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Title page 1

Contents 6

Foreword 4

Acknowledgements 5

Executive summary 8

1. Career mobility at older ages in Belgium: Context and key trends 10

In Brief 11

1.1. Mobilising the employment potential of older workers is a priority in Belgium 12

1.1.1. Better engaging older workers in Belgium is a priority against the background of a rapidly transforming labour market 12

1.1.2. The employment situation of older workers in Belgium has improved over time, but considerable gaps remain 16

1.2. Mid-career mobility can lead to improved labour market outcomes for older workers 18

1.2.1. Voluntary mobility can improve the earnings and working conditions of older workers 19

1.2.2. To improve employment outcomes in later life, intervening as early as possible is crucial 20

1.2.3. By increasing the quality and sustainability of employment, mid-career mobility could prolong working lives 23

1.3. In Belgium, both the quantity and quality of job transitions decrease with age 24

1.3.1. Belgium has low job mobility, particularly at older ages 24

1.3.2. Investment in high-quality labour market transitions is essential for older workers 30

References 32

2. Removing structural barriers to mid-career job mobility and preventing transitions out of work at older ages 36

In Brief 37

2.1. Structural barriers in the labour market inhibit mobility in the mid-to-late career 39

2.1.1. Employment protection needs to be carefully calibrated to maintain job security while encouraging mobility 39

2.1.2. Seniority wages for white-collar jobs discourage the hiring and retention of older workers 40

2.1.3. Age discrimination is a major barrier to hiring and career progression of older workers 42

2.1.4. Greater mobility between regions could enable improved labour market matching 44

2.2. Action is needed to prevent transitions out of work at older ages 46

2.2.1. Premature transitions out of work have historically been common in Belgium, driven by early retirement schemes 46

2.2.2. Reforms to the unemployment insurance system could increase incentives to seek employment for mid-career and older workers 48

2.2.3. Further reforming the return-to-work system is a major concern amid soaring numbers of older workers in work incapacity 51

References 60

3. Adapting workplace policies for an ageing workforce and retaining late career workers 65

In Brief 66

3.1. Age management policies can retain and engage older workers 67

3.1.1. Age management policies are needed to enhance job quality at older ages 67

3.1.2. Investment in age management can support longer working lives in Belgium 69

3.2. Supporting companies in establishing age management policies 69

3.2.1. Social partners in Belgium play a crucial role in implementing age management 70

3.2.2. Companies need targeted support and guidance to implement age management 72

3.3. Investment in healthy workplaces is a key part of age management 74

3.3.1. Belgium has an advanced legal framework and institutional structure on workplace health prevention 74

3.3.2. Increased support, enforcement and incentives can improve the quality of preventive measures, particularly in SMEs 79

3.4. Access to flexible work can enable participation of mid-career and older workers 83

3.4.1. Belgium has introduced many measures to increase access to flexible work 83

3.4.2. Flexijobs could be an interesting option for retired workers, but there are concerns about their broader impact on job quality 85

3.4.3. Various career interruption schemes exist throughout the career, but their effectiveness is unclear 87

References 93

Notes 97

4. Investing in the career progression of mid-to-late career workers through training and career guidance 98

In Brief 99

4.1. Increasing participation in adult learning in the mid-to-late career to facilitate job transitions and enhance career progression 101

4.1.1. Despite high investment, participation in education and training is relatively low, particularly among older workers 101

4.1.2. Limited time and lack of flexibility are crucial barriers to adult learning participation at older ages 105

4.1.3. Financial incentives can play a role in supporting transitions at older ages, but need to be well-targeted 109

4.1.4. Reducing complexity and fragmentation in adult learning can engage and motivate older workers 112

4.2. Career orientation and guidance in the mid-to-late career can enable well-planned, high-quality mobility 114

4.2.1. Strengthening the participation of mid-to-late career workers in career guidance, regardless of employment status 115

4.2.2. Social partners can provide career advice and orientation for mid-to-late career workers through sectoral funds 119

4.2.3. Early support is needed for older workers who face dismissal to enable transitions back into work 121

References 123

Tables 7

Table 3.1. Employment opportunity plans are often based on pre-existing measures, with little innovation 71

Table 3.2. Regular conduct of risks assessments varies significantly across sectors and firm size 79

Table 3.3. Main career interruption options in Belgium 87

Table 4.1. Many instruments to support participation in education and training for employees exist in Belgium 103

Figures 7

Figure 1.1. The Belgian population is ageing significantly 13

Figure 1.2. Labour shortages remain elevated in Belgium compared with most European countries 14

Figure 1.3. There are significant shortages in green and ICT jobs in Belgium, while exposure to generative AI is high 15

Figure 1.4. Employment rates of older workers have increased over time, but continue to lag behind in international comparison 17

