Official data from the Office for National Statistics has shown that many over-50s have worked less hours since the pandemic. And, in addition, they are more likely to be made redundant - negatively affecting their employment prospects.
Of the 1.3 million people who were furloughed, more than 25 per cent were over 50 years of age, with 30 per cent of the workers on furlough of the opinion that there is a 50 per cent - or higher - chance that they will lose their job when furlough ends.
Between the months of December 2020 and February 2021, the employment rate for those aged between 50 to 64 years dropped from 72 per cent to 71 per cent and for those aged 65 years and over, it fell from 11.5 per cent to 10 per cent. Those over 50 years also saw the highest increase in redundancy over the same period - more than doubling from 4.3 to 9.7 per thousand.
One in eight employees over 50 years of age were also found to have made alternative retirement plans - with 8 per cent now expecting to retire later than originally planned.
Nye Cominetti - Senior Economist at the think tank - said:
“The cost of unemployment for older workers is particularly high. They take the longest to return to work - with fewer than two in three returning within six months - and experience the biggest earnings fall when they finally return to work. In the face of the current crisis, unemployed older workers may have to either work for longer to make up for these negative employment effects or retire earlier than they planned to.”
The Resolution Foundation has also reported that - after consistent employment growth for older workers since the mid-1990s, employment among workers aged 50 to 69 years fell by 1.4 per cent since the start of the pandemic.
Angela Watson - Age Campaign Manager at Business in the Community - said:
“It is very concerning that the number of older workers is falling after a long-term rising trend, and redundancies among people over 50 are rising too.”
She added:
“On the eve of the pandemic, over-50s in the workplace were at an all-time high. But now the trend has reversed and, with large numbers of older workers on furlough, more over-50s face redundancy when that ends. But this talent doesn’t need to be wasted and creating an age-inclusive culture is the key to make sure that everyone can feel included at work. Many of the one in seven employees who are caring for an older, ill or disabled person are older workers, and businesses need to offer flexible working patterns. They also need to support the health needs of older employees, such as menopause, help people of all ages develop their careers, and make sure their recruitment policies are fair and not biased against older candidates. By taking these steps, businesses will create an inclusive culture and ensure that age doesn’t limit a person’s success.”
Emily Andrews - Senior Evidence Manager at the Centre for Ageing Better - also warned that the pandemic could cause people to drop out of the labour market early, saying:
“Working life does not stop at 55. As this recession unfolds, we need a strong message from the government and employers that older workers have just as much right to a job as younger ones. It's also important to remember that when the furlough scheme ends, many employees may not have worked for 18 months or more - and whether they are facing job losses, a change of industry or a return to work, many will need flexible retraining opportunities.”
