A false dawn for older workers

Expectations are high how the new Government will tackle  problems facing  older workers. Labour’s employment manifesto failed to outline policies, and older workers didn’t become an election issue.

On the positive side the manifesto did highlight a grey haired suited sixty-two-year-old man successfully furthering his career, with thirty-three glossy photographs plastered throughout. The subliminal message must be older workers, or at least male workers, count !

Ahead of the election the Centre for Ageing Better boldly trotted out that closing the employment gap for those in their 50s with other age groups would increase GDP by £9 billion, boost income tax and NICs revenue by £1.6 billion. These sums look economically convincing, so surely will be followed by Chancellor Rachel Reeves in her first budget on the 30 October.

But Labour’s first sixty days  hasn’t specifically addressed older workers – instead, the Winter Fuel Payment saga dominates. The Reeves meta narrative is trust the “national mission” to raise economic growth. Liz Kendall, Secretary of State for Work and Pensions, in numerous photo visits to Job Centres also argues “economic inactivity” is holding Britain back, pledging government will boost employment rate to 80 percent and increase the workforce by 2 million much needed workers. And a Youth Guarantee for 18–21-year-olds to prevent exclusion from work.

But it's highly notable that 40 percent of “economic inactive” people are in their 50s or older, many having health conditions. Rightly the government is trying to address health barriers, with the official message that the DWP is being transformed from "a department for welfare to a department for work". Included in a raft of measures is new national jobs and career service to boost employment rates, as well as launching work, health and skills plans for those economically inactive, to be spearheaded by Mayors and local areas. Look out what happens in London.

Yet wind back ten years ago to the heady days of Liz Kendall’s speech at the TUC Conference. Her message was “Labour will stand firmly on the side of older workers” and “if we’re going to enable people to work for longer, major issues must be addressed including skills and training for older workers, tackling stereotypes and addressing health and care needs.” Even bolder she pronounced, “The next Labour Government will stand firmly on the side of older workers, as we build a modern economy that draws on the talents of all our people and ensures everyone shares fairly in growing prosperity.”

What’s clear is over 50s have not recovered in labour market terms since Covid and their employment not back to pre-pandemic levels compared with other countries. And inactivity due to ill health for older workers remains at near record levels not helping the economy.

This points to the urgency for a more strategic approach from government to older workers and an ageing workforce with a new agenda. Fundamental is a variegated approach to “older workers,” recognising different needs with bespoke policy options -  avoiding lumping them together.

Older workers are often depicted in three segments. First the officially problematic “economic inactive over 50s”, who suffer from ill health and despite official support are at a distance from the labour market with prospects of never working again. A second segment attracting attention are those in low wage jobs, very often marginalised in the job market, cannot afford to retire, suffer from ill health, and thus are financially insecure. Both these segments are likely to suffer from poverty risks in the future. Then there are those in middle incomes and wealthier. Some possessed the resources to retire post covid invoking much ire from the Bank of England and other commentators. But others working above 50  want, or increasingly need, to continue working but still face stiff challenges.

So, a new agenda first requires providing  the right support to older workers, particularly the unemployed and the precariat. All the evidence points to targeted support rather than generic off the shelf employment support lumping age groups together. The Charity Wise Age is working with the Greater London Authority on piloting a localised programme of holistic support for older unemployed workers involving  policy makers and employers.

Second, employers need to be better prepared for an ageing workforce. Lofty longevity pundits prescribe future economic requirements, but these words waft over the heads of busy quotidian policy makers. Research from Brave Starts/ProAge shows employers think it’s important to  prepare for an older workforce but there’s a disconnect in them dealing with immediate issues. Challenges are creating age friendly jobs and actively recruiting more older workers. Plus, a stronger focus on hiring , training, and retaining over 50s and ensuring workplaces are multi-generational. There’s much talk and good examples yet it doesn’t really count in big policy terms.

Third challenging ageism – still the  “elephant in the room” for older workers. Apart from very blatant forms of age discrimination which can get called out, many older workers face ageist challenges at that stage of their career particularly rife in some sectors. And  it’s difficult for older workers to assess fairness and age friendliness in for example job hiring, retention and training as we don’t have published standard metrics.

So, the big question is this a false dawn for  older workers – sounding promising but with little effect ? Or should we stoically temper expectations and hope older worker policy actions arrive when growth is achieved. Or is this just a lost opportunity – with government not strategically seeing the significance of an ageing workforce.

Meanwhile back to the many photos of Keir Starmer. At the next election he will be a sprightly 67 so may well want a second term or more and he’s not even at the age of French PM Michel Barnier. But the stats don’t bode well – currently 11 per cent of over 65s are in employment. As Labour’s poster boy it may be incumbent for him to concentrate more on older workers.

Tim Whitaker is an older age employment consultant and Trustee of Wise Age