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45 Plus: Choices in the labour market - Stage 3 Qualitative Study

Introduction

As part of its work on removing barriers and enhancing choices for people wishing to participate in the labour market, the Department of Labour (DoL) has identified that a large number of people aged 45 years or more are not in work. Research suggests that the ability of people aged 45 years or more to participate in the labour market could be supported by raising awareness of the benefits of participation, and by providing targeted career information, advice and guidance (CIAG).[2] Along with many Western countries, New Zealand is faced with skill and labour shortages, and an ageing population. Enabling all those who wish to work to do so would help mitigate these issues.

Based on the results of the Household Labour Force Survey (a quarterly survey of 15,000 households across New Zealand), Statistics New Zealand estimates that, for the year ended March 2003, 34 percent of the total working age population of 2,986,600 were not in the labour force and were not actively looking for employment.

While the largest concentration of those not in the labour force are younger people (who are more likely to be in full- or part-time education) and older people (who are more likely to be retired), non-participation rates start increasingly noticeably from the age of 55, particularly among women.

Against this background, DoL commissioned Research New Zealand to undertake research to identify:

  • the reasons for non-participation in paid employment of those aged 45 years and over
  • the potential role of CIAG in assisting that group
  • options for targeted CIAG that would benefit this group most and have the greatest uptake.

New Zealand residents aged 45 years or more and who are not participating in paid employment are referred to as mature non-participants in this report.

Research design

The research was conducted in three stages:

  • 45 Plus: Choices in the labour market - Stage 1: A review of relevant international and New Zealand research on programmes of career information, advice and guidance for older unemployed adults.
  • 45 Plus: Choices in the labour market - Stage 2: A large-scale national survey of New Zealand residents aged 45 years or more who were not in paid employment at the time of the survey.
  • 45 Plus: Choices in the labour market - Stage 3: A qualitative study of particular subgroups of non-working New Zealand residents aged 45 years or more, who were identified as being of interest as a result of the Stage 2 survey.

This report presents the findings of Stage 3. Where appropriate, it integrates the findings of the Stage 2 survey and notes similarities and differences between these two stages of the research.

Conclusions from the Stage 2 survey

To set the context for the qualitative study, the main conclusions from the Stage 2 survey are set out below. This survey was completed between 21 January and 20 March 2006 with a representative sample of 868 people aged 45 years and older who were not in paid employment at the time of the survey. The sample was stratified by age and ethnicity, and certain subgroups (Maori, Pacific peoples, Asian peoples and those aged 45 to 69) were over-sampled to ensure statistically robust subsamples for the purpose of analysis and reporting.

The survey questions focused on:

  • past experiences in and reasons for leaving the workforce
  • attempts to enter/re-enter the workforce
  • the extent to which job skill training had been undertaken to enter/re-enter the workforce
  • awareness of and access to CIAG to enter the workforce
  • reasons for not seeking to enter/re-enter the workforce
  • barriers to entering the workforce.

Mature non-participants are a diverse group

According to the Stage 2 survey:

  • most mature non-participants are NZ European/Other (81 percent); others are Maori (8%), Asian (7%) and Pacific peoples (4%)
  • most were born in New Zealand; one-quarter (27 percent) were born elsewhere
  • they can be found in rural areas (11 percent), small to medium-sized towns (31 percent) and larger urban centres (57 percent)
  • they own or have day-to-day day access to a car (91 percent) or public transport (69 percent)
  • most live in households without children i.e. single person and couple-only households (74 percent); others live in households with children (23 percent) and households that are run as flats (2 percent).
Financial status

Many mature non-participants may not need to work for financial reasons:

  • Eighty percent of those interviewed were currently receiving income from National Superannuation, benefits or some other government allowance.
  • Forty-five percent lived with someone who was receiving income from National Superannuation, benefits or some other government allowance.
  • Sixty percent had other sources of household income, such as from a partner's paid employment or investment income.
Past work experience

Almost all mature non-participants (99 percent) interviewed for the Stage 2 survey had worked in paid employment for three months or more at some time in the past. They had worked in a wide range of occupations and industries.

Fourteen percent had been out of the workforce for less than one year, 13 percent for one to two years, while 71 percent had not worked in paid employment for three years or more, and 38 percent had not worked in more than 10 years. This is clearly a function of age, as 42 percent of those who had not worked in the last 10 years were aged 65 years or more.

Reasons for leaving the workforce

The reasons for mature non-participants leaving the workforce varied:

  • Many left voluntarily - to retire (30 percent), to do something different (6 percent), because they did not want to work anymore (5 percent) and/or did not need the income (2 percent), or to return to school or university (1 percent).
  • Some left involuntarily, through dismissal or redundancy (10 percent).
  • Others left because of personal disabilities or for health reasons (19 percent), or as a result of an injury (4 percent).
  • Some left for personal or family related reasons, such as carer responsibilities (8 percent), because they had children (5 percent), or because they had married (4 percent).
Mature non-participants' interest in returning to paid employment

A reasonable proportion of mature non-participants (19 percent) were interested in entering/re-entering paid employment at the time of the survey. They were actively:

  • checking job advertisements (63 percent)
  • looking for work through friends, family and other contacts (41 percent)
  • applying for jobs (39 percent), or sending out CVs (27 percent)
  • contacting or registering with Work and Income (23 percent), or contacting recruitment agencies (16 percent).

They tended to be younger (aged 45 to 54 years old), male, and to have left paid employment in the last year (30 percent, compared with 14 percent of all mature non-participants). They were likely to have been dismissed or made redundant from their last job (21 percent, compared with 10 percent of all mature non-participants).

