New analysis from the Centre for Ageing Better reveals that there has been an increase of nearly one million individuals aged over 65 in the workforce since 2000.
Shifting workforce dynamics in the older population
The data reveals that there are now nearly one million more individuals aged 65 and older active in the UK workforce compared to the turn of the century. This is a significant shift, with over 11.5% of individuals now continuing to work beyond their 65th birthday, doubling the 5.2% figure observed in 2000, as revealed by an analysis of official ONS Labour Market statistics by the Centre for Ageing Better.
In 2000, there were 457,000 workers aged 65 and above, and this number has now grown to 1.43 million. A substantial part of this growth can be attributed to the increase in the population aged 65 and above over the past 23 years. Changes in the state pension age have also influenced employment rates, particularly among women.
many older workers have zero-hours contracts
Among these older workers, self-employment and part-time roles are prevalent. However, there is a noticeable trend of older workers engaging in full-time employment, even extending their careers beyond the state pension age.
Surprisingly, a considerable proportion of these individuals are on zero-hours contracts, ranking second only to the 16-24 age group in terms of contract type. Of the 5.4 million additional workers in employment since 2000, almost 976,000 belong to the 65 and above age group, making it the second-largest increase after the 50-64 age bracket, which saw 3.1 million additional workers.
Working beyond state pension age
Approximately half of the growth in the number of 65+ workers since 2000 can be attributed to demographics and the ageing population. The adjustment of the state pension age has also played a role in encouraging some individuals to extend their careers into their late 60s to improve their financial situations. Additionally, many older workers choose to remain in the workforce for financial and well-being benefits.
Luke Price, Senior Research and Policy Manager for Work at the Centre for Ageing Better, emphasises that working beyond the state pension age should be a choice. For those who wish to do so and can find suitable employment, it can yield positive health, well-being, and financial outcomes. Nevertheless, it is important to remember that statistics alone do not reveal the quality of employment for this age group. Furthermore, age discrimination may prevent some individuals aged 65 and above from securing employment, as they are unable to register as unemployed once they have reached the state pension age.
Some individuals continue working past the state pension age due to financial necessity, as they find their private pensions insufficient. Meanwhile, others may be forced to stop working before reaching the state pension age due to ill-health or caring responsibilities. Offering better health support and more flexible employment conditions to accommodate caregiving responsibilities could enable more of these individuals to extend their careers if they wish to do so.
economic benefits of hiring older workers
Dr. Karen Hancock, Research and Policy Officer at the Centre for Ageing Better, emphasises the economic significance of older workers, highlighting their role in filling labour and skills gaps. Their wealth of experience, often spanning up to five decades, can be a valuable asset to employers, colleagues, and customers alike.