Closing the employment gap: how fair play for over-50s can boost the economy

July 17, 2024

The current labour market presents an excellent opportunity for the government and employers at large to consider how supporting and investing in workers aged 50+ can positively transform the UK's economy and empower those in this age group to continue expanding their experience. The Centre for Ageing Better (the Centre) recently joined UK-wide organisations in creating a Commitment Plan (the Plan), containing six key steps that relevant organisations consider the government should take to effectively improve the employment rate of older age groups. The need to consider measures to optimise 50+ year olds' access to the labour market is not a new-found challenge. We have previously spoken about the 50 Plus Choices Employer Taskforce Report (see our blog) and it is imperative that this conversation is continued to highlight the barriers that this age group faces and echo how minimising them can raise the employment rate on a practicable level.

The stagnation and its impact

Currently, the employment gap between 35 to 49-year-olds and 50+ is 14%. As the state pension age is set to rise, the Centre is urging employers and the government to look into closing the gap before it potentially expands. The 50+ age group is also likely to experience significant struggles in providing unpaid care and balancing childcare responsibilities, amongst other challenges. These challenges are further exacerbated through age bias practices, with a recent Canada Life survey showing that 25% of those aged 55+ state that they have fewer opportunities to advance their career. These and many other social and personal factors result in economic inactivity or reduced labour participation of 50+ workers.

What are the six pillars of the Plan?

The Plan refers to six key strategic points in tackling the employment gap. The first pillar is enhancing employment support through establishing clear and transparent metrics and performance targets. Secondly, the Centre encourages investment in tailored employment assistance for those over 50 through JobCentre Plus and similar services. Thirdly, launching employer awareness campaigns is recommended to educate and tackle bias. The fourth pillar is expanding access to upskilling and reskilling opportunities, and the fifth is an extension of the current carer's leave entitlement and flexible working rights. The final pillar is an urge to the government for a review of the Department for Work and Pensions' policies affecting people in their 60s to align with the contemporary realities of working and retirement.

Measures and benefits

In the meantime, there are a variety of actions that can be taken to help close the employment gap. Implementing back-to-work support measures, targeting the key barriers faced by those aged 50+, can be helpful in employee retention and promotion of age-awareness across the board. For example, making use of flexible working and providing additional or paid days of carer's leave would foster employees' wellbeing and, in turn, boost productivity. Our blog offers some further insights into how flexible working for over 50s could increase economic activity and close the employment gap.

A further step would be to invest in developing upskilling programmes and additional training to help 50+ workers understand their options for career changes or promotions. This helps ensure that they are given a fair chance at understanding what the business's needs are, how the market is changing and how they can position themselves advantageously, so they can continue their professional development.

Additionally, employers could look into implementing training and starting a meaningful conversation with all levels of their organisation to minimise prejudice against this age group. Establishing a clear and streamlined point of contact for the affected age group could allow employees to seek the support they need, be it through seeking career mentorship or requesting additional days to deal with their care-giving responsibilities or health appointments.

Largely, the Plan could be used as a starting point by employers to understand better the challenges that their 50+ employees face and could serve as an insight into how recruitment practices can be changed to make the market more accessible to this age group.