Causes and consequences of low economic activity of older people in Serbia - causes and consequences

Abstract

Demographic aging, as well as the situation on the Serbian labour market, have affected the changes in the age structure of the workforce. The share of active persons older than 50 years in the total labour force has increased, and the share of young people has fallen. In 2017, 27.2% of total active people are in the age group 50-64. Despite the positive trends in the period 2012-2017, the indicators of economic activity and employment of the population in these age groups in Serbia are lower, compared to the rates for the EU countries. Low activity and employment of the older people is the result of leaving the workforce before the retirement age. The poor employment opportunities for older workers meant an early exit from the workforce and their transition to inactivity. The reasons for early exit from the workforce are illness or disability too. Out of the total number of pensioners in Serbia in 2017, 17.1% were disability pensioners. Chronic non-communicable diseases are the leading causes of illness, disability and premature death (tumors and diseases of the bloodstream). In addition to the economic consequences, the low activity of the older population has numerous social consequences. Abandoning work causes marginalization and often leads to complete exclusion from social life. Therefore, stimulating the economic activity of the elderly is one of the more important goals of national policies. It implies the postponement of the retirement decision and the extension of work. Higher employment among the elderly contributes to a better balance between the active and inactive elderly population. Lifelong learning and professional development is a way to improve the position of the elderly in the labour market and increase their employment.