Approximately 522,000 economically inactive 50 to 64-year-olds are looking for work, including 25,000 of those who were previously retired, according to Just Group’s analysis of labour market statistics from the Office of National Statistics (ONS).
Considering 34% of organisations with more than 10 employees have reported workforce shortages, 28% found this was having a significant impact on operations, and 40% have been unable to meet demands, Just Group suggested that older staff may hold the key to addressing current labour market issues.
Stephen Lowe, group communications director at Just Group, said: “At the start of the pandemic, there was a surge of older workers leaving employment as they took the opportunity to retire or pursue other opportunities.
“But, we are now seeing that trend reverse with ‘The Great Unretirement’ as many of these older workers look to re-join the workforce. This appears to be driven by a number of factors including the rising cost of living which is increasing pressure on household budgets and pension pots.
“With businesses up and down the country facing difficulties recruiting and retaining staff, there is a clear opportunity to harness the experience and talent older workers offer. It’s a tight labour market but there is evidence to suggest greater financial wellness provision could help tip the balance, especially for this older age group who will have first-hand experience of the importance of having a robust financial plan in place for later life.”
Lowe added that businesses looking to harness this talent demographic should be aware of their specific needs. For example, 33% of older workers said they would be more motivated if their employer helped them with financial planning to get their retirement plans in order.
A survey conducted by Canada Life among 2,000 UK adults in October 2022 also found that flexible working (80%) and part-time opportunities (78%) were key to attracting older workers.
However, 19% of respondents aged 55 and over told Canada Life that they felt discriminated against in the workplace – this equates to more than 3.9 million employees, based on population statistics from the ONS.
Dan Crook, protection sales director at Canada Life, said: “The UK economy is facing a significant labour shortage due in part to the ‘silver exodus’ from workplaces. However, as some of these people think about un-retiring, this presents a significant opportunity for employers. Not only to focus on attraction and retention, but to entice older workers back into the workforce, creating diversity of thought and age.
“Now more than ever, employers must think carefully about how they can create and nurture a healthy and happy workforce, introducing benefits to suit a wide variety of circumstances and needs. Employing a mixture of workers of all ages will not only create an environment in which employees can share experiences and skills, but it will also bring a broad range of perspectives to the table.”