Figure 1.5. Flanders records the highest employment rates in Belgium across all age groups 18

Figure 1.6. Job changes are associated with improvements in job quality 20

Figure 1.7. Employment status in the mid-career is strongly associated with subsequent employment 21

Figure 1.8. Flows into inactivity or retirement are common for those who are not employed in the mid-career 22

Figure 1.9. Mid-career mobility could lead to longer labour market participation 24

Figure 1.10. Job mobility has increased over time in Belgium, but is among the lowest in the OECD 25

Figure 1.11. Job mobility decreases significantly with age 26

Figure 1.12. Job mobility rates differ across regions, but decrease for older workers everywhere 28

Figure 1.13. Job mobility rates vary across sectors in Belgium 29

Figure 1.14. Older workers are more likely to make involuntary job transitions 30

Figure 1.15. Low-to-low skill transitions are more common at older ages 31

Figure 2.1. Belgium has one of the highest levels of employment protection in the OECD 40

Figure 2.2. Wages increase sharply with age for white-collar workers 41

Figure 2.3. The effective retirement age is very low in Belgium 47

Figure 2.4. The share of older people in pension or early retirement has declined over time 48

Figure 2.5. Unemployment benefit reform will bring benefit duration in Belgium closer to other OECD countries 50

Figure 2.6. The number of people in work incapacity has increased substantially amid declines in people claiming unemployment benefits and... 52

Figure 2.7. Exits from work incapacity towards the labour market are most likely in the first three months of incapacity 56

Figure 2.8. The number of return-to-work co-ordinators is increasing, but remains insufficient 59

Figure 2.9. Partial return to work is becoming increasingly popular in Belgium 60

Figure 3.1. Many older workers experience high job strain, particularly in some sectors 68

Figure 3.2. Many older Flemish workers say they could work longer if the work was adapted 69

Figure 3.3. A large share of companies use health specialists in Belgium 77

Figure 3.4. Exposure to workplace risks has largely declined over time, but significant risks remain 78

Figure 3.5. The capacity of the labour inspectorate is decreasing over time 80

Figure 3.6. A large share of women and older workers works part-time in Belgium 84

Figure 3.7. Flexi-jobs in Belgium are expanding and widely used among prime-aged workers and increasingly among seniors 86

Figure 3.8. Tightened eligibility conditions led to a decrease in career interruption take up 88

Figure 3.9. General time credit scheme is popular among women at child-bearing age 89

Figure 3.10. Belgian employees still take end-of-career time credit scheme relatively early 91

Figure 3.11. Career interruption schemes incur high costs 92

Figure 4.1. Spending on training is high in Belgium relative to the OECD average 102

Figure 4.2. Participation in adult learning is lower than average in Belgium, particularly among older workers 104

Figure 4.3. Motivation to take part in training is low including mid-career and late career workers in Belgium 105

Figure 4.4. Among older people who would like to participate in training, cost is not the primary barrier 106

Figure 4.5. Educational leave can remove time barriers to training, but older workers do not always participate 107

Figure 4.6. Older workers are less likely to benefit from training subsidies 110

Figure 4.7. The profile of people participating in career guidance differs by region 116

Boxes 43

Box 2.1. Diversity plans encourage more inclusive workplace practices in Brussels 43

Box 2.2. The Canadian Job Bank makes regional labour market information more accessible 46

Box 2.3. Pathways for return to work in Belgium 53

Box 2.4. Early intervention in return to work in OECD countries 57

Box 3.1. Sectoral collective bargaining agreements on demographic change in Germany 72

Box 3.2. In Austria, Impulse Consulting for Companies, co-ordinated through PES, helps employers to drive forward age management in the workplace 73

Box 3.3. ESF+ funding in Czechia enables SMEs to implement age management practices 74

Box 3.4. Companies in Belgium must have both internal and external services for health prevention 75

Box 3.5. The Netherlands has a programmatic approach to inspections with focus on psychosocial risks 81

Box 3.6. Online Interactive Risk Assessment resource helps employers manage workplace risks 82

Box 3.7. Belgium is gradually expanding flexible work options 85

Box 4.1. Qualifica centres in Portugal successfully promote the recognition of prior learning 109

Box 4.2. Targeting financial support for adult learning at mid-career and older workers can support participation 111

Box 4.3. Programmes to support longer training can enable substantial up- or re-skilling and career transitions 112

Box 4.4. Efforts to create individual learning accounts in Belgium 113

Box 4.5. Career guidance services in OECD countries are expanding to include individuals of all employment statuses and all ages 118

Box 4.6. There are promising initiatives to develop the career guidance function of sectoral funds 120

Box 4.7. Implacement foundations in Austria can support companies facing structural labour market change 122

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