Senior workers in Luxembourg are undervalued, recruiters said in a survey led by the UEL business union, with misconceptions about salary expectation, job level or productivity hindering their progress in the job market even though a recent pension reform expects them to work longer.
Plans presented by the government aim to bring the effective retirement age nearer the legal retirement age of 65 by making people work longer than 40 years to receive a full pension and retire early.
Less than 50% of residents aged 55 to 64 are currently employed, according to a survey published on Thursday by employer union UEL in partnership with recruitment and HR associations fr2s, HR Community, and industry federation Fedil’s employment services.
By comparison, nearly 70% of people in this age group are employed on average across the OECD, said the UEL report.
The survey, presented in the Barometer of Employment, found that seniors (defined as workers aged 50 or over) are often considered primarily for managerial roles, even though many are interested in operational positions. But while recruiters said 25% of candidates they interview are aged 50 or over, only 15% of new hires are in that age group.
While more than half (54%) of HR experts see cost as a factor in not recruiting senior workers, the survey concludes that older workers generally have realistic salary expectations. They can even be lower than assumed by companies, as many candidates prioritise meaningful work and personal fulfilment over pay.
When experience isn’t enough: Luxembourg’s senior professionals struggling to find work
Responding to the survey, one in three recruitment experts said they were unaware of incentives aimed at encouraging the hiring or retention of senior employees, while a quarter considered existing measures insufficient.
Strengthening financial incentives, alongside greater awareness among employers and workers, was identified as a key lever to improve senior employment.
The survey also saw 80% of recruitment professionals say that seniors are not sufficiently valued in the workforce, despite offering experience, stability and a wealth of expertise.
Stereotypes such as a lack of flexibility among older workers or productivity issues were listed by fewer than 10% of recruiters as problems.
Tapping into this underutilised pool of talent is not only an economic opportunity but a strategic priority for Luxembourg, said the UEL press release. “The Barometer shows the need to overcome certain false perceptions that hinder senior hiring and to broaden the spectrum of opportunities available to older workers,” it said.
A UEL representative said the survey was shared with the member companies of all participating organisations but declined to confirm how many actually responded.
