I’m sure I don’t need to tell you that Jeremy Hunt’s words are aimed at the more than three million over-50s in the UK who are economically inactive.
It’s ironic that these are the same people who have been told so often that they are no longer needed at work. Two years ago, the Centre for Ageing-Better warned, “…experts say ageism in recruitment could be the final straw which prevents many of this group ever returning to work.” They refer to a study in which people described their experiences of seeking work in their 50s and 60s as “frustrating” and even “soul-destroying” [1].
Where have all the workers gone?
A recent report entitled “Where have all the workers gone?” [2] explains that the growth in economic inactivity is a “stark reversal of what was happening before 2020. The biggest contributor to this rise in inactivity has been increased earlier retirement, not increasing long-term sickness.” OK I get that the pandemic created a new set of circumstances, but I’m not surprised that people who can afford it simply do not want to return to work. Why would they want to?
What’s the problem?
Economic inactivity is a problem because it becomes harder to control inflation, damages growth and puts pressure on already stretched public finances.
Much has been written over the past few years about how to support employees over 50 at work, and this topic is currently in the news, with the government pledging more support. Comparatively little, in my view, has been written about the needs of those over 50 who are self-employed, or setting up a business, and it seems to me they have been ignored but I don’t understand why. I decided to interview some economically inactive people aged over 50 thanks to the Rest Less Community forum and Rest Less Lifestyle forum, to find out more. I have quoted some of the answers in this post, and provided more information about the interviews at the end.
Why they left the world of work
Retired Early
My skills were becoming obsolete, and I started getting bored as my job was no longer challenging and the future of the job was of little interest.
My job had changed so much, I got no more job satisfaction out of it. When we started you would be managing a team onsite, manage resources, hire people, but with outsourcing everything changed.
I was bored, annoyed, and demoralised.
I had worked long enough to gain the maximum company pension and it was pretty well expected that when that happened, you retired.
The company treated everyone as if they were replaceable.
The job had changed, I fell out of love with it, the managers were only interested in profits, there was a very stressful atmosphere. This is a very ageist industry, people are not valued.
We wanted the time to do the things we wanted to do.
Made Redundant
The plant I worked at was scheduled to shut down. I volunteered for redundancy, took the redundancy package, and left. The package and enhanced pension enabled me to go forward, it freed me up from my mortgage.
I had my own business, which I had to shut down in March 2020 because of Covid which meant the business couldn’t afford the rent. I took up a job in 2021 but was then made redundant. I now have health issues and am on the waiting list for an operation, so I can’t get a job because of the operation recovery time.
I didn’t want to retire but the MD wanted to and sold the business.
Ill Health
Work dried up because of my ill health My disability affects my short-term memory, and I can’t retain information. I’m now on antidepressants.
My illness affected my mental health and made me realise that I had done everything I had wanted to do in my job. I could afford to retire so I did.
Could there be a new world of work for the over fifties?
In April 2022 John Boys, Senior Labour Market economist for the CIPD wrote: “When older people say they are inactive (in retirement for example) and do not want a job, their only point of reference is the world of work as it is today. The world of work that they have just left because it didn’t work for them.” He continued to write “Older workers are the most likely to want to work fewer hours (for less pay). They are the most likely to be self-employed, a mode of working that provides lots of flexibility. Older workers also have the highest rates of hybrid and home working. Older workers are more likely to have caring responsibilities, and more likely to have a long-term illness or disability. The challenge for employers and policymakers is to create work that works for them.”
This makes sense, but how long will it take to change things?
participants’thoughts about their retirement
If the pandemic hadn’t happened and I was able to go out and meet people, I would have felt a lot better about working.
Had they tried to retain me I would have agreed because I felt I had more to contribute.
I would have remained if they had offered me something else, restructured the job to make it more interesting, but my skillset wasn’t required any more.
I miss not having purpose, although I don’t miss any other aspects. I do volunteer work two mornings a week.
