Page 14 of AARP Summer Journal

Labor force participation among those 50 and older is low in almost every European country. However, the reasons for that are different. In Sweden and Norway many people between ages 50 and 65 receive disability insurance. In countries such as France, Germany and Spain people tend to get old-age pension. In either case, older people tend to be excluded from the labor market well before they reach 65. Labor market exclusion will be one of the main topics during the current Swedish presidency of the EU. The Swedish government has undertaken a major reform of the social security system during the last two years. The focus of these reforms has been twofold.

First, Sweden seeks to promote early intervention shortly after a worker is inflicted with illness or injury that forces employment absence or labor market withdrawal. Second, they want to open up a way back into the labor market for people with disability insurance and long term sickness benefits.