The disappearance of 565,000 mostly older people from the UK’s labour force was one of the problematic effects of Covid. For most people, work is one of the things that gives their lives shape and meaning – as well as providing them with an income. For such a large number of older people not to need to work also points to rising generational inequality. In other countries, employment levels recovered more quickly to pre-2020 levels, making the UK an outlier. But while evidence in the past few months points to a reversal of this trend – and the rise of “unretirement” – there is no room for complacency.
Government initiatives aimed at addressing the issue have achieved little. In March, the Treasury came up with the idea of “returnerships” – a variant on apprenticeships aimed at coaxing mature people back to workplaces. But in reality this did not amount to much more than a new label for existing training. Meanwhile, fewer than one in 20 of participants in the government’s “skills bootcamps” – employer-led short courses aimed at equipping jobseekers for the opportunities in their area – are aged over 55.
Earlier this month, Mel Stride, the work and pensions secretary, championed the idea of over-50s delivering takeaways, and doing other jobs more readily associated with younger workers. But while age should not be a barrier to anyone willing and able to do this kind of work, ministerial ambitions for older workers should be broader. Crucially, they should extend beyond low-wage private sector vacancies to labour shortages in health, education and social care – where recruitment and retention problems are acute and linked to low pay levels and workload pressures. One 57-year-old Deliveroo driver interviewed by the Guardian said that he was underpaid and “shattered” by his experiences.
The overall picture is complex. Initially it was thought that a substantial number of 50-plus people had stopped work voluntarily – albeit with anxieties about Covid-19 contributing to their decisions. Many of those aged over 60 who described themselves as economically inactive – neither working nor seeking work – owned their homes outright, and thought they could live comfortably on pensions or other savings. But research also revealed that a substantial number of those who gave up work during the pandemic were hard-up as a result, with reduced expenditure on food and lower wellbeing. Meanwhile, one survey found that a fifth of economically inactive 50- to 64-year-olds were waiting for NHS treatment – evidence of the social and economic damage caused by the vast waiting list for treatment. As well as queues for operations such as hip replacements, economic inactivity is linked to the rising toll of chronic mental and physical illness.
Descriptions of returning to employment are also highly variable. Some did so because they were struggling with the rising cost of living. Others found that they missed the company of co-workers, wanted to make a contribution to family finances or needed “a purpose in life”.
The 26.5% of adults aged 50 to 64 who are economically inactive is still too high. Rising employment levels can be seen as part of a delayed return to normality. But the coexistence of high levels of economic inactivity with key worker shortages in vital areas such as teaching remains hugely problematic, and should be addressed by return-to-work policies.
