‘Ageist’ companies are to blame for over-50s leaving the workforce, say MPs

Over-50s are dropping out of the workforce because of “ageist” companies, MPs have claimed.

A report from the Labour-led Business, Energy and Industrial Strategy select committee blamed businesses for the recent exodus of older workers, saying unfriendly policies were the cause rather than a wave of early retirement.

Lucy Standing, co-founder of Bravestarts, which provides over-50s career support, told the committee that discrimination against older workers is “rife” and said outdated recruitment processes were blocking people from making career changes.

A lack of flexible working was one of the main reasons why early retirees were reluctant to go back to work, according to a poll commissioned by the committee. 

The finding contrasts with the idea that many older people have dropped out of the workforce simply to retire. As he was encouraging people back to work earlier this year, Chancellor Jeremy Hunt said later life “doesn’t just have to be about going to the golf course.”

Employers “must assess whether their recruitment practices and workplaces are ‘ageist’”, a report by the business committee published on Friday said.

The number of people aged 50 and 64 who are economically inactive has surged by 318,000 since the pandemic began to a total of 3.5 million.

Mr Hunt has made reversing the trend a key priority, announcing a range of measures intended to make it easier for older people to work in his Budget last month.

The committee called on the government to introduce Japanese-style “silver human resource centres”, which give job support to the over-60s and help them build up new skills. These job centres help retirees find part time work.

In autumn, the select committee travelled to Japan to learn from another country that is grappling with the challenges of an ageing population and declining birth rate.

Darren Jones, chair of the committee, said: “Our shrinking and ageing UK labour market, and the lack of political leadership on this issue, is holding back economic growth. What we have now is outdated and static, while working practices move on.”

The committee also called for the creation of a new ministry for labour and a new workers’ rights watchdog.

Mr Jones said: “We won’t be able to move the dial on economic growth in our country until we invest in, support and make the most of the potential of every worker across the UK.”