Editorial: Harnessing the Potential of Older Workers to Address Labour Shortages

The disappearance of 565,000 individuals, primarily older adults, from the UK’s workforce during the COVID-19 pandemic presented a significant challenge. Work not only provides income but also shapes and gives meaning to people’s lives. The fact that such a large number of older individuals no longer needed to work highlights the growing generational inequality in the country. In contrast to other countries that witnessed a quicker recovery in employment levels, the UK stands as an outlier in this regard. However, recent evidence suggests a reversal of this trend with the emergence of “unretirement,” but we should remain cautious and not become complacent.

Government initiatives aimed at addressing this issue have yielded limited results. The Treasury introduced the concept of “returnerships” in March, which was essentially a rebranded version of existing training programs targeting mature individuals. Additionally, the government’s “skills bootcamps,” designed to equip jobseekers with the necessary skills for local opportunities, saw participation rates of individuals aged over 55 fall below 5%. These initiatives have not effectively attracted older workers back into the workforce.

Recently, the work and pensions secretary, Mel Stride, proposed the idea of over-50s taking on roles typically associated with younger workers, such as delivering takeaways. While age should not limit anyone’s ability to engage in such work, the government’s ambitions for older workers should extend beyond low-wage private sector jobs. It is crucial to address labor shortages in essential sectors like health, education, and social care, where recruitment and retention challenges are prevalent due to low pay levels and excessive workloads. An interview with a 57-year-old Deliveroo driver revealed issues of underpayment and exhaustion.

The situation surrounding older workers is complex. Initially, it was believed that a significant number of individuals aged 50 and above voluntarily left work due to concerns about COVID-19. Many economically inactive individuals, particularly those over 60, owned their homes outright and believed they could comfortably sustain themselves with pensions or savings. However, further research indicated that a substantial portion of those who left the workforce during the pandemic faced financial difficulties, resulting in reduced food consumption and diminished well-being. Additionally, a survey showed that one-fifth of economically inactive individuals aged 50 to 64 were waiting for NHS treatment, highlighting the social and economic consequences of excessive waiting times. Economic inactivity is also associated with an increasing burden of chronic mental and physical illnesses.

The motivations for returning to employment vary greatly. Some individuals did so due to the rising cost of living, while others missed the social interaction provided by co-workers, wanted to contribute to family finances, or simply desired a sense of purpose in life.

The current rate of economic inactivity among adults aged 50 to 64, at 26.5%, remains too high. The gradual increase in employment levels can be perceived as a step towards returning to normalcy. However, the coexistence of high levels of economic inactivity with shortages of key workers, particularly in crucial sectors like education, poses significant challenges that need to be addressed through effective return-to-work policies.