Men aged 50+ who have lost their jobs in the recession are at serious risk of being shut out of the labour market forever unless the Government takes urgent action in the Pre-Budget Report‚ a coalition of charities and employment organisations are warning in a new report out today.

New figures reveal that older workers are finding it harder than any other age group to get back into work after being made redundant‚ with fewer than 1 in 5 (18.7 per cent) of over 50s finding employment within three months‚ compared to more than 40 per cent of 25-34 year olds.1 Within the 50+ age group‚ men are clearly faring the worst‚ with long term unemployment (6-12 months) more than doubling over the last year.2

For many‚ this premature exit from the job market will effectively force them into an early retirement. With recent research showing that nearly three-quarters of over 55s want to work past the State Pension Age as the recession hits their pensions3‚ the coalition is concerned that this will condemn many people to an uncomfortable retirement and force them to rely on State benefits.

In contrast‚ women in this age group appear much better equipped to ‘bounce back’ from redundancy. Employment rates among 50+ women have increased and long term unemployment among this group has risen by only 23 per cent.  This could be due to their ability to take up part-time jobs or willingness to take lower paid roles service sector.4

Age Concern and Help the Aged‚ the Chartered Institute of Personnel (CIPD) and The Age and Employment Network (TAEN) are calling on the Government to use the Pre-Budget Report to provide a new package of support to get people aged 50+ back into work. This package should include:

• Intensive support for unemployed people aged 50+ within three to four months of losing their jobs to prevent them from becoming detached from the labour market.
• The job guarantee for unemployed people aged 18-24 once they have been in receipt of Jobseeker’s Allowance (JSA) for 9 months should be extended to JSA claimants aged 50+.
• Jobcentre Plus services should be ‘age proofed’ to ensure high quality back-to-work support for the over 50s. Personal advisers and others providing services need to have the awareness‚ skills and confidence to provide personalised support suited to the needs of older clients.
• Existing employer initiatives‚ such as Jobs Pledge and Train to Gain should include a commitment to meet Age Positive standards5
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  The coalition has also called for the immediate abolition of the Default Retirement Age which is being used by many employers to force willing and able workers to retire before they are ready.

Andrew Harrop‚ Head of Public Policy at Age Concern and Help the Aged said: “An end to the working lives of men in their 50s now will not only condemn them to an uncomfortable retirement‚ but will also deprive the recovering economy of their skills and experience‚ just when they are most needed. The Government must take action in the Pre-Budget Report to avoid creating a lost generation of older workers.”

Chris Ball‚ from TAEN - The Age and Employment Network‚ said: “We should learn from the recessions of the 1980s and 90s which resulted in nearly four out of ten men aged between 50 and state pension age being out of work.  A large proportion of those affected never worked again and were parked on incapacity benefits until they reached state pension age. Recessions tend to follow similar trajectories. As this one drags on it is possible that history will be repeated with growing numbers of older workers unable to get back into work. This must not be allowed to happen.

“We need intensive back-to-help support to be available to older jobseekers - in particular older men who are increasingly emerging as the main sufferers. This should start at the latest after three months of unemployment‚ instead of the six months which presently applies. Such support would address the additional age-based barriers older workers face in getting back to work - a problem clearly emphasised by TAEN's Survey of Jobseekers Aged 50+ .

“I believe the PBR would be an ideal opportunity for the Government to announce employment support services fit-for-demographic purpose in our ageing society.”

Dianah Worman OBE‚ CIPD Diversity Adviser said: “Amid concerns of a lost generation‚ the Government has rightly concentrated efforts on the young. But as we approach the tipping point of claimants entering long-term unemployment we should ensure that the economy doesn’t lose out on the experience and skills of an older generation.

“For older workers it is far too easy for long-term unemployment to turn into permanent disengagement from the labour market. A job guarantee for older workers would send a signal that these people cannot and should not be resigned to spend the rest of their life reliant on the state. When the labour market picks up‚ employers need older people in work‚ not languishing on the scrapheap.”