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Age discriminationEquality, diversity and inclusion

UK lags behind in employment of older workers

by Jo Faragher 20 Jun 2017
by Jo Faragher 20 Jun 2017 br >Pavel Svoboda Photography / Shutterstock.com
br >Pavel Svoboda Photography / Shutterstock.com

The UK ranks 19th out of 34 countries in terms of its employment rate of older workers, according to PwC’s Golden Age Index.

It lags behind Iceland, which tops the table, followed by New Zealand, Israel and Sweden, according to the consulting company’s annual index, based on a weighted average of indicators including employment, earnings, and training among the over 55s.

PwC estimates that the UK could boost its GDP by around 4.2% (or around £80 billion at today’s values) if its employment rate of workers over 55 could match that of Sweden, the highest performing EU country.

This year’s index aggregates data from OECD countries from 2015, the most recent data available.

The UK has fallen a further place down the list since 2014, when it ranked 18th, and two places since 2013.

PwC estimates that if OECD employers as a whole employed more older workers, this could boost GDP across the economic group by around $2 trillion in the long term.

Within the UK, England has the highest employment rate for 50 to 64-year-olds, at 70.6%, and south-east England is even higher, at 74.5%.

Scotland’s employment rate for the over-50s is 68.8%, Wales is 66.5% and Northern Ireland is 63.6%.

Across the UK, older female workers have a lower employment rate than their male counterparts, at 64.9% for 50-64 year olds compared to 75.4% for males.

John Hawksworth, PwC’s chief economist, said: “While the UK’s absolute performance on our Golden Age Index has improved over time, it’s still scoring below the OECD average.

“As the number of people over 55 continues to grow steadily and life expectancy increases, the UK needs to make it as easy as possible for people to continue working for longer if they wish to do so. This would boost both GDP and tax revenues, so helping to pay for the increased health, social care and pension costs of an ageing population.

“Looking at employment rates for older workers across the UK reveals the areas that need the most focus, as well as symptoms of poor performance. Regions with fewer older workers with university degrees and a larger gap between male and female employment tend to have the lowest employment rates for older workers.”

He added that recent calls by the Government’s new business champion for older workers, Andy Briggs, to increase the number of older people in the UK workforce by 1 million, was “a step in the right direction, but more needs to be done”.

Carol Stubbings, global people and organisation leader at PwC, urged employers to look at flexible working and partial retirement options as a way of keeping older employees engaged.

She said: “Flexible working policies can incentivise women to remain in work longer, so having the right policies in place will increase the employment rate of those over 55 and may help to reduce the gender pay gap which is shown to increase with age.

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“The life experience of older workers and the skills they have acquired throughout their career make them hugely valuable to the modern workforce. To build on this leading employers will offer older workers opportunities for development, including reverse mentoring schemes on digital skills and apprenticeships.”

Bottom of PwC’s index is Turkey, which has fallen 12 places since 2003.

Jo Faragher

Jo Faragher has been an employment and business journalist for 20 years. She regularly contributes to Personnel Today and writes features for a number of national business and membership magazines. Jo is also the author of 'Good Work, Great Technology', published in 2022 by Clink Street Publishing, charting the relationship between effective workplace technology and productive and happy employees. She won the Willis Towers Watson HR journalist of the year award in 2015 and has been highly commended twice.

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4 comments

Richard Knight 20 Jun 2017 - 4:20 pm

We are working hard to get all ages into work via a flexible manual labour platform that allows folk of all ages to participate in projects on terms that suit them.
There’s no reason why the over 55’s can’t still carry out manual projects they’ve just got to be put in touch with the right opportunities.

Linda 20 Jun 2017 - 4:57 pm

I am 58 and have applied for more than 450 roles ranging from administrator, office manager, hr assistant/administrator/officer/adviser/coordinator/manager. I have registered with 36 agencies and i have had 26 interviews so far! unfortunately, i am too nice, i am not a good fit for the business, other roles were put on hold and the rest didn’t bother to return my call for feedback.

I have actually had an agency that asked, after i had gone through my experience etc., “what year did you leave school!” Then very diplomatically, once i gave my response never called again and couldn’t get off if the phone quick enough! Plus he wasn’t the first.

I lost my last role after being forced to attend jury service and after training others to execute parts of my role in my absence and on my first day back from Court, 7 months later they hired a graduate!

I have depleted my life savings due to not being entitled to receive job seekers allowance or travel support because i am married and i apparently have not made enough contributions that meet their criteria.

It costs me £10 every time i attend an interview with a useless agency or interview with an prospective employer.

I have always been extremely fair whilst recruiting for positions ranging from cleaners, operatives, builders, engineers, HCA’s nurses, GP’s, medical/clinical consultants, admin staff, technical staff in all sectors and FD’s. I have always judged people by their ability to perform a role rather than to hire people selected for their looks, age, gender or authenticity so this has been a bitter pill to swallow.

I am depressed and don’t know what the future holds that’s the end if the line i think!

J Rowney 22 Jun 2017 - 8:50 am

Hi Linda

Don’t give up – I was in the same position and thoroughly agree with your comments about agencies. They are staffed by young people on the whole and the same culture seems to pervade them all. But applying directly to companies may be a better option, as some actually value experience. I wish you a lot of luck.

Malcolm Smith 2 Jul 2017 - 9:43 am

I agree after spending 15 years supporting those unemployed aged 50+ int sustaianable employment that there is still a long way to go. Andy Briggs with the help of Business in the Community and AVIVA is going the right way by making this subject a public discussion. Let;s support their efforts and get the UK up the league on employing Older Workers.

Comments are closed.

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