Supporting older workers to rejoin the workforce or start their own businesses could significantly boost the UK economy, according to a new report released today. The report, “Access all Areas: Older Workers,” highlights the untapped potential of this demographic in driving economic growth and alleviating fiscal pressures on younger generations.
The research, conducted by Enterprise Nation and The Entrepreneurs Network think tank, underscores that addressing the economic inactivity of older individuals, exacerbated by the COVID-19 pandemic, is crucial for economic recovery. The report warns that failure to engage older workers could hinder economic growth, fuel inflation, and worsen the cost-of-living crisis.
Older Workers’ Potential and Economic Impact
The report reveals that there is a substantial appetite among older individuals to return to the workforce or embark on entrepreneurial ventures. It found that 67% of entrepreneurs over 50 believe that now is a good time to start a business. This enthusiasm highlights a significant opportunity to harness the skills and experience of older generations, which could be pivotal in addressing the UK’s economic challenges.
Emma Jones, CBE, Founder and CEO of Enterprise Nation, emphasised the urgency of the situation. “We are at a crossroads,” she said. “The choice is between accepting higher economic inactivity among older people and facing reduced productivity and persistent inflation, or taking proactive steps to reintegrate older individuals into the economy. We believe it is possible to turn things around with the right support.”
Jones pointed out that many older individuals who left the workforce during the pandemic are now seeking ways to return, but they need targeted support. “We should not just aim to return to pre-pandemic levels of activity. Our goal should be to create an environment where as many people as possible can contribute to the economy, whether through employment or entrepreneurship.”
Key Findings and Recommendations
The report highlights a concerning trend: the number of people aged 50 to 64 who are economically inactive increased from 3.27 million in early 2020 to 3.56 million in early 2023. This rise in inactivity mirrors broader economic issues, including rising inflation and a shrinking workforce.
To address these challenges, the report offers six recommendations:
- Promote Access to Work: Expand the government initiative to support individuals with physical or mental health conditions in finding or staying in work.
- Modernise Work Adjustment Passports: Streamline the process by allowing online submissions of necessary documentation.
- Address Childcare Costs: Liberalise regulations on childcare to increase the supply of providers and reduce costs, helping older workers balance work and caregiving responsibilities.
- Support for Business Start-ups: Provide targeted support for older individuals looking to start businesses, leveraging their financial stability and experience.
- Reintroduce and Reform the New Enterprise Allowance: Restore and update the scheme to better support new business ventures, similar to the previous Enterprise Allowance Scheme.
- Combat Ageism: Promote an inclusive work culture and tackle age discrimination in hiring processes.
Case Study: Chris Dunn’s Success Story
The report includes a case study of Chris Dunn, a Cambridgeshire-based consultant who launched his own business at the age of 50. Dunn, with extensive experience in senior commercial roles, started his consultancy in 2014 after a successful career in UK manufacturing and technology industries.
Dunn’s business, specialising in business development and change management, has thrived over the past nine years. He has also contributed to mentoring and training, underscoring the value that older individuals can bring to the workforce. “Running my own business has accelerated my learning and professional development,” Dunn said. “There are thousands of over-50s like me who are not ready to retire but are actively supporting the next generation of business leaders. Many more could do so, and this would significantly impact the current skills shortage and productivity crisis.”
Conclusion
The report concludes that there is a vital need for increased support for older workers to fully tap into their economic potential. As the UK faces a series of economic challenges, leveraging the skills and experience of its older workforce could provide a significant boost to productivity and growth.
Eamonn Ives, head of research at The Entrepreneurs Network, emphasised that understanding and addressing the barriers to older workers rejoining the labour force is essential. “Policymakers must explore every avenue to encourage older individuals back into work or entrepreneurship,” he said. “The economic benefits of doing so could be substantial.”
By focusing on these recommendations and harnessing the potential of older workers, the UK can make strides towards a more robust and inclusive economy.