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Business Info Magazine – The Business Technology, IT & Workplace Magazine & Site for UK SMEs and Public Sector organisations : Since 1998

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https://businessinfomag.uk/B2B-Technology/rise-in-over-50s-unemployment-sparks-concern-over-long-term-impact-of-uk-workforce/

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Rise in over-50s unemployment sparks concern over long-term impact of UK workforce

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Nearly one million UK workers aged 50 and over are now struggling to secure employment, with new labour market data showing a 22 per cent rise in joblessness among over-50s since 2023. Industry leaders warn that surge is being fuelled by the combined effects of Labour’s Employments Rights Act and recent increases in employer National Insurance contributions, pressures that are disproportionately affecting older workers. According to the latest Labour Force Survey, 917,000 people aged 50 to 66 are currently unable to find a job. The figure rises to 996,743 when including those aged 66 to 70, many of whom remain keen to work despite being eligible for the state pension. The Employment Rights Act has also introduced new rights for employees to request changes to working hours or locations, measures that can be particularly important for older workers managing health conditions or caring responsibilities. However, employers are struggling to balance these requests with rising payroll costs and ongoing skills shortages. Rod Flavell, CEO at FDM Group, commented: “The scale of untapped senior talent is detrimental to UK growth, leaving senior professionals with extended spells out of the labour market, and skills gaps that are hard to bridge due to rapidly evolving technology and working norms.” “From what we’re seeing in the market, these experienced staff are significantly underutilised, especially during a period where businesses are crying out for skills in fast growing areas such as AI.” “The increase in applications from over-50s to our Returners Programme demonstrates a strong appetite to re-enter the workforce, but that must be aligned with the training in the skillsets that businesses need most. Our latest research found that over half of organisations are only just beginning to explore AI adoption, while 32% highlight skills shortages as a key barrier to hiring.” “If given access to the right upskilling pathways in areas such AI, and inclusive hiring processes, over-50s are exceptionally well placed to help plug these gaps and strengthen the UK’s workforce both now, and for the future.” For SME employers already grappling with rising payroll costs, the challenge is even more acute, making it essential to rethink how experienced workers are supported, trained and retained.