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To facilitate comparisons through time, data using this new methodology have been revised back to 1991. 47 Despite these overall improvements, there is some concern that the true degree of labour-market slack among older workers is underestimated: many older workers who can work may have moved to welfare schemes such as sickness, disability and social assistance benefits. 14 Finally, the extent and persistence of long-term unemployment among older unemployed workers are problematic in Spain. 15 These figures are nearly 20 percentages points higher compared with the share of long-term unemployment among prime-aged individuals.

A summary of an analysis of transition probabilities over the period 1987-1997 reveals that (Tables A and B): − older workers are more likely to lose their job: during the period under analysis, on average, 11% of older workers employed in any given year had left employment the year after. The figure is less than 7% in the case of prime-age workers. − once they lose their job, older workers are more likely to leave the labour market altogether (only one-quarter become unemployed). e. they remain “active”.

1). Furthermore, in the national agreement on pensions signed in 2001, there were discussions that the period of earnings on which the retirement pension is based should be increased from the present 15 years. However, in May 2003, any planned changes to the method of calculating pensions or further reform of any kind were postponed until 2004. 1. The new “flexible retirement” system Incentives to retire later: For those working over the age of 65, the coefficient applied to the regulatory base for the calculation of their final pension will be raised by 2% for each extra year of work, with no age limit.

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