Around 15 per cent of the 50- to 64-year-old economically inactive population have stated a desire for full- or part-time job despite not actively looking for work, according to new research.
According to recent labour market data, over half a million older people who are economically inactive and express a desire for employment—about 15 per cent of the total—represent a pool.
Economic inactivity among older workers aged 50-64 has risen by 298,000 three years after the pandemic, pushing the total number of economically inactive in this age group to over 3.5 million.
Women are disproportionately affected, with 155,000 leaving the workforce compared to 144,000 men.
According to the research, there are many factors, such as health concerns and early retirement, that contribute to the rise in economic inactivity among older employees. To support older employees in the labour market, policies such as flexible work schedules, skill development, and age-inclusive hiring practices are required.
The study finds that leveraging older workers’ knowledge and expertise can increase workforce diversity and productivity while fostering older people’s social and economic inclusion.
Just Group group communications director at retirement specialist Stephen Lowe says: “In the three years since the outbreak of the pandemic the number of economically inactive older workers has surged. The declining health of the nation appears to have been a major factor with ill-health pushing significant numbers out of the workforce. For many others, the pandemic and the way it enforced leisure time through furlough became the trigger for them to retire early.
“Today the economic landscape is decidedly trickier for people. Market volatility has negatively affected the value of many defined contribution pensions and the cost of living has put incomes under pressure. The steep rise in interest rates is slowing the boom in property prices – often a barometer of how ‘wealthy’ people feel.
“It’s no wonder that a significant proportion of older people who are currently out of the labour market say that they would like a job. With many businesses suffering from a shortage of workers, it begs the question why these experienced employees are still out of the labour market?
“Older workers bring a lifetime of experience and expertise so employers need to think carefully about how they can best attract and retain this talent.”