In today’s rapidly evolving economic landscape, leveraging the potential of every demographic is crucial. Led by the Centre for Ageing Better, The 50+ Employment Commitment seeks to address the employment challenges faced by individuals aged 50 and above in the UK, aiming to raise their employment rate to 75% by 2030. This initiative is not only a matter of social equity but also an economic imperative, with the potential to increase the UK’s GDP by £9 billion and tax revenues by £1.6 billion annually.
The Current Landscape
The COVID-19 pandemic has significantly impacted employment rates, particularly among older age groups. While employment rates for those aged 35-49 have rebounded, those for the 50-64 demographic lag behind, with a current employment gap of 14 percentage points (85% vs 71%). Addressing this disparity is critical, especially as the State Pension Age rises to 67, ensuring no segment of the workforce is left behind.
Major Challenges
Older workers face a unique set of challenges, including:
- Practical Barriers: Issues such as caregiving responsibilities and health conditions, which peak between ages 55-64, significantly impact employment.
- Attitudinal Barriers: Ageism and age bias are prevalent, with one in three workers aged 50-70 experiencing age discrimination during job searches post-pandemic.
These barriers contribute to long-term unemployment and lower engagement in back-to-work support for older adults, ultimately affecting economic productivity and personal well-being.
The Six Pillars of the 50+ Employment Commitment
To achieve the proposed target, the commitment outlines six key pillars:
- Enhanced Employment Support: Improve the performance of employment support services for those aged 50-66, ensuring they match the support levels received by younger age groups.
- Increased Investment: Allocate targeted support and resources to help older individuals re-enter the workforce, including extending the 50 Plus champions program and integrating local community activities.
- Employer Awareness Campaigns: Launch government-backed campaigns to educate employers on the benefits of hiring and retaining older workers, focusing on flexible working, career development, and combating ageist cultures.
- Upskilling and Reskilling Opportunities: Expand mid-life review pilots and create more training opportunities to help older workers stay competitive and adapt to new career paths.
- Legislative Changes for Caregivers: Introduce paid and extended unpaid carer’s leave and establish a default right to flexible work from day one, supporting those balancing work with caregiving responsibilities.
- Review of Employment and Benefits Approach: Conduct a comprehensive review of the Department for Work and Pensions’ strategies for supporting individuals in their 60s, considering both enhanced financial support and access to employment assistance for those who choose to work beyond the State Pension Age.
The Path Forward
Implementing these measures will not only enhance the economic contributions of older workers but also improve their quality of life, addressing the highest poverty rates among those aged 60-65. This holistic approach to employment and benefits will ensure that as the nature of retirement evolves, the workforce remains inclusive and dynamic.
By committing to these targets and embracing the value of an experienced workforce, the UK can foster a more robust and inclusive economy, paving the way for a better future for all generations.