Reasons non-participants were not looking for paid employment

Respondents who were not looking for paid employment were classified into three, non-mutually exclusive groups:

  • Those who were not seeking work for personal health reasons.
  • Those who considered themselves permanently retired or financially secure and/or who did not want to work.
  • Those with carer responsibilities that made it difficult for them to work.

The group not looking for paid employment was more likely to be female (68 percent), to have been out of the workforce for more than six years (50 percent, compared with 30 percent of those currently trying to re-enter the workforce), to have left the workforce voluntarily for personal health reasons or because of carer responsibilities, and to have low or no educational qualifications.

Job skill and workplace related barriers to taking up paid employment

Most of those interviewed said that they faced job skill or workplace barriers that made it difficult for them to take up paid employment. Only 11 percent said that they did not have any such issues.

Those who were looking to enter/re-enter the workforce and those who were not mentioned these barriers to the same extent. The most frequently reported barriers were:

  • having the types of skills that employers want (54 percent of those looking to enter/re-enter, compared with 55 percent of those not trying to do so)
  • employers believing that older workers will not pick up skills for the job quickly enough (52 percent, compared with 47 percent).
  • being under qualified for available jobs (48 percent, compared with 50 percent)
  • believing the costs associated with training or studying for new skills are too high (46 percent, compared with 44 percent)
  • lacking work experience (32 percent, compared with 29 percent)
  • not having access to training to gain new skills (27 percent, compared with 37 percent).

Mature non-participants with higher educational qualifications were significantly more likely to be attempting to re-enter the workforce - 56 percent had qualifications beyond secondary school, compared with 34 percent of those not currently looking for work. Those who had no school qualifications were more likely to report that job skill and workplace barriers would make it difficult for them to take up paid employment.

Personal and life situation related barriers to taking up paid employment

In the Stage 2 survey, 89 percent of mature non-participants said that they faced personal or life situation barriers that would make it difficult for them to take up paid employment. Only 11 percent of those surveyed said that they did not have any such issues.

People who were looking to enter/re-enter the workforce were less likely to identify these barriers than those who were not. This is in contrast to the fact that both groups identified job skill or workplace barriers to the same extent (see above).

The personal or life situation barriers most frequently reported were:

  • having a personal health issue or a disability (64 percent of those not actively looking to enter/re-enter the workforce, compared with 41 percent of those who were looking for work)
  • having less leisure time for oneself (37 percent, compared with 25 percent)
  • having less time with family, friends and whänau (37 percent, compared with 25 percent)
  • carer responsibilities for a partner/parent or disabled person (29 percent, compared with 18 percent)
  • carer responsibilities for children (26 percent, compared with 19 percent).

One in five (20 percent) of those not looking to enter/re-enter the workforce said that having less time to do volunteer work or work in the community was a barrier for them. Those looking for work did not mention this. On the other hand, 44 percent of those seeking work did say that the cost of returning to education was a barrier. Those not looking to enter/re-enter the workforce did not mention the cost of education.

Overall, the Stage 2 survey found that more women than men reported personal or life situation barriers. Maori and Pacific peoples (who were much more likely to have carer responsibilities) were more likely to do so than NZ European/Others.

Levels of awareness of where to go for career information, advice and guidance

The Stage 2 survey found that 23 percent of mature non-participants did not know where to go for CIAG, should they want to return to the workforce.

Eighteen percent said they would go to the classified advertisement section of the newspaper, but this section typically contains little CIAG information.

Subgroups of interest - the focus of the Stage 3 qualitative research

Respondents for the qualitative research were recruited primarily on the basis that they were either actively looking (i.e. motivated) or not looking (i.e. non-motivated) to take up paid employment at the time. Mature non-participants who claimed they were absolutely not interested in working in paid employment or were retired were excluded.

The Stage 2 survey found that several subgroups were more likely to identify barriers to participating in paid employment. They were:

  • people with non-injury related disabilities or health issues
  • people with carer responsibilities
  • maori and Pacific peoples
  • people from rural areas
  • women.

This helped determine who was recruited to represent the non-motivated group of mature non-participants for the qualitative study.

The objectives of the Stage 3 qualitative research

The research objectives for the qualitative research were to:

  • provide greater understanding of the drivers and inhibitors to workforce participation among different subgroups of mature non-participants
  • provide a better understanding of how specific barriers operate, particularly about ageist attitudes and issues relating to disability
  • identify the best ways to present and deliver CIAG information to achieve the greatest uptake
  • identify how accessible different forms and channels are for providing CIAG
  • identify ways to optimise uptake among key subgroups.

Contents of this report

The remainder of this report comprises sections on:

  • understanding what drives interest in entering/re-entering the workforce
  • understanding how people react to barriers to entering/re-entering the workforce
  • understanding how best to increase the participation of mature non-participants in the workforce, that is, the role of CIAG.

Chapter 6 includes a detailed account of the research design for Stage 3 of the research. It describes the characteristics of the 24 respondents and the criteria for their selection.

The interview guide is included as Appendix 1.


[2] Career information, advice and guidance refers to services and activities intended to assist individuals, of any age and at any point throughout their lives, to make education, training and occupational choices and to manage their careers. Such services may be found in schools, universities and colleges, in training institutions, in public employment services, in the workplace, in the voluntary or community sector and in the private sector. The activities may take place on an individual or group basis, and may be face-to-face or at a distance (including help lines and web-based services). They include career information provision (in print, ICT-based and other forms), assessment and self-assessment tools, counselling interviews, career education programmes (to help individuals develop their self awareness, opportunity awareness and career management skills), taster programmes (to sample options before choosing them), work search programmes and transitions services. (Bridging the Gap, OECD, 2004)