I miss the team spirit, the socialising, and the banter with colleagues.
I missed my loss of status – nobody reporting to me. My identity had changed.
We had both worked in schools and holidays were suddenly much cheaper so we could travel more.
I can do whatever I want.
The more time you have to fill, the more money you can spend while not earning an income. I knew I would eventually have to go out and work at something.
"They are gone and they are not coming back”
Last month the Yahoo News wrote: ‘Almost all the over 50s who have left say they have no intention of working. As labour market economist Jon Boys put it: "They are gone, and they are not coming back."’ Participants were asked if they agreed with this statement.
Six disagreed and five agreed, but some of the participants who agreed acknowledged that cost-of-living increases may force people to return to work.
Will the participants ever consider returning to work?
Seven out of nine economically inactive participants said they would consider it. Earlier this month, ONS data revealed that among those aged 50-64 where there was a drop of 67,000 economically inactive people. However, there remains over 270,000 more workers aged 50-64 years old who are economically inactive than before the pandemic.
As a part-time employee, not self-employed. I may apply for jobs although I know I may encounter ageism if I do, because it’s harder to get a job as employers feel they won’t get too many years’ work from you.
It’s difficult for me due to my disability. Employers want certificates etc and it's sometimes hard to get the documentation they need to be able to apply for a job. The jobs market is a minefield.
I would if something happened money- wise but this is unlikely.
what about self-employment?
Having spent several years helping people aged 50+ set up businesses or become self-employed, it’s clear to me that many of their needs have not been addressed, understood or even explored adequately by government or other relevant organisations. Here’s what the participants thought:
I’ve already had my own business and I wouldn’t do it again, as recent changes in legislation have put me off.
Having left a large corporation I realise that I’ve been institutionalised since leaving school and would never have considered starting my own business if I hadn’t been approached to do it.
I wouldn’t want to set myself up in business or become self-employed as I don’t know what I have to offer. But if I was given a skills assessment and training, I might consider a job or self-employment opportunity.
This would be too stressful for me, there would be too many things to juggle.
I am considering self-employment based on my hobbies.
I am currently working towards setting up a business, based on an outdoor hobby. It’s become my dream.
None of the participants have been offered or were aware of any free support available to them locally. There is probably some support available, but unlikely to be aimed at people over 50, whose needs differ from younger people.
Jeremy Hunt’s Vision
In his vision for long-term prosperity in the UK, Jeremy Hunt spoke about the importance of employment and tackling economic inactivity, helping more people into work and filling the vacancies in the jobs market. He also outlined ambitions to help more disabled people and those with mental illnesses into work, and a pensions system that encourages continued workforce participation. Does this includes support for the self-employed? It’s difficult to say right now. The Federation of Small Businesses wrote, “The Chancellor’s speech today had all the right elements to build a successful, prosperous economy…..The litmus test of today's framework and the policy decisions that now flow will be on the Chancellor's budget on March 15, when we hope he follows today’s bark with a bite.”
So, what does all this mean?
Economically inactive people over 50 have not closed their minds to the possibility of returning to work, even those who can afford not to. To encourage them to remain in work until later life, working conditions must work for them. It’s up to employers and government to make this happen and the need to help grow the economy is a huge incentive.
It also means that self-employment, if supported by government, could become the option of choice for many people over 50 and not perceived as a risky, complicated or unduly stressful one. But there is a huge amount of work to do before this can happen. Only one of my interviewees spoke of her idea as a dream that she wants to make real. Could it be possible that, in the future, more people over 50 will have the opportunity to realise their dreams through their work? Having helped people achieve this and observed how they thrive, I certainly hope so.
So, Jeremy Hunt, let’s see what you can do for your country.
[1] https://ageing-better.org.uk/news/ageism-recruitment-could-be-final-straw-over-50s-made-redundant Feb 2021
[2] House of Lords Economic Affairs Committee, 20 December 2022