Increased participation of the over-55s will be a key feature in meeting the demand for labour when Ireland returns to a tight labour market in the medium term, the Minister for Labour Affairs, Mr Kitt, said at the publication of research reports on older workers.

The Labour Market: Participation of Over-55s in Ireland, commissioned by Forfás on behalf of the Expert Group on Future Skills Needs and National Competitiveness Council, said most governments and many employers in EU and OECD countries were reversing the support they gave in the 1970s and 1980s to the promotion of early exit from the labour force, and are formulating and pursuing policies to encourage greater labour force participation by older people.

But the report found there were barriers to participation in Ireland, including an absence of suitable jobs, lack of flexible working arrangements, concern about the impact of paid employment on pensions and benefits and the existence of age discrimination.

Among the policy recommendations suggested are: measures to raise the awareness of the importance of older workers; measures to promote flexible working practices; identification and reduction of disincentives to gradual retirement that may be embedded in pension schemes or tax arrangements; a review of early-retirement provisions; a greater awareness of take-home pay for specific jobs; and measures to combat age discrimination.

A second study, Older People's Preferences for Employment and Retirement in Ireland, commissioned by the National Council on Ageing and Older People, found older workers wanted greater flexibility in workplace policies to enable them to retire on a more gradual basis than is the norm

"The present regime is too rigid, too inflexible. It does not allow people the choice they require, particularly in regard to retiring gradually over a period of time," said Dr Michael Loftus, chairman of the National Council on Ageing and Older People.