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Working and ageing - Cedefop - Europa

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CHAPTER 3<br />

Demographic changes <strong>and</strong> challenges in Europe with special focus on Germany 51<br />

during their working lifetimes. Activating employment policy has to provide <strong>and</strong><br />

institutionalise transitional (framework) regulations between work <strong>and</strong> nonwork<br />

<strong>and</strong> create possibilities for individuals to react successfully to breaks in<br />

their life cycles or working life patterns. The degree to which individuals react<br />

successfully to critical life events determines the quality of their lifetime<br />

careers. This also implies a political debate on the different transitions. It is<br />

necessary to create possibilities for individuals to maintain a continuous link<br />

with the labour market throughout their lifetimes. If individuals are (temporarily)<br />

outside the labour market, institutional stimuli should exist to enable individuals<br />

to return to work. It is important to invest continuously in human capital. It is<br />

essential for policy to reduce irreversible choices. To support training activities<br />

of individuals, guidance <strong>and</strong> counselling through public service providers could<br />

be helpful. An example of a successful instrument is the training cheque<br />

programme in the German federal state of North Rhine-Westphalia. It offers<br />

enterprises <strong>and</strong> employees in SMEs financial support for continuing vocational<br />

training. Use of the training cheque requires obligatory, but free counselling<br />

at consultation centres (Jelich, 2009; Moraal 2007b).<br />

The enterprise is an important determinant of working life patterns. <strong>Working</strong><br />

life patterns are linked directly to processes within enterprises. Among other<br />

things, enterprises need to adapt to rapidly changing market conditions while<br />

ensuring a certain stability <strong>and</strong> continuity of production. Flexible use of the<br />

labour force secures optimal use of production factors. However, too much<br />

emphasis on flexibility also harbours dangers, for example to continuity of<br />

labour supply. High rotation of personnel bears high operational costs (such<br />

as induction/training), as well as diminishing staff commitment <strong>and</strong> enterprise<br />

loyalty <strong>and</strong> insufficient investment in human capital. Participation in working<br />

life is a condition for social inclusion of individuals <strong>and</strong> societal groups.<br />

However, individuals are increasingly confronted with voluntary <strong>and</strong><br />

involuntary transitions in <strong>and</strong> out of work.<br />

3.4.2. Transitional forces on the labour market: the ʻpush, pull, jump,<br />

stay, (re)entryʼ approach<br />

This section focuses on flexible transitions from the core labour market to<br />

retirement (or temporary disability) <strong>and</strong> vice versa (transition V) as well as<br />

from (long-term) unemployment of older persons to the core labour market<br />

<strong>and</strong> vice versa (transition II). These transitions, however, are not mere supply<br />

<strong>and</strong> dem<strong>and</strong> processes, as the ʻpush, pull, jump, stay, (re)entryʼ approach<br />

stipulates (Bredgaard <strong>and</strong> Larsen, 2005; Gambetta, 1987; Sørensen <strong>and</strong><br />

Møberg, 2005). In this approach, patterns of different combinations of

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