London's Older Workers

LONDON'S OLDER WORKERS DESERVE A BETTER DEBATE… AND ACTION

So, last week the Governor of the Bank of England is claiming economic inactivity,  particularly in early retirees, is creating inflation and putting undue pressure on interest rates. Worse, those early retirees are spending too much time on cruises and in golf club shops, so reducing the supply of labour by exiting work.

Inevitably well evidenced speeches like this from economic grandees, create good headlines and we now have the image of our economy being trashed by the selfish activities of early affluent retirees.

But this just adds to a dangerous and misleading narrative. Despite greater media attention on the “older worker problem“, we’re still not unpacking the problems nor getting the right policies.  

Nowhere is this more important than in London where addressing employment problems of older workers languishes not only behind other age groups, but also other more imaginative cities such as Manchester.

So, we urgently need a new narrative recognising the financial hardship of many older workers in London and barriers they face caused by disadvantage. 

Despite London being a rich city, older workers employment is rather complicated.

On the downside, London’s overall unemployment rate is one of the highest - though for older workers this has declined apart from the long term unemployed. Economic inactivity though is above average – note 30 per cent of all Londoners are economically inactive. Yet the reasons for economic inactivity aren’t just retirement, but also health problems and caring responsibilities. 

But the “older worker” category conceals the massive disadvantages in work, based on ethnicity, gender and being disabled. Add to this the high number of precarious jobs occupied by London’s older workers – in turn linked  to precarious households and homes. And almost a fifth of older workers are  earning less than the Living Wage according to the Living wage Foundation (London’s low pay landscape 2023.pdf (livingwage.org.uk).

The biggest problem is growing poverty - at 25 per cent, poverty levels among older Londoners are the highest in the country. The Trust for London’s  new Poverty Tracker (London's Cost of Living Tracker | Trust for London)  reveals the shocking increase in cost of living being faced by older Londoners.  

Low quality and low paid jobs of older workers don’t cope with rising cost of living and risk fuelling future pensioner poverty, even if you are in employment.

On the semi upside, London leads the table on economic inactive workers considering a return to work. And older Londoners still tend to work later into life than the rest of country, with the highest rate of over-65s in work at 14 per cent and in some Boroughs even up to 20 per cent.

Wise Age and other experts, including Abi Wood from Age UK London, recently gave evidence to the Greater London Authority’s (GLA) Assembly Economy Committee’s inquiry into financial hardship and employment facing older workers. This set out an agenda of action for London but also presented a more nuanced view of the priorities for older Londoners, very much focussing on overcoming disadvantage - https://www.onlondon.co.uk/campaign-groups-call-for-more-recognition-of-the-strengths-and-needs-of-older-londoners/

London needs a GLA led older workers strategy for London involving partners but also using the Mayor’s soft power to stimulate change. Older workers have been left behind in London’s economic recovery.

However, we also need a  better evidence base and understanding of the needs and circumstances of London’s older workers particularly barriers to employment and the multiple problems faced. There are big risks of lumping all “older workers” together, making assumptions about needs, or looking at older workers through the prism of existing provider employment support initiatives. And we need to measure how older workers are faring in the job market.

Clearly older workers wanting work need access to better quality localised employment support addressing their needs. This must be tailored, and our evidence is that older workers don’t like being grouped with younger workers on generic employment programmes.

Crucially those furthest from the job market, those facing the most inequalities such as disabled, ethnic minority older workers, women and those with health conditions and long-term unemployed need special attention and holistic help going beyond traditional employment support.  

As only 1 in 10 older workers receive employment support then reaching a wider audience of over 50s is vital. Better information for over 50s on not just work but financial wellbeing and pensions is also key – the big problem looming is those retirees not able to fund their later lives.

Finally, but not least - the “elephant in the room”  of ageism by employers needs tackling. Otherwise, older workers face the risk of returning to the workplace but suffer from  the same negative experience of a lack of support, falling job satisfaction and jobs not being flexible.  

The Mayor and partners should run a high profile combatting ageism campaign across London coupled with a championing older workers campaign to promote age friendly workplaces and good quality work.

London is still inching its way to become an age friendly city with the promise of an age friendly action plan coming soon. We’re looking for that to make real changes on the ground, not to be a grandiose GLA plan gathering dust on the bookshelves of City Hall. And it goes without saying all this should be championed by Sadiq Khan – himself  a flourishing older worker with an eye to remaining economically active.

Tim Whitaker, Trustee, Wise Age

Tim Whitaker is a consultant on age and employment and also works and writes on policy and communication issues affecting older people and an ageing society. He’s a Trustee of Wise Age a charity promoting training and support for workers over 50 in London and challenging ageism in employment plus a member of the London Age Friendly Forum.