Latest labour market stats show why the government needs to act on NETER Crisis

Today’s labour market figures from the ONS show there remains a considerable and concerning drop-off in employment rates as people move into their 50s.  
Employment rates for the 50-64 age group now stands at 72.2% over the past three months meaning employment rates for this age group are 12.9 percentage points lower than for 35-49-year-olds.

The Centre for Ageing Better is calling on the government to take a specific interest and closely monitor the employment rates of the 50+ population and invest in more tailored support to help hundreds of thousands of people in this age group back into work.  

In launching its NETER campaign earlier this month, the Centre for Ageing Better revealed not being in education, employment or training is more common amongst people aged between 50 and state pension age than it is amongst young people. 

The centre is also calling on the Chancellor to commit funding in the Autumn Budget to tackle the problem. 

Analysis by the Centre for Ageing Better has shown that the total amount in government funding pledges to support young people back into work over the past decade is almost ten times larger than the amount pledged to tackle 50+ unemployment. 

Henry Allingham, Research and Evaluation Manager at the Centre for Ageing Better, said: 

“Unfortunately in a weak labour market, it is the workers at either end of the age spectrum who are suffering the most and the first to be discarded when employment opportunities become more scarce.   

“The stories of young people fruitlessly applying for their first job are heartbreaking. 

“But that is equally true of those aged in their 50s and 60s who are frozen out of the labour market with so much potential, experience and skills left to give and facing an extremely uncertain financial future with no income coming in. 

"We need the same approach to be applied for those aged between 50 and state pension age who are not in employment, training, education or retirement – a group we are calling NETERs. 

“Creating a new NETER measure would shine a light on a group that is largely invisible in existing labour market statistics.   

“The government should publish a NETER headline figure regularly alongside other labour market indicators and use this measure to drive a new strategy for longer working lives. 

“This measure should also be applied regionally to ensure the government’s drive for economic growth in every postcode also delivers for everyone in every age bracket. 

“Raising employment rates among the 50+ population is absolutely vital for people in that age group, but equally so for employers and our economy.  

“Our nation has a growing ageing population, the 50-64 age group will grow by twice as much as the 15-29 age group by the end of the decade. It is the age group that will meet future skills and labour needs and help drive economic growth. 

“We lag far behind other European countries in employment rates for older workers, closing the employment rate age gap between the 50+ population and younger age groups would yield billions in economic benefit.   

“It is time for the government to treat this issue with the priority its seriousness absolutely merits.”