- 516,237 over 50s have left the workforce in the past two years and are now classed as economically inactive. 207,012 are aged 50-64 and 309,225 are aged 65+. The total number of economically inactive over 50s is now 14.37m
- There are 354,566 over 50s who are currently unemployed, of which 321,965 are aged 50-64 and 32,601 are 65+. This is an increase of 82,401, or 30% from two years ago
- There were 543,700 over 50s still on furlough at the end of July (reported in the latest government release issued on 9 September) of which 454,900 were aged 50-64 and 88,800 were aged 65+
On the eve of the furlough scheme drawing to a close after a year and a half of supporting wages for UK workers, there are significant concerns about the 543,700 over 50s still on the furlough scheme (according to data from HMRC issued on 9 September which reports on figures up to the end of July).
People aged 50 and older on furlough at the end of July account for 35% of the total number of people still on furlough (Table 1) – a figure which has steadily increased from 27% in January this year (Chart 1), according to Rest Less, a digital community and advocate for people in their 50s and 60s and beyond.
Stuart Lewis, Founder of Rest Less, commented: “The pandemic has wreaked havoc on the job prospects of many in their 50s and 60s but we fear the full impact is yet to be felt. With more than half a million people aged 50 or older still on furlough at the last count, we may well see hundreds of thousands of hard working, experienced older workers enter redundancy and ultimately find themselves looking for a new job in the run up to Christmas.
‘The jobs market is polarised at the moment. On the one hand, we have record job vacancies and companies struggling to hire talent in key areas – for example HGV drivers and healthcare. On the other side, unemployment levels across many age groups have yet to recover and we are seeing huge falls in economic activity amongst midlifers. Much more can be done to help bridge these gaps through intensive retraining and accelerated assessment programmes.”
The pandemic has devastated the job market for older workers over the past two years, reversing long-term trends which have seen the over 50s drive the vast majority of employment growth over recent decades. In the past two years, unemployment and economic inactivity have risen significantly amongst the over 50s (Table 2a and 2b).
Focusing on those aged between 50 and 64 – while employment levels are close to their pre-pandemic levels, there are 321,965 50-64 year olds unemployed right now – 25% more than than two years ago – and an additional 207,012 economically inactive individuals (i.e. they are no longer actively seeking employment) – 6.4% higher than two years ago before the pandemic (Table 2a). Significant concerns remain for the additional 454,900 50-64 year olds on furlough at the end of July.
Stuart Lewis added: “The loss of any large proportion of society from the workforce is cause for significant concern, and risks holding back the economic recovery for all. Whilst for some workers aged 50 and older, economic inactivity is a choice and a planned exit from the workforce, many others are finding themselves faced with an early retirement they are neither financially or emotionally prepared for.
Case studies available on request
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Notes to Editors
*This is based on provisional CJRS data for July 2021 which is the most up to date government data on furlough and can be found here and Labour Force Survey data from the Office of National Statistics which can be found here.
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Aisling Gray
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About Rest Less
Rest Less (restless.co.uk) launched in early 2019 and is a digital community and advocate for people in their 50s, 60s and beyond. Rest Less is on a mission to help its members get more out of life and offers content, guidance and resources on topics spanning Jobs and Careers, Volunteering, Learning, Money, Health and Lifestyle.