How over-50s have pushed employment to a new high
‘Not saved enough for retirement’
THE number of people in work has hit a new high with an army of over-50s driving the hiring spree, official figures showed yesterday.
Employment rose by 444,000 last year to a record 32.6million, the Office for National Statistics said, with those aged 50-plus making up 70 per cent of the increase.
Unemployment now stands at just 4 per cent – the lowest level since 1975 and around half the jobless rate seen in the eurozone (7.9 per cent). Female unemployment is at 3.9 per cent – the first time it has ever been below 4 per cent.
The statistics, released yesterday, showed the number of working over-50s rose by 313,000 in 2018 – the equivalent of 858 a day. That included 106,000 workers aged 65 or over. There are now 10.4million over-50s in work – up 30 per cent from just under 8million a decade ago. Almost half a milfinancial lion women aged 65 or over have jobs, which is nearly double the 258,000 in work at the end of 2008.
Experts said many people are working for longer because they cannot afford to retire due, in part, to rises in the female state pension age. But others are choosing to stay in work and can no longer be forced out at 65 following the abolition of the default retirement age in 2011.
Tom Selby, from savings and investment firm AJ Bell, said: ‘There is little doubt people are not just living longer, they’re working longer as well. While each individual story will be different, there are basically two categories: people who choose to work into their later years and those who are forced to.
‘For those making a choice, the ability to work longer, perhaps to supplement their retirement income, will likely be a hugely life enhancing benefit. For those who are forced to work longer for reasons, the experience is likely to be much less appealing, particularly where they have long hours or a physically demanding job.
‘For anyone who hasn’t saved enough for retirement, working until you drop will now be a grim reality.’
The ONS report also revealed that there are now 870,000 vacancies – the highest level on record. This includes 65,000 in manufacturing, the most since 2004, as British industry continues to hire despite the prospect of thousands of job losses at firms such as Honda and Jaguar-Land Rover.
Employment minister Alok Sharma said: ‘While the global economy is facing many challenges, particularly in sectors like manufacturing, these figures show the underlying resilience of our jobs market.’ He added that the increased female employment rate was ‘excellent news’.