The Centre for Ageing Better highlights the economic potential of employing older workers.
- Closing the employment rate gap can inject £9 billion into the UK economy annually.
- Increasing older worker employment can add £1.6 billion to the Treasury in taxes.
- The 50+ Employment Commitment seeks a 75% employment rate for 50-64 age group by 2030.
- Barriers like ageism and lack of flexible work hinder older workers.
A new analysis by the Centre for Ageing Better indicates significant economic benefits if the UK closes the employment rate gap between older and younger workers. By providing equal opportunities in the labour market for older workers, particularly those aged 50 to 64, the economy could see an annual boost of up to £9 billion.
The report forecasts that, alongside economic growth, the Treasury could gain an additional £1.6 billion annually in income tax and national insurance contributions. This economic gain highlights the necessity of integrating older workers into the workforce effectively and equitably.
The Centre for Ageing Better urges political parties to adopt the 50+ Employment Commitment, targeting a 75% employment rate for those aged 50-64 by 2030. Achieving this goal would mean bringing approximately half a million more older individuals into the labour force, an essential step as the UK anticipates demographic shifts in the coming years.
Supporters of this commitment, including notable organisations such as Demos and Age UK, stress that ageism, inadequate flexible working options, and insufficient health and skill development support are significant barriers for older workers. Such factors limit their potential and contribution to the economy.
Dr Emily Andrews from the Centre for Ageing Better notes that the pandemic disrupted two decades of progress in older worker employment rates. As the number of people aged 50-64 grows, it is imperative to revitalize efforts to include them in the workforce. “The future of UK growth and productivity depends on mobilising the 50+ workforce,” she asserts. This is not about preferential treatment but ensuring fairness and equal opportunity.
The 50+ Employment Commitment outlines key strategies, including improving employment support equality for older workers and expanding opportunities for skill development. Additionally, it recommends comprehensive reviews of employment policies, particularly before the State Pension Age increases in 2026.
Tony Wilson of the Institute for Employment Studies emphasizes this issue as critical for both economic strength and poverty reduction. The UK currently lags behind other European nations in older worker employment, and meeting the 75% target is crucial for alignment with other countries.
In closing, Caroline Abrahams of Age UK highlights the underutilization of older workers’ expertise and the need for immediate governmental action to facilitate their continued or new employment. Without such initiatives, significant talent will remain untapped, a detriment to both individuals and the nation.
Addressing employment barriers for older workers is crucial for economic and social benefits.
