canada, Employment rate by Educational Attainment for selected age groups 2012].

Canada and the US are well above the OECD average for life expectancy.  The life expectancy and labour force participation rate for those over the age of 65 are also above average-- and rising-- but still below  life expectancy and participation rates in some countries such as Sweden.  Sweden’s centre-right  Prime Minister,  Fredrik Reinfeldt , recently put it bluntly:  Swedes should be prepared to work until they are 75 and to change careers in the middle of their work life if they are to keep the welfare standards they expect.  He also note that half of today's children in Sweden can expect to become 100 years old and there has to be a change in the way the Swedes view their work life.

The point is simply this:  we are seeing and will continue to see more workers aged 60, 70 and older in our workplaces.  We need them.  Work is good for their health and well-being.  They want to work –some for the money but many for social and mental stimulation reasons.   It is time to rethink policies and attitudes that fail to appreciate this changing reality.