Government could boost UK economy by £9 billion annually by addressing age inequality in the workforce.
- Empowering older workers could add £1.6 billion in tax revenues per year according to new analysis.
- The 50+ Employment Commitment urges parties to increase employment rates among older citizens.
- Key challenges include addressing ageism, lack of flexibility, and health support in workplaces.
- Achieving a 75% employment rate is vital for future economic stability and growth in the UK.
Empowering older workers could potentially boost the UK economy by an impressive £9 billion annually, according to recent analysis by the Centre for Ageing Better. The disparity in employment rates between older and younger workers costs the Treasury significant revenue, which could be rectified by equal labor market opportunities. Closing this gap is projected to provide an additional £1.6 billion per year through income tax and national insurance contributions.
The Centre for Ageing Better advocates for a commitment to elevate employment rates for individuals aged 50 to 64 to 75% by 2030. This initiative has garnered support from various organizations including Demos and Age UK. Such a target is predicted to integrate approximately half a million older individuals into the labor market.
A primary concern is the persistence of ageism and age bias, which limits the potential of older workers. Furthermore, a lack of flexible working options and insufficient health support exacerbate these issues, along with limited avenues for skills development and inadequate employment support. These barriers deny many older workers the ability to fully contribute to the economy.
Dr. Emily Andrews from the Centre for Ageing Better emphasized the stagnation of older age group employment rates post-pandemic. She stated, “If employment opportunities stagnate after 50, so too will the UK economy.” The data suggests that a 75% employment rate target is possible but requires ongoing government commitment. By 2030, the UK’s demographic shift highlights the need for older workforce mobilization to ensure sustained economic growth.
It’s crucial to provide fairness and equal opportunity, as opposed to special treatment, for older workers striving to remain or re-enter the workforce. This approach benefits not just the workers themselves but employers and the economy as a whole. The upcoming increase in the State Pension Age to 67 underscores the urgency of reviving labor market momentum to avoid leaving segments of the workforce behind.
The 50+ Employment Commitment outlines steps for political parties to consider, including enhanced employment support for the older workforce, increased investment in skill development, and employment benefits reviews prior to State Pension Age adjustments. There is also a call for improved legislation around flexible working and support for carers, alongside campaigns to promote the value of experienced workers.
Tony Wilson from the Institute for Employment Studies highlighted the halt in employment growth among older demographics, stressing that this issue must become a priority for forthcoming administrations. He stated, “Helping more older people into work and to stay in work is going to be key to supporting a stronger economy, better public finances, and fewer people in poverty.” The ambition is to elevate the UK from its current ranking in Europe regarding older worker employment rates.
The employment gap stands at 14 percentage points, with older workers facing nearly double the risk of long-term unemployment compared to their younger counterparts. Alarmingly, a significant number of older individuals who left the workforce during the pandemic experience age discrimination. Without thorough engagement and support systems, these factors collectively hinder the chances for this age group to contribute effectively to the economy.
Addressing the employment gap for older workers is essential for economic vitality and fairness in the UK labor market.
