Older People Face Being Forced Into Early Retirement Without More Help To Find Work
August 11 2009 - Long-term unemployed older people are at risk of never working again
unless tailored support is offered to help them back into work, a new TUC report warns today (Tuesday).
The report draws on findings from the English Longitudinal Study of Ageing (ELSA) which shows that unemployed people over 50 are ten times as likely to still be out of work after two years than back in work.
The briefing also warns that a period of long-term unemployment for an older person massively increases their chances of never working again. This is particularly the case for men, with every year of unemployment making it 24.3 per cent less likely that they will find work again. Almost half of all unemployed people over 50 today have been out of work for over a year.
The TUC report that says that being forced into early retirement can lead to social exclusion and often leads to poverty in retirement, as people will not have built up sufficient pension provision.
The unemployment rate for people over 50 is currently 4.3 per cent, lower than the overall unemployment rate of 7.8 per cent, and far lower than youth unemployment (18-24 year olds) which is 17.3 per cent. As a result the Government has rightly prioritised tackling youth unemployment, as joblessness at a young age can permanently a career, says the TUC.
But the TUC warns that the Government must also look at tailored support for older people to prevent them from being forced into early retirement against their will.
The TUC is particularly concerned with the 'work for your benefits' scheme for the long-term unemployed, proposed in the Welfare Reform Bill. The scheme will force people to do compulsory work experience, earning as little as £2 per hour, which will do nothing to improve the job prospects for older workers, most of whom already have plenty of skills and experience.
The Government's job guarantee, delivered by the Future Jobs Fund, in which employers receive subsidies for taking on an unemployed person for at least six months, is a far better way to tackle long term unemployment says the TUC.
The report calls for the job guarantee, which is currently on offer to some young people, to be better funded and extended so that older people can benefit from the scheme too.
TUC General Secretary Brendan Barber said: 'In previous recessions people complained about the injustice of working women keeping men out of jobs. Sadly today, people are saying similar things about older workers causing youth unemployment.
'The idea of forcing older workers out of the labour market is morally offensive and would cause economic chaos. The UK would instantly lose vital skills and experience and young people would not necessarily be in a position to take up their jobs.
'It's true that the young people have been hit hardest by the recession and it's absolutely right that the Government targets getting them back into work. We cannot afford to lose another generation to mass unemployment, as happened in the 1980s.
'But we must not forget older people, who have the skills and experience needed to get us through this recession. The Government must introduce tailored support for older people to prevent them being forced into retirement against their will and face old age in poverty.'
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