The rise of the older worker
12 Dec 2012
There are more people working in the UK today than at anytime in our history. Today's labour market statistics show another increase in the numbers employed taking the total to 29,600,000, up 40,000 on the previous quarter and 500,000 on a year ago.
Almost half of the rise has been among people aged 50 or over, with the fastest rate of increase occurring among those 65 or over, particularly among older women.
There are now almost a million people aged 65 or over in jobs, double the number ten years ago and up 13 per cent over the past year. Although these older workers comprise only three percent of the working population, they account for 20 per cent of the recent growth in employment. However this group has a very different labour market profile to the rest of the working population, particularly younger people, and there is no evidence to suggest older workers are gaining employment at the expense of the young generation. For example:
- 30 per cent of older workers (ie aged 65+) work in managerial and professional jobs, compared with only nine per cent of younger workers (aged 16 to 24). Conversely 34 per cent of young people work in sales, care and leisure jobs, compared with only 14 of their older counterparts.
- Nearly four in ten older workers are self-employed, compared with five per cent of younger workers.
- Most (69 per cent) of 65 plus year olds work part-time, compared with 39 per cent of young workers (and 27 per cent of all those in work).
Jim Hillage, Director of Research at the Institute for Employment Studies, explains that:
‘There are a number of reasons why older workers are staying on in work. In some cases employers want to retain their skills and experience and encourage them to stay on, albeit on a part-time basis, and most older employees have been working for their employer for at least ten years and often in smaller workplaces. Conversely, some older people have to stay in work as their pensions are inadequate and it is interesting to note that employment of older workers is highest in London and the South East, where living costs are highest. Finally, there is also a growing group of self-employed who still want to retain their work connections and interests.’
About the Institute for Employment Studies
The Institute for Employment Studies is the UK's leading independent, not-for-profit centre for research and evidence-based consultancy on employment, the labour market, and HR policy and practice.