Reduced job satisfaction before the pandemic significantly contributed to workforce departures among individuals in their 50s, according to research from Phoenix Group’s longevity think tank Phoenix Insights.
According to research, which polled 1,000 people over 50 and additional focus group research, job satisfaction was a key reason why people in their 50s left the workforce during the pandemic.
The percentage of 50 to 64-year-olds who are economically inactive dramatically grew throughout that time, reaching a peak in May to July 2022 at 27.7 per cent, and has remained high in the post-pandemic employment market. Prior to the pandemic, the percentage of 50- to 64-year-olds who were economically inactive had dropped every year since the mid-1990s to a record-low 25.2 per cent.
According to the study, persons who left the workforce in their 50s during the pandemic experienced diminishing job happiness in the years leading up to their retirement, far before reaching state pension age. The study examined annual data on job satisfaction from 2009/10 to 2020/21. In contrast, individuals who elected to continue working reported slightly higher job satisfaction.
A further 34 per cent of the same age group who were still working said they were not fulfilled by their employment, and 59 per cent of respondents in their 50s thought older workers were being left behind by companies. The focus group participants stated that while early in their lives, they valued their jobs, working situations became more unfavourable as they got older.
Phoenix Group director of Phoenix Insights Catherine Foot says: “Huge numbers of people in their 50s dropped out of work during and immediately after the coronavirus pandemic and our research suggests job dissatisfaction played a big part in this. While some over-50s have returned to work over the last year, the pace of return has been slow with many remaining dissatisfied or facing barriers and insufficient support to re-enter the workforce.
“Good quality, satisfying jobs matter to people of all ages. For those over 50, we know that it’s particularly important that jobs provide flexibility, support for people with caring responsibilities and health conditions, and opportunities to develop skills. We also know from our research how crucial it is that businesses tackle what can be quite subtle but deeply ingrained ageism in their recruitment process.
“Ensuring people remain in good work later in life can be hugely beneficial for an individual’s finances and wellbeing, and with labour shortages still a major issue in our economy, it is also a key element to boosting the UK’s post-pandemic productivity and economic growth for the years ahead.”
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