The economic gains that could result from addressing issues preventing older workers returning to the workforce are significant
Age discrimination: A Barrier to Older Workers' Re-employment
Around 800,000 older individuals wish to resume working, but they encounter obstacles like inflexibility, accessibility issues, and discrimination. Research reveals that up to 330,000 retirees left the workforce due to the lack of flexible work, which amounts to 25% of the current job vacancies in the UK.
The UK is an outlier in older workforce participation
A study conducted by Demos and Anchor discovered that the number of workers aged 50-64 in the UK has decreased by 182,000 since 2019 – approximately one-sixth of current vacancies. The report identified the UK as an international exception, with the median OECD country observing a 2% rise in workforce participation among older individuals since the start of the pandemic. Experts suggest that if the UK can return to pre-pandemic levels of older people in employment, it could potentially generate £6.6 billion per year.
The report also mentioned that the UK could gain £9.6 billion annually year by achieving the same levels of older workforce participation as Australian, or over £30 billion by reaching Germany’s levels. It pointed out that prior to the pandemic, the UK had higher rates of older workforce participation than Australia, and in 2008, the UK’s rates surpassed those of Germany.
Recommendations for boosting employment among older workers
In its findings, the report offers several recommendations, including subsidising occupational health services, investing in an age discrimination hotline, and introducing a tax-free £1,000 bonus for workers aged 55 and older in occupations shortages, with annual incomes below £50,000. These recommendations come in response to official statistics released in September 2023 which disclosed the most significant employment decline on record, with a drop of 207,000 jobs, a situation not seen outside of a recession.
Sarah Jones, Chief Executive of Anchor, stressed the untapped potential in the aging population and the need to reverse the social and economic consequences of excluding older individuals from the workforce. She called for government action to empower older people and unlock their economic benefits. Andrew O'Brien, Director of Policy and Impact at Demos, highlighted the UK's labour shortages and slow economic growth, proposing that retaining older workers could significantly boost the economy. He urged the government to send a clear message valuing the contributions of older individuals to businesses and society.