In order to help reduce labour shortages, the Government is now looking at encouraging older workers (those aged 50-65) who have left the labour market to return by offering them what it calls a 'midlife MOT'
As we highlighted in a previous article, over half a million workers permanently left the labour market during the Covid-19 pandemic (630,000 according to Government estimates), and this has considerably exacerbated the current issues relating to labour shoratges. The majority of those who left the labour market, moreover, were older workers aged 50-65 (386,096).
Midlife MOT
The idea behind a midlife MOT according to reports in the Guardian, "would [be to] assess finances and opportunities for various types of work.....The hope is that the MOT will also help identify opportunities for part-time or flexible work, mentoring and skills training."
According to recent analysis by the Office for National Statistics (ONS) carried out prior to the midlife MOT proposal, the main reasons why older workers are not currently in employment are as follows (amongst those who are open to returning to the labour market, some of whom cited more than one reason):-
- Various health reasons / disability / long covid / worries about pandemic - 38%
- Retirement - 31%
- Currently looking for work / about to start new job - 21%
- A change in lifestyle - 19%
- Caring responsibilities - 14%
- Financial support from partner / family - 11%
- Partner stopped working and I wanted to stop - 6%
- Don't have the right skillset - 2%
12% cited other reasons, whilst 6% stated that they did not want to work anymore.
The majority of those who said they were open to returning to the labour market (61%), were at the younger end of the range (aged 50-59), whilst money worries were cited as the main reason why a return to the labour market would be considered. Hence, the reason why the midlife MOT being contemplated is being designed to assess financial circumstances and what opportunities are available in the labour market to address them.
Flexible Working
As we highlighted in a recent article, a separate report conducted by the ONS found that flexible working is the key to encouraging those aged 50-65 who left the labour market during the Covid 19 pandemic to return to it, and this needs to be borne in mind in terms of midlife MOT proposal.
The ONS asked 43,250 respondents aged 50-65 what it would take to get them to return to the world of work. 58% of the respondents stated that they would consider a return to the labour market (86% amongst those aged 50-54), with flexible working the key factor for the majority of those respondents. In order, the responses were as follows:-
- Flexible working hours – 32%
- The right amount of pay – 23%
- The option to work from home – 12%
Cost of Living Crisis
In another recent article, we highlighted that new research by Totaljobs found that 22% of over 55’s have taken the decision to delay retirement due to the cost of living crisis, and that 30% are concerned that they may not ultimately have sufficient funds to retire on. As stated above, the cost of living crisis is one of the reasons why the midlife MOT being contemplated is being designed to assess financial circumstances and what opportunities are available in the labour market to address them.
Commenting upon the cost of living findings, the CEO at Totaljobs, Jon Wilson, stated: “Businesses need to look at the wider context if they are hiring over 50s or have a large proportion in their workforce. For example, it’s vital to set up facilities by which these workers can share their knowledge and experience with the younger workforce to ensure that knowledge is shared across the business.“
