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New government figures out today show that unemployment of those over 50 is rising at more than double the rate of any other age group.¹ Age Concern is warning that older workers are facing a dual blow of rising unemployment and forced retirement‚ which could make them amongst the biggest ‘job-cut casualties’ of the forthcoming recession.

Older workers were disproportionately affected by job cuts in the last two recessions and today’s figures show they look set to again be amongst the hardest hit groups as unemployment rises. Research from the charity shows this is a huge concern - half of workers aged 55+ are worried they are more at risk of losing their job because of their age and almost nine out of 10 people think it is harder for older jobseekers to get a job.

The discriminatory Default Retirement Age ‚ introduced in 2006‚ is an axe over the necks of older workers in the likely recession. It allows employers to use mandatory retirement ages (MRAs)‚ forcing those 65 or over out of their job just because of their age.  MRAs are also a barrier in employers' minds to promotion‚ training and job mobility for people in their late 50s and early 60s.  Worryingly‚ research by the CIPD has shown that almost one in five employers say that they are now going to enforce these retirement ages more vigorously.

Forcing willing older workers out of work through job cuts and MRAs makes no economic sense‚ as this is likely to permanently remove thousands of older people from the workforce. This is because once out of work older workers are much more likely to remain unemployed than other age groups. Unemployment has a huge impact‚ not only on immediate income‚ but on the ability of those in their 50s and 60s to save for their retirement. This means thousands of older people who lose their jobs are likely to become dependant on long-term state support. It will also remove older workers from the workforce who would be vital to boost both labour supply and consumer demand as the economy moves out of recession.

Gordon Lishman‚ Director General of Age Concern‚ said:

“The Government must take action if it is to avoid thousands of willing older workers becoming job-cut casualties who are permanently dependant on state support. Once unemployed those over fifty are also much less likely to be able to find new employment. Yet the current training and support provided to the unemployed‚ and further recent proposals from the Government‚ do not target older workers.
 
“The Government must avoid the mistakes made in previous recessions and help older people as a group particularly at risk as unemployment levels continue to rise. Senseless Mandatory Retirement Ages should be abandoned immediately and the Government must go much further in targeting tailored advice‚ support and training to unemployed older workers‚ to help get them back into the workplace.Age Concern is calling for the Default Retirement Age  to be scrapped immediately‚ and for more tailored and immediasupport‚ training and advice for older workers - as Age Concern research shows unemployed older workers often don't get the help they need. The Government must also include firm proposals in the Welfare Reform Bill on alternative help for unemployed older people‚ as it acknowledges that the existing Pathways to Work model does not work effectively for older workers.

Fact file:

• Unemployed men aged 50+ only have a one in five chance of being in work two years later.
• The chance of older men finding future employment falls by a quarter for each year they are out of work.
• Experts like Lord Turner‚ the OECD and even the DTI's (now called DBERR) own economists believe scrapping retirement ages will be good for the economy.
• The DTI (now DBERR) estimates that scrapping mandatory retirement ages would add up to half a billion pounds to the UK economy.
• Age discrimination is the most commonly experienced from of discrimination‚ with nearly one in four people (23%) reporting that they have experienced it some form.
• Almost one in three (30%) of people say the level of prejudice against older people is higher now than it was five years ago.

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Notes to editors

1. In the last quarter‚ September to November‚ unemployment of up to 6 months increased by 29.8% for those aged 50 plus‚ 4.8% for those 25-49‚ 12.2% for 18-24 year-olds‚ and -0.9% for 16-17 year-olds.
2. Forcing people to retire earlier than they planned has a long term impact on their income - a man on typical earnings who leaves a Direct Contribution pension scheme one year earlier than planned will lose out on around £400 per year for the rest of his life.

Media Contact:
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