Findings from a House of Lords committee reveal that older workers leaving employment to take early retirement, following the COVID-19 pandemic, contributed to the sizable labour force shortage currently being felt in the UK.
According to retirement specialists Just Group, recent employment data shows that there are now over 611,000 economically inactive workers than before the pandemic.
Moreover, compared to pre-COVID levels, there are 74,000 less economically active workers over-50.
The research now suggests that a deluge of older workers are seeking to rejoin the workforce, with an estimated 522,000 economically inactive 50-64 year olds currently seeking work; 25,000 of which had previously been retired.
Reintegrating Older Workers Within Full Time Employment
Government proposals to offer older workers a “midlife MOT” would create services to help people assess their finances and find suitable employment opportunities.
Speaking to the data insights, Stephen Lowe, Director of Group Communications 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 rejoin 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.”
Highlighting the need to offer further support to older workers looking to rejoin the labour market, Lowe continued: “These “Great Unretirees” will have taken a substantial knock to their confidence when it comes to making significant decisions with their finances.
“Supporting these workers back into the workplace with a strong financial wellness offering will help them find their feet in the workplace and build up their belief again.”
Small businesses access unsecured, fast funding from Got Capital. As an alternative lender, Got Capital offers financing solutions specifically designed for and catered to the needs of SMEs.
