Government data shows that older workers are staying in the labour market for longer, but many still face barriers linked to health, confidence and skills.
The employment rate for 50-64-year-olds is 71.6 percent in 2025, up 0.7 percentage points from a year ago, according to the Department for Work and Pensions (DWP) latest figures. This is still below the record high of 72.6 percent in 2019.
But the data also shows persistent inequalities for this age group as health, gender and qualifications shape job prospects.
The average age people leave the labour market has climbed again, reaching 65.8 years for men and 64.7 years for women. This is the highest age since annual records began in 1984.
DWP data showed that the state pension age continues to mark a sharp divide in terms of employment. For people aged between 65 and 66 the employment rate falls by almost 13 percentage points, while inactivity rises by a similar amount.
Economic inactivity for people aged 50-64 fell to 26.1 percent in 2025, down 1.2 percentage points on the previous year, but it is still above the pre-pandemic level of 25.5 percent.
Women in this age group are more likely to be economically inactive, with a rate of 30 percent compared with 22 percent for men. Long-term health conditions are the main reason, with 44.7 percent of inactive people citing sickness, injury or disability as their main reason for not seeking work.
Gender differences persist as women are twice as likely as men to give looking after home or family as the reason for quitting work, while men are more likely to cite retirement.
Qualifications are also a decisive factor in employment chances. The employment rate for older workers with degree-level qualifications is 78.8 percent, compared with just 47.1 percent for those with no qualifications.
However, employers who invest in flexible work, health support and targeted development programmes may not only retain experienced staff but also unlock the potential of a significant number of older people who want to return to work.
Kevin Fitzgerald, UK managing director at Employment Hero, said the data reflects a wider trend of older employees prioritising security over change.
“The latest DWP data shows only a small increase in employment for those aged 50 and over, reflecting a wider trend of employees ‘job hugging’ to navigate the current UK jobs market.
“Our Jobs Report shows 45 percent of employees over 55 now prioritise job security over ambition, while just 20 percent are considering a career change,” he said.
He warned that older workers remain particularly vulnerable to structural unemployment.
“Our data also shows 58 percent of over-55s lack confidence in their ability to find a new role quickly, and only 6 percent started a new job in the past year, compared with 35 percent of 18-24 year olds,” he added.
“Job mobility is essential for growth, and more support is needed to help older workers navigate today’s complex labour market.
“As emerging technologies reshape workplaces, businesses have a responsibility to ensure all employees can develop the skills needed to future-proof their careers. Well-structured training programmes can help ensure older employees aren’t left behind.”
