Labour market figures released today reveal a difficult environment for workers aged 50-64 with more than one in four of the age group out of the workforce.
There are 3.5 million people in this age group who are economically inactive, about 250,000 more than before the pandemic. The inactivity rate at 26.7% is still elevated compared to before the pandemic.
Stephen Lowe, group communications director at retirement specialist Just Group commented: “This is a tough time for older people in the jobs market. In the last five years we have seen the number of employed people aged 50-64 rise by just 250,000 compared to a rise of 1.2 million in the five years prior to that. There are now 250,000 more economically inactive than five years ago, compared to a fall in inactivity over the previous five years of more than 100,000.
“It is worrying that the job market for this age group is not improving more quickly. These are some of the most experienced and knowledgeable workers needed to help the economy grow.”
He said that a survey by Just Group of 1,000 retired and semi-retired people aged 55+ found that nearly half (45%) said they had retired earlier than they had expected, often due to factors beyond their control such as ill health, redundancy or to provide care for a family member.
“Early retirement is not necessarily a lifestyle choice and it can have huge ramifications for people’s finances in later life,” said Stephen Lowe. “We would like to see the government look closely at this sector of the market to ensure that those who want to work have the support and opportunity to get back into productive jobs.”
