Read: Harnessing the potential of an age diverse workforce

By 2040, it is forecast that 42 per cent of the UK population will be aged over 50. Today the percentage of over 50s in the UK is already at 38 per cent, rising from 31 per cent in 1991. That’s a huge percentage of our potential workforce. 

During the course of the pandemic, we heard a lot about its impact on younger people across the country – on their education, their employment and their mental health. They are valid concerns and there is no doubt that there will be long lasting consequences, particularly in relation to the lost learning that affected so many young people, with potentially far-reaching repercussions on their job prospects.  

However, research by the Centre for Economics and Business Research (CEBR), commissioned by Legal and General, shows it is older workers in particular that are being significantly impacted in the current labour market, with more than one in ten disappearing from the workforce in the last five years as a result of redundancy.  

The report, Over 50s in the labour market, shows that among the 177,000 over-50s made redundant each year, 20,000 are estimated to have left the workforce. Nearly two-thirds felt that their age was a contributing factor in this decision. Although unemployment rates for the over-50s tend to be lower than the rest of the working population, in the period from 2007 to spring 2021, the average rate of redundancy has been nearly a fifth higher than for the under 50s.  

There can be a variety of reasons behind this – a lack of relevant skills, poor health or caring responsibilities – but it should be a red flag for employers who are losing the expertise and knowledge that older workers can bring to an organisation. It also represents a challenge for individuals who would like to continue working, as a financial necessity, to fund retirement or as a personal preference.  

As people live and work longer, existing and prospective employers need to recognise the benefits that an age diverse workforce can bring. They have a lot to offer.  

Older workers can bring life experience as well as accumulated knowledge. They often demonstrate resilience in the face of a challenge. They can act as positive role models and provide mentoring for younger employees. They often report higher job satisfaction and show greater loyalty and are less likely to move jobs as a result.   

New ways of working following the pandemic present an opportunity for older workers to thrive in the workplace. Flexible working, for example, will allow many to accommodate caring responsibilities or just have a better work/life balance.  Remote learning means less travelling so may be beneficial to an older worker in terms of cost and physical effort.  

None of us should be satisfied with a country that can effectively cast older workers aside. But beyond the question of what kind of society we want to live in, the UK economy simply cannot afford to be losing this much talent year after year.

Fortunately, many British businesses already understand that they need to harness the power of all their employees to succeed and so take the time to develop recruitment and retention plans that make the most of the experience and insights offered by older workers.

Let’s see those exemplar companies doing more to spread the word in the period ahead. Recruiting, retaining and retraining older workers will be a key element of building back better and ensuring that opportunities are available for every individual, no matter what their background or personal circumstances.  

Rt Hon Lord Walney, Crossbench member of the House of Lords & former Labour MP for Barrow & Furness