Up to 522,000 economically inactive 50 to 64-year-olds, including 25,000 who had previously retired, are currently looking for work, according to labour market statistics, which could help with staff shortages.
According to Just Group, the number of economically inactive over 50s has increased by 611,000 since the pandemic but over half a million 50-64-year-olds are looking for work. More than a third or 34 per cent of companies with more than 10 workers claim to be experiencing a labour shortage.
Businesses are vying for employees due to a competitive labour market. A separate ONS study found that 3 out of 10 or 28 per cent of companies with more than 10 employees are having trouble filling staffing vacancies, which has a major impact on their business operations.
Around 40 per cent claimed they couldn’t keep up with demand, 13 per cent had to suspend some business, and nearly a quarter or 24 per cent had to hire temporary workers.
Just Group group communications director at retirement specialist Stephen Lowe says: “At the start of the pandemic, there was a surge of older workers leaving employment as they took the opportunity to retire or pursue other opportunities.
“But, we are now seeing that trend reverse with ‘The Great Unretirement’ as many of these older workers look to re-join the workforce. This appears to be driven by a number of factors including the rising cost of living which is increasing pressure on household budgets and pension pots.
“With businesses up and down the country facing difficulties recruiting and retaining staff, there is a clear opportunity to harness the experience and talent older workers offer. It’s a tight labour market but there is evidence to suggest greater financial wellness provision could help tip the balance, especially for this older age group who will have first-hand experience of the importance of having a robust financial plan in place for later life.”
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