New research by Rest Less based upon data compiled by the Office for National Statistics (ONS), has found that the number of over 50's who are now working on a part-time basis has reached a record high.
Part-Time Working Increase
In their research, Rest Less report that there has been a 56% increase in the numbers of over 50's who are now working part-time since 2003, which has now reached 3.6 million. This represents a new record, and an increase of 12% alone since 2021. Furthermore, of those that now work part-time in the labour market, 42% are over 50 years of age - a proportion that is significantly higher than the proportion they make up of the total workforce (a third)
Commenting on the statistics, the charity director at Age UK, Caroline Abrahams, points out: "Flexible working, including the ability to go part-time when needed, is really important to many 50+ workers. But part-time working isn’t always a sign of flexibility: many older workers want to work full-time but cannot find a suitable role, so tackling ageism to make sure that people can access appropriate opportunities should go hand-in-hand with encouraging flexibility."
Pandemic Impact
As we highlighted in a previous article, 386,096 over-50s left the labour market during the Covid-19 pandemic, with former Governor of the Bank of England, Lord Mervyn King, stating: "A legacy of Covid is that around half a million people have dropped out of the labour force. Their return would ease inflationary pressures and boost output. But there is no pot of gold at the end of the rainbow." Whilst ill health was a contributory factor in the decision of some of those who decided to leave the labour market, the main reason was a life style choice, in part inspired by Covid-19, to simply retire early.
Cost Of Living Crisis
When the ONS looked into what it would take for the over 50's who had left the labour market to return, 58% said they would consider a return, with the bulk of that 58% stating that flexible working was the key. Nevertheless, soon after this research was completed, the cost of living crisis hit and many of those over 50's who had retired decided to return to the labour market. As we highlighted in this article, those that decided to return found that they could no longer afford to stay retired.
Return To Labour Market
Back in March 2023, the Institute for Fiscal Studies (IFS) reported: "New data from the Labour Force Survey show signs of a possible reversal [in the economic inactivity of over 50's]....In October–December 2022, there was a sharp and statistically significant uptick in 50- to 64-year-olds moving out of inactivity and back into the workforce."
New Research Consistent With Rest Of Data
Given the above, it comes as no surprise that the new data from the ONS and Rest Less has found that there has been a 12% increase in the number of over 50's working part-time since 2021. It is consistent with the fact that many have found that they cannot afford to retire permanently due to the cost of living crisis, and a preference that if they did need to carry on working, then it would be in some kind of flexible working arrangement (including part-time working).
Some Would Prefer To Work Full-Time
Nonetheless, as Caroline Abrahams has pointed out (see above), many of those that are working part-time would prefer to be in full-time work. The severity of the cost of living crisis has been such, that many need to work full-time to survive financially. Moreover, a lot of the part-time roles that are available is of low quality.
Moreover, the CEO of Wise Age, Chris Walsh, points out that: "A large proportion of these people won’t be able to get full-time jobs because of institutional ageism, particularly in the recruitment industry. They want full-time work and they need it because of the ensuing poverty that arises because of long-term part-time working."
Furthermore, Walsh adds: "There are around about 1 million...people who are outside the system. They don’t even have part-time work but want to work and are actively looking for work. They’re not registered with the DWP because they get pension credit or because they’ve got savings or a partner within work. The DWP won’t give them any financial support so they don’t register it."
