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Trends<br />

Planning Ministry and by the National Commission to the<br />

International Year of Older People in 1999, the demographic<br />

evolution in Portugal will, over the next 10 years, continue to be<br />

marked by a gradual reduction on the base of the demographic<br />

pyramid, constituted by the young individuals up to 14 years old,<br />

and by a widening at the top of the pyramid, due to the increase in<br />

life expectancy.<br />

3. Trends and developments for older workers on<br />

the labour market<br />

Over the last few years, Portugal has presented a good performance<br />

in relation to the main labour market indicators. Since 1996, the<br />

employment rate has been one of the highest among the countries of<br />

the European Union, reaching 68.7% in 2001, having already<br />

exceeded the quantitative goal defined in the Stockholm Council for<br />

2005 (67%). <strong>The</strong> unemployment rate has also remained relatively<br />

low, when compared to some countries of the European Union<br />

(4.2% in 2001). However, a closer analysis shows some structural<br />

problems. Among them is the integration of the older workers in the<br />

Figure 6: Activity and employment rates (55-64 years old)<br />

54<br />

52<br />

50<br />

48<br />

46<br />

44<br />

42<br />

40<br />

labour market.<br />

Since 1993, the activity rate of the older workers has presented a<br />

positive evolution, having only diminished slightly in 2001 (Figure<br />

6).<br />

Regarding the employment rate of the older workers, since 1993 the<br />

trend has always been of positive growth, reaching 51% in 2001,<br />

thus exceeding already the European goal defined for 2010 (50%)<br />

(Figure 7).<br />

Indeed, Portugal has the third highest employment rate of the<br />

European Union in relation to the older age group, followed by<br />

Sweden and Denmark. According to the European Commission,<br />

the most recent projections for the employment rate of the<br />

Portuguese older workers point to a value of about 56.1% by 20105 .<br />

However, a closer analysis of the characteristics of the Portuguese<br />

older workers suggests some caution, mainly due to the low level of<br />

employability that they demonstrate. Portugal is the one country of<br />

the European Union where the percentage of the working<br />

population between 55 and 64 years old, having achieved at least<br />

1993 1994 1995 1996 1997 1998 1999 2000 2001<br />

Employment rate (55–64 years) Active rate (55–64 years)<br />

Figure 7: Employment rates (55-64 years old) in the European Union countries<br />

70<br />

60<br />

50<br />

40<br />

30<br />

20<br />

10<br />

0<br />

A B G DK S FIN F GR IRL I L NL P SE UK<br />

5 European Commission – Employment rate scenarios up to 2005 and 2010.<br />

Source: INE, Labour Force Surveya<br />

Eurostat, Statistics<br />

Source: Eurostat, Labour Force Survey<br />

136 Spring 2003 | European Employment Observatory Review

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