Men aged 50+ who have lost their jobs in the recession are at serious risk of being shut out of the labour market forever unless the Government takes urgent action in the Pre-Budget Report, a coalition of charities and employment organisations are warning in a new report out today. 

New figures reveal that older workers are finding it harder than any other age group to get back into work after being made redundant, with fewer than 1 in 5 (18.7 per cent) of over 50s finding employment within three months, compared to more than 40 per cent of 25-34 year olds.(1) 50+ men are clearly faring the worst, with long term unemployment (6-12 months) more than doubling over the last year among this group.(2)

For many, this premature exit from the job market will effectively force them into an early retirement. With recent research showing that nearly three-quarters of over 55s want to work past the State Pension Age as the recession hits their pensions(3), the coalition is concerned that this will condemn many people to an uncomfortable retirement and force them to rely on State benefits.

In contrast, women in this age group appear much better equipped to ‘bounce back’ from redundancy. Employment rates among 50+ women have increased and long term unemployment among this group has risen by only 23 per cent.  This could be due to their ability to take up part-time jobs or willingness to take lower paid roles service sector.(4)

Age Concern and Help the Aged, the Chartered Institute of Personnel (CIPD) and The Age and Employment Network (TAEN) are calling on the Government to use the Pre-Budget Report to provide a new package of support to get people aged 50+ back into work.  This package should include:

• Intensive support for unemployed people aged 50+ within three to four months of losing their jobs to prevent them from becoming detached from the labour market.
• The job guarantee for unemployed people aged 18-24 once they have been in receipt of Jobseeker’s Allowance (JSA) for nine months should be extended to JSA claimants aged 50+.
• Jobcentre Plus services should be ‘age proofed’ to ensure high quality back-to-work support for the over 50s. Personal advisers and others providing services need to have the awareness, skills and confidence to provide personalised support suited to the needs of older clients. 
•  Existing employer initiatives, such as Jobs Pledge and Train to Gain should include a commitment to meet Age Positive standards.(5)

The coalition has also called for the immediate abolition of the Default Retirement Age which is being used by many employers to force willing and able workers to retire before they are ready.

Andrew Harrop, Head of Public Policy at Age Concern and Help the Aged said:  “An end to the working lives of men in their 50s now will not only condemn them to an uncomfortable retirement, but will also deprive the recovering economy of their skills and experience, just when they are most needed. The Government must take action in the Pre-Budget Report to avoid creating a lost generation of older workers.”

Chris Ball, from TAEN - The Age and Employment Network, said: “We should learn from the recessions of the 1980s and 90s which resulted in nearly four out of ten men aged between 50 and state pension age being out of work.  A large proportion of those affected never worked again and were parked on incapacity benefits until they reached state pension age.  Recessions tend to follow similar trajectories. As this one drags on it is possible that history will be repeated with growing numbers of older workers unable to get back into work. This must not be allowed to happen.

“We need intensive back-to-help support to be available to older jobseekers - in particular older men who are increasingly emerging as the main sufferers. This should start at the latest after three months of unemployment, instead of the six months which presently applies. Such support would address the additional age-based barriers older workers face in getting back to work - a problem clearly emphasised by TAEN’s Survey of Jobseekers Aged 50+ .

“I believe the PBR would be an ideal opportunity for the Government to announce employment support services fit-for-demographic purpose in our ageing society.”

Dianah Worman OBE, CIPD Diversity Adviser said: “Amid concerns of a lost generation, the Government has rightly concentrated efforts on the young. But as we approach the tipping point of claimants entering long-term unemployment we should ensure that the economy doesn’t lose out on the experience and skills of an older generation.

“For older workers it is far too easy for long-term unemployment to turn into permanent disengagement from the labour market. A job guarantee for older workers would send a signal that these people cannot and should not be resigned to spend the rest of their life reliant on the state. When the labour market picks up, employers need older people in work, not languishing on the scrapheap.”

ENDS

Notes to editors

1. LFS Redundancy tables published by the Office of National Statistics (re-employment rates by age, Quarter 3, 2009)                                                                                                                              

2. Office of National Statistics, Labour Market Survey, Unemployment by Age and Duration, November 2007

                                                                                                                                     3.Employee Outlook survey of 2,000 working people, by the Chartered Institute of Personnel and Development (CIPD)                                                                                                                                                                                                                                                                                                                                                4.Office 4. Office of National Statistics, Labour Market Survey, November 2009

Case study

Leslie , 62, was made redundant in September 2007 when the factory he worked in moved to Poland.  He had worked for 39 years as a Production Line supervisor on the factory floor. 

He went to the Jobcentre looking for similar roles but there were no job vacancies in his area and as he does not drive and public transport is poor, he was unable to consider a job further afield. He has managed to get some shift work at supermarkets, but has found it impossible to secure anything more than part-time work and is currently still unemployed.  He sees the rise in part-time work as a growing trend and says it is very rare to get a full-time job (and a living wage that goes with it).

He went on a Sports Coaching course and volunteered to start a Saturday morning football session for children and has done some sports coaching for the Council on a casual basis.  He would like to do teaching or mentoring of young people but cutbacks and competition from more experienced applicants for jobs has prevented him from progressing in this field.  He wants to give something back to society and is currently volunteering at a local Youth Club two nights a week. 

He feels very let down by the Jobcentre and doesn’t feel they really help you get a job, that they “treat you as if you were a criminal” and feels advisors don’t have the time to sit and talk with you.  He says that some days he does feel a bit down about being unemployed.  “Where else can I make a contribution? You can find work in the voluntary sector but it is unpaid - and that doesn’t pay the bills.”

His wife, Moira worked in the potteries but was made redundant in July 2009.   Moira rang up the Jobcentre in search of a new position.  However, rather than being offered careers guidance, when she told them that her husband was unemployed and 62, she was told Leslie could claim Pension Credit for both of them.  Given that she had worked for 42 years, she felt the Jobcentre was very dismissive of her.