Will ageism put a brake on over 50s returning to work?

Why have so many over 50s become economically inactive?

The Over 50s Lifestyle Study (OLS), undertaken by ONS, sheds some light on why so many in this age group dropped out of the labour market. Retirement is a an important factor but so too is redundancy, illness and wanting a change of lifestyle.

Source : OLS graphic

Just under half of over 60s gave up work to retire with about one third of those aged 55-59 giving this reason. Redundancies and having to leave work due to illness, stress or mental health concerns are also important factors, particularly for the under 60s. There is also a significant number of people who left work because they wanted a lifestyle change and just didn't want to work anymore. Persuading these back into the job market could be tricky.

The OLS also reveals that the Chancellor's initiatives could land well with some in this age group. About 6 in 10 over 50s would consider returning to work, a figure which increases to 72% among those aged 50-59.

So what needs to happen to attract the over 50s back into the job market?

The OLS reveals that this age group would like greater support in relation to wellbeing and health but also flexible working, including working from home and the ability to fit work around other responsibilities, such as providing care. Upskilling, particularly around IT skills, is a requirement for some so the Chancellor's skills programme could be useful here. And of course, a decently paid job would also help.

Personal finances will be at the heart of many over 50s' decisions about whether to return to work. About half rely on a private pension so the relatively weak performance of private pension pots over the last year might have an impact here. While many people are confident that their financial provisions will see them through, people at the younger end of the scale tend not to be so - only 38% of 50-54 year olds are confident in their financial provisions compared with 55% of over 60s. The cost of living crisis might also tip more over 50s back into work.

There is, however, another issue, largely ignored in the current debate, that will need to be tackled to enable older workers to return to the job market. This is the issue of ageism.

A survey for Legal and General and the Centre for Economics and Business Research found that 52% of jobseekers over the age of 50 believed their age meant they were less likely to receive offers of employment. And it's not just their perception. A survey of managers for Chartered Management Institute found that three quarters (74%) were open, to a large extent, to hiring younger workers between the ages of 18 and 34. But that number dropped to just four in 10 managers (42%) when it came to hiring people aged between 50 and 64.

Ageism as a barrier to returning

Getting the over 50s back into work requires that ageism be tackled in all parts of the labour market from recruitment to doing the job.

Discrimination on the basis of age has been illegal in the UK since 2006 but attitudes against older workers can show up on an almost casual basis to perpetuate stereotypes; older workers are slow, ponderous and incapable of adapting to new ways of working. It's seen in perceptions that it's not worth sending older workers on training courses because they won't take it in or implement learnings. They are too set in their ways. They'll have to take time off because they are always ill. They are expensive and expendable especially in a time of economic crisis.

Ageism is at its worse when it's so nakedly done. Our research with older people showed the human impact of redundancy. People we spoke with weren't told outright that they were too old when applying for jobs; that would be illegal. Instead, hiring managers hid behind terms such as 'having the wrong cultural fit' or 'being over qualified' for the role.

We also see casual ageism in recruitment packs. We've seen job descriptions asking for applicants who share the values of a young, dynamic and energetic company. We've seen others that ask for digital natives - shorthand for millennials. How much corporate marketing, designed to position the company as a good employer, features older people? Not much, is the answer.

We see it also in the response to the current labour shortage in some industries. The debate in the various trade press is around filling the skills gap by attracting young people through apprenticeships or getting rid of the need to have a degree. There is nothing wrong with this and actually is a good thing but commentators are largely silent on the huge pool of older workers left behind. Similarly, workplace policies in relation to inclusivity and diversity can often ignore the needs of older people.

There is a huge pool of talent and experience wanting to come back into the labour market. Unless we address casual ageism and create a true culture of inclusivity, they will remain lost, despite the Chancellor's efforts.