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Gloucestershire Business News

Employing more older workers could boost UK's economy

The UK could boost its GDP (gross domestic product) by around 4.2 per cent (around £80 billion at today's values) if the employment rate of workers aged over 55 could match that of Sweden.

That's the finding of a new PwC analysis comparing the employment of older workers across 34 OECD (Organisation for Economic Co-operation and Development) countries. There is a 12 percentage point gap between the employment rates of workers aged 55-64 in the UK and Sweden which comes top.

PwC's Golden Age Index reflects the labour market impact of workers aged over 55. The UK has remained middling in the rankings since 2003, falling by one place from 18th in 2014 from 19th in 2015.

Across the UK, the South East of England has the highest employment rate of older workers aged 50-65 at 74.5 per cent compared to a UK average of 70 per cent.

John Hawksworth, PwC's chief economist, (pictured) commented: "While the UK's absolute performance on our Golden Age Index has improved over time, it's still scoring below the OECD average.

"As the number of people over 55 continues to grow steadily and life expectancy increases, the UK needs to make it as easy as possible for people to continue working for longer if they wish to do so. This would boost both GDP and tax revenues, so helping to pay for the increased health, social care and pension costs of an ageing population."

Across the UK older female workers have a lower employment rate than their male counterparts at 64.9 per cent for 50-64 year olds compared to 75.4 per cent for males.

PwC has found a higher educational background is also associated with working later into old age. More qualified older workers may be better able to adapt to technological changes, while the industries in which more qualified workers are employed could be better suited to working in later life.

John Hawksworth added: "Reforming pension systems and providing financial incentives to encourage later retirement will be key to governments increasing the number of older workers.

"Measures to combat age discrimination and support lifetime learning in the face of rapid digital and technological progress are also required.

"The call by the government's business champion for older workers, Andy Briggs, for employers to increase the number of older people in the UK workforce by one million over the next five years is a step in the right direction, but more needs to be done."

Carol Stubbings, global people and organisation leader at PwC, commented: "For employers, flexible working and partial retirement options can pay dividends, as can redesign of the workplace to meet the needs of older workers.

"Flexible working policies can incentivise women to remain in work longer, so having the right policies in place will increase the employment rate of those over 55 and may help to reduce the gender pay gap which is shown to increase with age."

What do you think? Email mark@moosemarketingandpr.co.uk 

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