Older workers still locked out from employment three years on from pandemic

The UK labour market remains unfavourable to older workers with employment rates continuing to be significantly below levels seen prior to the economic turmoil of COVID-19, latest ONS statistics show.

Labour market stats released this morning show that the economic inactivity rate for 50-64 year olds is 1.3 percentage points higher than it was around three years ago (Dec-Feb 2020), just before the pandemic started.

There are over 244,000 more workers aged 50-64 who are economically inactive for the period December to February 2023 than before the pandemic, according to the new data.

Ageing Better is calling on the government and employers to make more concerted efforts to improve job flexibility, training and employment support for older workers in order to finally shake off COVID’s malign impact which has persisted for considerably longer than other age groups.

The employment rate for 50-64 year-olds now stands at 71.3% compared to 72.6% before the pandemic.

The employment gap between people aged 35-49s and those aged 50-64s remains wider than before the pandemic and now stands at 14.6 percentage points – 1.4 percentage points higher than at the start of 2020.

“For years prior to the pandemic, employment rates for older workers grew and grew. The COVID-19 pandemic stopped that progress in its tracks and the latest labour market stats show this is not a temporary blip that will resolve itself. Three years on and the impact is still being felt.

“And thanks to the latest IFS report, we know that many of these older workers are not basking in a carefree retirement but are shut out from the labour market and struggling to get by.

“Without concerted efforts to create more opportunities with the flexibility and inclusivity that many in their 50s and 60 need to return to work, we will not restore pre-pandemic employment levels – which will be to the detriment of employers desperately struggling to fill labour and skills shortages, to the detriment of individuals missing out on all the benefits work has to offer and to the detriment of the UK economy."