Don’t write off the older workers who would return to work but for lack of opportunities and support

New Resolution Foundation research published today has suggested government policy is unlikely to persuade the large COVID cohort of older workers to ‘unretire’.

Instead the research recommends government efforts to boost Britain’s workforce should focus on supporting more mothers into work, encouraging older workers and supporting those with a disability stay in work.

Economic inactivity among all adults has risen by 830,000 since the start of the pandemic, with more than three-quarters (630,000, or 76%) of this rise being among people aged 50 and above.

Chancellor Jeremy Hunt has called on older workers who have left the workforce to return to employment to help tackle the soaring workplace vacancies in the UK’s labour market and the economy. His Spring Budget on March 15 is expected to announce specific policies to help tackle economic inactivity levels.

“The Chancellor is right to put improving employment for older people at the top of his budget ambitions. The exodus of 50+ workers from the workplace over the last three years has highlighted long-term weaknesses in the UK labour market that will be a major drag on UK productivity if they are allowed to continue.

“Four in ten people aged 50-70 who left work during the pandemic said they would consider returning – and many more may have been willing if the workplace was more accessible and welcoming to them.

“Movements into early retirement have unsurprisingly been concentrated among those who have private pensions wealth and secure housing. But that does not mean that all of them will be set up for a wealthy later life – the typical person age 50-64 has pension savings 58% short of what they require for the retirement they expect.

“Today’s report makes clear that making longer working lives a reality means doing much more to support people with disabilities and health conditions (long-term or temporary) to stay in the workplace. Government should be doing more to improve access to work and support for this group, including moving ahead with subsidies for SMEs to access occupational health support.

“This analysis also reminds us that there are serious concerns about the quality and accessibility of employment support for older workers. Only 1 in 10 out-of-work 50-64s access employment support services – and when they do, they experience the worst outcomes. This status quo cannot be allowed to continue – particularly in the context of a rising state pension age.

“This Budget is an opportunity for us to tackle these issues before they get any worse. We cannot write off the 140,000 workers age 50-70 who left work during the pandemic and said they would consider returning. Our work with economically inactive older workers in Greater Manchester points towards what could be possible – and provides a blueprint for the national programme of 50+ employment support that we need.

“Working into later life can bring significant wellbeing benefits that go beyond increased financial security. The presence of more older workers within workforces also brings notable benefits to the performance of organisations and businesses and will bring significant economic benefits to the country as a whole. But to achieve these benefits, we need action now.”