Older workers in the North of England face significantly fewer employment opportunities compared to their Southern counterparts, a new report has found, with the South East having three times as many 50-64-year-olds in work than the North East.
This stark contrast equates to an additional £86 billion annual boost to the South East’s economy, according to a State of Ageing 2025 report by charity the Centre for Ageing Better.
It indicates that 75% of people aged 50-64 are employed in the South East, whereas only 66% are in work in the North West. In the North East, the employment rate for this age group is even lower, reveling a significant regional imbalance.
“Where you live has such a strong bearing on opportunities in life in this country, and that’s certainly true if you are looking for work in your 50s and 60s,” said Dr Carole Easton OBE, chief executive of the Centre for Ageing Better.
“The odds are already unfairly stacked against older workers in an ageist labour market but that can be significantly compounded by the local labour market you are trying to find employment in.”
Health-Related Economic Inactivity
Health issues further exacerbate these disparities. In the North West, 50% of people aged 50 to 65 who are out of work cite ill-health as the primary reason, compared to just 33% in the South West.
This suggests that older people in certain regions face compounded challenges when seeking employment. “When these regional inequalities combine with other factors, such as poverty, poor health or disability, then the odds are really stacked against many people finding work in their 50s and 60s,” Dr Easton said.
She added that the result was “a detrimental impact on individual’s mental health and wellbeing, their finances and their ability to save for retirement”.
The employment gap between disabled and non-disabled older people is particularly pronounced in the North East. Only 37% of disabled people aged 50 to 65 are employed in this region, compared to 79% of non-disabled individuals of the same age — a 42 percentage point difference.
The economic ramifications of these disparities are substantial. The higher employment rate of older workers in the South East contributes significantly to the region’s economy, while the North East’s lower employment rate among this demographic results in lost economic potential. Dr Emily Andrews, deputy director for work at the Centre for Ageing Better, said work in later life had changed but that government policy had not caught up.
“If the government wants to hit an overall employment rate of 80%, there are two groups of people whose employment rate lags behind this target: people aged under 25 and those aged 55 and over,” she said. “The government has set out specific plans to improve the employment rate among the under 25s, but not among the over 55s. It won’t meet that target until it does.”
She said that “[w]here retirement was once generally a ‘cliff edge’, with people moving directly from full-time work to no work, transitions are becoming more diverse and complex. That’s a significant change that needs to be accounted for.
“Before any further changes are made to the state pension age, the government should undertake a holistic review of its approach for people in their 60s so that policy better reflects the needs of this changed reality.”
Calls for Targeted Support
The Centre for Ageing Better advocates for a multifaceted approach to address these inequalities:
- Financial Assistance: Implement extra financial support for individuals approaching state pension age who are unable to work.
- Employment Support: Provide tailored employment assistance for those above state pension age who wish to continue working.
- Local Strategies: Develop regional employment strategies that address the unique challenges faced by older workers in different areas.
“Local authorities are best placed to understand the unique challenges and opportunities of local labour markets,” said Dr Easton. She added that with greater devolution, combined authorities and regional mayors had an opportunity to tackle the barriers that older workers faced and help unleash their full potential to the benefit of the local economy.
Company Initiatives
Employers also play a crucial role in supporting older workers. Over 500 organizations have joined the Centre for Ageing Better’s Age-friendly Employer Pledge, demonstrating a commitment to creating inclusive workplaces for all ages. This initiative aims to foster environments where older employees can thrive and contribute meaningfully.
Addressing the postcode lottery affecting older workers requires coordinated efforts from government bodies, local authorities and employers, experts say. By implementing targeted support and creating inclusive workplaces, the UK can work towards reducing regional disparities and ensuring that those in their 50s and 60s have equitable employment opportunities, regardless of their postcode.