There will be an increased number of older jobseekers struggling to find a job in the coming months as the government moves to wind down its furlough schemes, the Institute for Fiscal Studies has warned.
Research on the patterns of work for 50 to 69 year-olds, published by the IFS today (June 17), found there are likely to be “significant challenges” for this age group when it comes to finding a job after the end of the furlough scheme.
There could be a raft of older workers seeking work in the future, as this age group are more likely to have been furloughed than middle-aged workers.
For example, at the end of April 2021, 14 per cent of workers over 65 were furloughed, compared with 10 per cent of those aged 40–49.
According to the IFS, there are a number of reasons that finding new work may be challenging for these individuals.
Firstly, most older workers do not have much recent experience of searching for work, with two-thirds (69 per cent) of 55-year-old workers having been with their employer for more than five years.
In addition, only 4 per cent of older workers typically change employer in a single year and they tend to stay in the same occupation, which may not be helpful if vacancies are not available in their current line of work post-Covid.
Flexible working
Before the pandemic hit, many older workers wanted to work reduced hours and have more flexibility in their jobs.
The IFS found that 16 per cent of 50 to 69 year olds wanted to cut their hours, up from around 14 per cent prior to the Great Recession - an increase of around 230,000 people.
People in their 60s, those who own their home outright, those reporting a limiting health condition, and those who have been in their current job for longer are particularly likely to want to work less, the research found.
Meanwhile, about 10 per cent want to move into part-time work as a gradual transition into retirement.
In comparison, 9 percent of older employees tend to become self-employed in the run-up to retirement and nearly half of full-time workers move straight into retirement.
However, about 7 per cent of older workers in 2019 wanted to work more hours per week.
The IFS found these people were more likely to have low earnings and shorter job tenures, be in their 50s and have temporary employment contracts.
Heidi Karjalainen, a research economist at the IFS and an author of the report, said: “Part-time work has a key benefit of balancing life inside and outside of work, and for some workers it acts as a way of making a more gradual transition towards retirement.
"But the fact that those with higher rates of education and living in less deprived areas are more likely to make this switch suggests that this option is not equally open to, or possible for, everyone.
“It would be a positive outcome if adjustments to working practices in the wake of the pandemic allow more people the opportunity of working flexibly.”
