No Evidence Retirees Returning to Work Deprive Others of Employment – Joe Issa Famed St. Ann businessman and civic leader Joe Issa, who champions an enabling environment for positive youth engagement both in the workplace and the wider society, says he does not see any evidence that retirees who return to work are depriving others especially young people of employment – a phenomenon known by economists as the “lump of labour”.
While this issue is not currently being highlighted in the local media, a former university lecturer is raising the issue in St. Lucia, pointing out that “whether or not this idea is considered a fallacy by many economists today, the fact remains it has been widely discussed in academic circles, albeit without final resolution.”
https://www.slideshare.net/FundacionAreces/elsa-fornero “I really don’t think it’s a big issue in Jamaica,” said Issa when asked in a recent interview, adding that “there is no evidence that retirees who return to work are taking jobs away from other people, especially the youth, who make up half the population and most of the unemployed.” Issa argues that far from having long term consequences for the economy, the return of retirees to the labour force could very well mean the difference between thousands of young people dropping out of school, and continuing or even pursuing further education. “It could also mean the difference between enabling the family to continue living the lifestyle they have become accustomed to, and all of a certain not being able to live it,” says Issa, who promotes healthy lifestyle among the youth through sport. As head of the Cool Group of companies located in Ocho Rios, Issa contends that “in reality, most retirees who return to the workplace could not have been easily replaced by their young sons and daughters or anyone else for that matter, either because of sex, age or lack of knowledge and expertise in the field, and that can apply to even university graduates as well.”
Issa says the majority of retirees in Jamaica are former public and private sector workers most of whom did not retire at the executive level, but would still have acquired certain skills that can’t be found in rookies, and most institutions and companies in particular can’t afford to disrupt production to accommodate what is otherwise a worthy act of giving priority to young people or giving others a bread.” “Firms in particular have their own realities that are reflected in the main reason for their formation, which is to make money for shareholders and this cannot be compromised.” he says. Issa notes, however, that within their social responsibility programme many firms run training programmes for young people and then employ them or find them employment afterwards. In many cases too, companies employ young people to understudy those who are retiring or being promoted; in other cases they take on students to give them work experience particularly during the summer. He posits that “all of these interactions by both private and public sector institutions and their impact have not been put into data; neither has the evidence that retirees who return to work are taking jobs from young people and others and that this is bad for the country.” Pointing to the reality of a shrinking Jamaican population that is ageing rapidly, Issa says the only implications for the economy of an ageing population is in terms of increased welfare medical costs since a high percentage of the elderly suffer from chronic diseases; otherwise most of them own their homes and are financially independent. This is consistent with a survey which found that over 70 per cent of the elderly own their homes, and most report being financially independent.