Implementation of new technology and the intention to leave the labour market before or after retirement age

Abstract

Background: Demographic changes are resulting in an ageing population and increasing labour market participation among older workers is, therefore, a political priority. Along with demographic changes, the labor market, and the way we work, is undergoing fundamental change in these years. This applies to an increasing degree of automation and digitalisation where the implementation of new technologies to a large extent – and across industries – is changing the content and organization of the work. This may mean that the working population, including senior employees, must show even higher levels of adaptability to meet the future working life and its challenges. Aim: To investigate the association between implementation of new technology and the intention to leave the labour market before or after statutory retirement age across job function. Methods: The study is based on the employee survey in the project SeniorWorkingLife where 10,776 senior workers (+50) in 2018 answered questions about implementation, and education and training in new technologies in the workplace. Logistic regression was used to model the odds of either leaving the labor market before or after statutory retirement age due to new technology as a function of 1) strata (job function category: work with symbols, work with people, work with production) and 2) factors related to the introduction of technology (involvement in the introduction of the new technology, adequate training in the use of the new technology, the need for new skills as a result of the new technology, and whether the new technology either increases or deteriorates the quality of the work). Results: The fully adjusted model showed higher odds of leaving the labor market before retirement age due to new technology (push) and lower odds of staying in the labor market until after retirement due to new technology (stay) among senior employees working with people. In addition, new technology at work contributes less to stay among women, while neither push nor stay due to new technology seems to be associated with the age of the seniors. In addition, factors such as involvement in the introduction of the new technology, adequate training in the use of the new technology, needing new skills as a result of the new technology, and whether the new technology either raises or deteriorates the quality of work are important for whether the technology is perceived as a push or stay factor. Discussion: The introduction of new technology into working life appears to be a factor that infl uences seniors’ intention to leave the labor market before or after retirement age. In particular, implementation of new technology seemed to have an impact on the seniors who work with people who are more likely to be pushed out of the labor market due to the new technology. Importantly, employee involvement in the implementation process along with education and skills development have an infl uence on whether technology is perceived as a factor that can extend or shorten working life.