According to a new report, older workers are faced with a lottery of employment opportunities in England.
Centre for Ageing Better research found major regional inequalities. The South East had one million more employees aged 50-64 than the North East, and three times the number of them.
The report, State of Ageing 2025, highlighted the fact that the South East economy benefits from an “older workers bonus” of PS80 billion.
The analysis of the charity revealed that the disparity in employment rates between individuals aged 50-64 in different parts of the country is a major contributor. 75% in the South East are employed compared to only 66% in North West.
The Centre for Ageing Better says that the figures show the need for an approach targeted at specific markets, and for tailored employment support for people aged 50+.
Dr Carole Easton is the chief executive of the Centre for Ageing Better. She said that where you live in this country has a great impact on your life opportunities, especially if you’re in your 50s or 60s.
The odds of older workers being discriminated against in a market that is ageist can be exacerbated by the local market in which you are looking for employment.
She said that regional inequalities, when combined with other factors like poverty, poor health or disability, made it very difficult for people in their 50s to 60s to find work.
Easton stated that the result of this is a negative impact on an individual’s mental and physical health, as well as their financial situation and ability to save money for retirement.
She says that local authorities have the best understanding of local labour markets and believes that combined authorities with regional mayors can “empower older workers to reach their full potential and benefit the local economy”.
Easton said: “Traditional support for employment has not been particularly effective in helping people who are 50 and 60 years old.” Employer support tailored to local labor markets and focusing on the needs for people in this group would be so much more effective.
The report will be released on Wednesday, 26 March. It also revealed that 50% of those who are out of work due to illness live in the North West, while only 33% of those in the South West.
Unemployment is defined as the inability to find work and the desire to do so. Nearly nine percent (9%) of individuals between 50 and 65 years old in the South East fall into this category.
In the United States, only 6% of individuals who are out of work in this age group are considered unemployed. The majority are classified as economically inactive because they are not actively looking for a job or able to work.
The overall employment rate of those aged 50-65 is 69%. This rate is significantly lower than the 85% for individuals aged between 35 and 49.
In the North East there is a significant disparity between employment rates, with a difference of 19,8 percentage points. London has likewise a 19.1 percentage point gap. The age penalty in the North West (11.6%) and South East (13.9%) is lower.
In the North East region, disabled people aged 50-65 are twice as likely to be unemployed than their non-disabled peers. In the North East, only 37% of people with disabilities in this age range are employed compared to 79% for non-disabled people – a 42-point difference. The South West has the highest employment rate of disabled people aged between 50 and 65, at 53%. This is 16 points higher than the North East.
Dr Emily Andrews is the deputy director for Work at Centre for Ageing Better. She said, “Our State of Ageing Report highlights two reasons why we need to reconsider our approach to older workers.” The government’s goal of an overall employment rate at 80% is not achievable by two groups: those under the age of 25 and those over 55.
She said that the government had set specific plans for improving the employment rate of under-25s, but not those over 55. And that it would not meet this target until they did.
The government hasn’t caught up with the changes in work later in life. Retirement used to be a “cliff-edge” transition, with people going from full-time employment straight into no work. Transitions have become more complex and diverse. This is a major change which needs to be taken into account,” said Andrews.
The government should review its policy for those in their 60s before making any changes to the age of state pension. This will help the policy reflect the changing needs of the population.
The Centre for Ageing Better urges the UK government provide additional financial support for individuals who are nearing state retirement age but are unable or unwilling to work. They also call for tailored employment assistance for those who have reached state pension age and wish to continue working.
This proposal is part of a wider review of the Government’s strategy for those in their 60s, which acknowledges the significant changes in retirement patterns in the past two decades.
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