Over-50s facing ‘second wave’ of job losses

Workers over the age of 50-years old could be hit by a ‘second wave’ of job losses when the government’s furlough scheme comes to an end, according to a new report.

The report from the Centre for Ageing Better and Learning and Work Institute shows that the number of older workers on unemployment related benefits has nearly doubled as a result of the pandemic – increasing from 304,000 in March to 588,000 in June.

It adds there is a risk of a ‘second wave’ of job losses for older workers as the furlough scheme comes to an end in October.

Around one in four older workers – 2.5m in total – have been furloughed, and hundreds of thousands of these workers may be unable to return to their previous jobs as some sectors struggle to recover.

The report states just one in three (35%) over 50s who lose their job return to work quickly, compared to two in three (63%) workers aged 25-34.

Over 50s who are unemployed are twice as likely to have been out of work for over a year than those aged 18 to 24.

It adds that many over 50s have been poorly served by previous employment support programmes.

The Work Programme – which was introduced following the last recession – failed older claimants; just one in five (19%) adults in their late 50s found a lasting job, compared to two in five (38%) young people aged 18-24.

‘As this report shows, older workers have been hit hard by the crisis, and it’s crucial that they are not forgotten in the recovery efforts,’ said Centre for Ageing Better’s chief executive, Anna Dixon.

‘Without action we could see many in their 50s and 60s falling out of the workforce years before their state pension age and struggling to get by until they are able to draw their pension.

‘We know that a one-size-fits-all model doesn’t work when it comes to helping over 50s back to work. Instead we need to see targeted support, and a strong message from government that these workers are just as entitled to support as younger age groups.’

The full report – A mid-life employment crisis: how COVID-19 will affect the job prospects of older workers – is available to read here.

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