According to the latest labour market figures for April-June 2022, there were 5,640,000 men and 5,049,000 women aged 50 plus in employment, a difference of more than half a million – 591,000.
This gap has widened since the pandemic by over 100,000 when, as of January-March 2020, there were 5,596,000 men and 5,108,000 women over 50 in the workforce.
It means that over that period, 59,000 women over 50+ have dropped out of the workforce compared to a modest rise in the number of working men older than 50.
Stephen Lowe, group communications director at retirement specialist Just Group, said: “Before the pandemic, there were still fewer women than men aged over 50 in the labour market, but the gap was narrowing due mostly to the recent rises in State Pension Age.
“Today’s figures show that trend has been thrown into reverse since the pandemic, with a net loss of women aged over 50 in the workforce. The data highlights the need for the government and employers to provide more proactive support for older workers, especially women, who want to work.
“Our research finds that retired women over 55 are more likely than men to drop out of the workforce because of ill-health or to provide care, and much less confident than men that they could find paid employment if they wanted to.
“In a tightening labour market attracting and retaining these ‘silver workers’ provides employers with a ready-made experienced workforce that has a lifetime of skills and experience to offer. If these older workers, especially women are finding it hard to stay in the workplace or are choosing not to return, then perhaps as employers we need to reflect on why and what we can do to entice them back.”
Kate Smith, Head of Pensions at Aegon comments: Millions walking a financial tightrope as gap grows to 4.7%* between inflation and wages means a pay cut for many
“On the eve of inflation predicted to reach double figures, this morning’s ONS figures paint a gloomy picture with a record fall in real regular pay as wages simply fail to keep pace with soaring inflation, with the gap now at 4.7%. In the middle of an ever tightening cost of living of crisis, this means a pay cut for millions of workers as households are forced to walk a financial tightrope with everyday essentials such as food and fuel rising exponentially in cost. This will undoubtedly force many working-age individuals into a corner as they are forced to make difficult day-to-day decisions about how to stretch their finances to cover everyday expenses.”
Intergenerational pressure cooker begins to boil over
“Aegon UK research carried out earlier this month shows an emerging split between different generations, with 32% of 18-34 year olds saying that they are worried about their short-term finances compared to 19% of over 55 year olds. We are beginning to see the pressure cooker of intergenerational tension bubble over as pensioners are set to benefit from a double digit increase, and potentially the highest ever, state pension increase thanks to the triple lock. With inflation persistently outstripping earnings, this looks set to be the deciding factor for determining the value of the state pension, and a major income boost for pensioners. In contrast the majority of workers have failed to see an inflationary matching pay rise this year, with many receiving no pay increases at all and with many forced to adopt a short-term approach to their finances.”
*Based on CPI at 9.4% and growth in regular pay (excluding bonuses) at 4.7%
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