The Employability of Senior Workers: The Importance of Social Networks

1. The Employability of Senior Workers: The Importance of Social Networks Dr Kaberi Gayen, Dr Emma Hollywood, Professor Ron McQuaid & Dr Robert Raeside Employment Research Institute Napier University Craiglockhart Campus Edinburgh Telephone 0131 455 4310 Email r.mcquaid@napier.ac.uk r.raeside@napier.ac.uk

2. Basic Premise • 30 years ago people entered work, formed friendships and then their world changed • No longer were their work based skills as important as manufacturing changed to a service economy • Many over the age of 50 were not in employment • In the absence of formal qualifications often “it is not what you know but who you know”

3. Need for the Study • Population Ageing (2002-27 No. of 16-29 year olds down 18%, 30-22 down 23%, 45-59 down 9%, 60-74 up 36%). • Activity rates among 50-SPA vary from 86% in Shetland to 52% in N. Lanarkshire (67% in Scotland) (2004) • Disney et al (1997) observe, half of men and one third of women of aged over-50 leave work before state pension age in the UK • Brown (2000) and Hollywood et al (2003) suggest that the Scottish economy may be adversely affected by the low level participation of people aged over 50 to state pension age and the unemployment among this age group is higher in Scotland than elsewhere in the UK • Older workers are particularly disadvantaged, even in relatively buoyant labour markets, due to individual aspects such as qualifications, job search strategies and perceived age discrimination (McQuaid and Lindsay, 2002)

4. Method • Survey Questionnaire • Focus on respondents’ demographic, socio-economic & social network characteristics, (Granovetter, 1995) • Interest in human and social capital, (Lin et al, 1981) • Four groups • Unemployed over fifty years old but below state pension age • Employed over fifty years old but below state pension age • Unemployed below the age of fifty • Employed below the age of fifty

5. The sample 196 people interviewed – provided data on 530 individuals Sample centred in Edinburgh Fairly representative of employment patterns in Edinburgh However – construction is under represented

6. Characteristics • More people under 50 live alone • 58% own their own homes, 23% rent from the local authority • 25% of those unemployed in the 50+ age group were previously employed in manufacturing – only 13% of those unemployed under fifty were previously employed in this sector • Both groups reported Job Seekers Allowance as the main benefit received • The older group rely more on Job Centres, friends and family in job search than younger counterparts, who make more use of internet and direct approaches • Both groups found jobs in the service sector to be acceptable • Lack of IT skills stated as the most important barrier to employment

7. Barriers to Employment

8. Barriers to Employment

9. Human Capital Work Qualifications Older group have: fewer academic qualifications But more work based qualifications More in part time work

10. Both age categories had similar number of contacts (mean 2.7 people) Unemployed had on average 1.9 contacts while those in employment had 3.63 contacts The under fifties are in more contact than those over fifty The under fifties feel more influenced by their network members than the older group, as do those in employment The under fifties discuss more frequently about work opportunities with their network members than the older group, as do those who are not in employment Social Network Findings Number of Contacts who are in Work Number of Contacts Relative Job Status of Contacts

11. Social Networks Strength of Ties

12. Social Networks Key

13. Social networks are important to explain people’s employment status (2 way causation) Employed people have more contacts Employed people have both higher human capital and stronger social capital Older people who are out of work and looking for jobs have fewer ties and very low social capital in terms of their social network There is a need to: Conduct surveys in other areas to try and obtain greater socio-economic diversity of the sample Triangulate findings by using alternative sample strategies, such as snowball samples, to measure the reciprocity of the relationships, which is a basic property of social network analysis Reassess the importance of social networks amongst the sample at other time points, perhaps in one year and three years in the future Supplement findings with ethnographic research based on observation of some sub-groups of the sample Attempt to achieve some face validity by reporting results back to parts of the sample to ensure that the researcher correctly interpreted their responses, for instance by using focus groups Initial Findings

14. Policy Recommendations • Employability related policies need to more systematically take account of social networks. As the social networks of the not employed people are so limited, especially among the older unemployed, job search and support agencies should work to help fill some of the roles of social networks. They should disseminate knowledge and support ‘social’ links. The ideas based upon the former Job Clubs or Pathways to Work are of interest. • It was found that the importance of human capital amongst the fifty year old plus group may not be as strong as that of social capital. Consequently agencies should focus more on trying to enhance the social capital of the over fifties, in addition to promoting life long education and qualifications. • There is a clear socio-economic gradient in terms of strength of social networks in that those who are poorer in society have weaker and less connected networks. Agencies should actively tackle this aspect of social exclusion.

15. References • Brown, R. 2000. Getting Old and Grey? The Implications of Demographic Change and Population Ageing for the Scottish Labour Market, Glasgow: Scottish Enterprise. • Disney, R., Grundy, E. and Johnson, P. 1997. The Dynamics of Retirement: Analyses of the Retirement Survey. DSS RR42, London. • Hollywood, E., Brown, R., Danson, M. and McQuaid, R.W. 2003. Older Workers in the Scottish Labour Market: A New Agenda, Universities of Stirling and Strathclyde: Scotecon. http://www.scotecon.net/publications/McQuaid%20older%20workers%20Full%20Report.pdf • Granovetter, M. 1995. Getting a Job: A Study of Contacts and Careers, 2nd edition, University of Chicago Press: Chicago. • Lin, N., Ensel, W., and Vaughn, J. 1981. “Social resources and strength of ties: structural factors in occupational status attainment”, American Sociological Review 46: 393–405. • McQuaid, R.W. and Lindsay, C. 2002. “‘The Employability Gap’: Long-term Unemployment and Barriers to Work in Buoyant Labour Markets”, Environment and Planning C- Government and Policy, 20(4): 613-628.

16. Dr Kaberi Gayen, Dr Emma Hollywood, Professor Ron McQuaid & Dr Robert Raeside Employment Research Institute Napier University Craiglockhart Campus Edinburgh Telephone 0131 455 4310 Email r.mcquaid@napier.ac.uk r.raeside@napier.ac.uk

17. Barriers to Employment

18. Social Networks Strength of Ties Key