Closing the employment rate gap between older and younger workers could boost the UK economy by £9 billion annually.
- Analysis by the Centre for Ageing Better highlights the potential economic benefits of increasing employment rates among those aged 50-64.
- The Treasury could gain an additional £1.6 billion in tax revenues by promoting equality in the labour market.
- A 75% employment rate for individuals aged 50 to 64 by 2030 is a proposed target to achieve significant economic gains.
- Addressing ageism, lack of flexibility, and skill development opportunities are crucial for realising the potential of older workers.
In a revealing analysis, the Centre for Ageing Better suggests that narrowing the employment gap between older and younger individuals could result in a substantial £9 billion annual boost to the UK economy. This improvement is predicated on offering equal employment opportunities for older workers, a demographic often overlooked in the labour market.
Central to the analysis is the forecast that the Treasury could accrue an additional £1.6 billion per year through increased income tax and national insurance contributions, should older workers be given equitable chances to join and remain within the workforce. The necessity for enhanced employment support and flexible working conditions is underscored by these projections.
The Centre advocates for political parties to adopt the 50+ Employment Commitment, aiming to increase the employment rate of those aged 50-64 to 75% by the year 2030. Such an increase would translate to approximately half a million more individuals from this age group participating in the workforce. Several notable organisations, including Demos and Age UK, endorse this commitment.
Dr Emily Andrews, Deputy Director for Work at the Centre for Ageing Better, explains that the pandemic reversed two decades of progress in older age employment rates. The stagnation of employment for those above 50 years of age directly affects the UK economy’s growth trajectory. With an expected demographic shift, emphasising older workers’ inclusion is increasingly vital for future economic stability and prosperity.
Currently, older workers face numerous obstacles, such as ageism, inadequate health support, and limited opportunities for skill enhancement. Only by addressing these challenges can the UK fully harness the potential of its ageing workforce.
Tony Wilson, Director at the Institute for Employment Studies, points out the critical need to prioritise older workers’ employment to bolster economic and public financial health. Achieving a 75% employment rate for this demographic would align the UK with several European counterparts already meeting this target.
An urgent call is made for re-evaluating the Department for Work and Pensions’ approach to employment and benefits for older individuals, alongside enhancing support mechanisms nationwide. These measures are vital to counteract the pervasive age bias that marginalises older job seekers.
Caroline Abrahams of Age UK highlights the difficulties faced by older workers, particularly in overcoming barriers related to caregiving responsibilities, health conditions, and retraining needs. Despite their experience and skills, older individuals frequently confront age-related discrimination when seeking employment.
Prioritising and facilitating employment for older workers is essential for boosting the UK economy and ensuring public financial stability.
