Older workers risk being sidelined by rapid shifts in the labour market without urgent investment in lifelong learning, according to new research.
A study by the London-based Chartered Institute of Personnel and Development (CIPD) prompted the body to call for a new era of reskilling to help people adapt to major economic changes and protect their long-term financial wellbeing.
The research warns that an ageing workforce, the growing impact of artificial intelligence and the transition to a net zero economy are combining to reshape employment across the UK.
The CIPD says older workers are among the most exposed to these changes, yet least likely to have access to training and development opportunities. Many face reduced job mobility, fewer chances to retrain and limited pathways to higher-skilled or better-paid roles.
With government data showing that nearly 45 percent of UK workers are not contributing to a pension, the organisation says a shift in approach is needed to support longer working lives and ensure people are not left behind as jobs evolve or disappear.
Skills Development Declines With Age
The CIPD’s report, Lifelong learning in the reskilling era: From luxury to necessity, reveals a sharp divide in access to development between younger and older employees.
Just 47 percent of workers aged 55 and over feel their current role offers good skills development, compared to 73 percent of workers aged 18 to 24. Only one in four older workers said their job offered good prospects for advancement.
Despite this, more than a third of over-55s believe they have skills that could be used in more demanding roles. But job moves are less common in this age group, and many risk becoming stuck in unsuitable roles or leaving the workforce altogether if they cannot retrain or adapt.
In England, employment among 50 to 64-year-olds has grown by 40 percent over the past two decades, official figures show, nearly three times the rate of overall employment growth. Over the same period, the number of workers aged 16 to 24 has declined by 13 percent.
Training Spend Falls as Pressures Rise
The report also reveals a significant decline in employer investment in workforce training. The amount spent per trainee has fallen by 27 percent over the past decade, from £4,095 in 2011 to £2,971 in 2022. Participation in training also decreases with age.
Public funding for adult learning has seen a similar trend, with a 31 percent fall in real terms since its peak in 2003–04.
The findings come as nearly a third of jobs are estimated to be exposed to AI and likely to change significantly, and around two million roles could be displaced by 2035 due to technological change. In addition, around 6.3 million workers are expected to be affected by the net zero transition by 2050.
A Call for Action
“Our analysis, and latest projections from Government on a pensions crisis, paint a bleak picture with profound implications for individuals as well as economic and social policy,” CIPD skills adviser Lizzie Crowley said.
“If changes to retirement age and the pensions crisis mean we’re all going to work for longer, we urgently need to usher in a new era of reskilling to help people develop into new roles and sectors.”
She added that the “reskilling imperative isn’t just an economic necessity; it’s a social contract. By reimaging how we support people to learn and adapt throughout their lives, we can build a more resilient, equitable and prosperous future for everyone”.
To support the shift, the CIPD is urging employers and government to take coordinated steps to make training more accessible, flexible and better aligned with older workers’ needs.
For employers, it includes boosting training budgets, offering structured skills development and creating more opportunities for redeployment into new roles. Flexible working hours and locations, along with mid-career reviews, can also help staff assess their options and plan for longer working lives.
On a national level, the CIPD recommends initiatives such as training vouchers, paid educational leave and the introduction of individual learning accounts to support long-term planning. It also suggests greater use of modular learning and micro-credentials to make training more achievable for those balancing work, caring responsibilities or other commitments.