Nearly one million UK workers aged over 50 are struggling to find employment, as new labour market figures point to a sharp rise in joblessness among older age groups and growing pressure on employers to manage costs and workplace flexibility.
Fresh analysis of the latest Labour Force Survey shows that 917,000 people aged between 50 and 66 are currently out of work and unable to secure employment. When those aged 66 to 70 are included — many of whom remain economically active despite being eligible for the state pension — the total rises to just under one million.
The data suggests a 22pc increase in joblessness among over-50s since 2023, a trend industry figures say is being driven by a combination of rising employment costs, tighter labour conditions and shifting workplace expectations.
Business groups have pointed to the combined impact of recent increases in employer National Insurance contributions and the implementation of the Employment Rights Act, arguing that the cumulative burden is making firms more cautious about hiring and retaining older workers.
The legislation has introduced expanded workplace rights, including enhanced ability for employees to request changes to working hours or location. While these measures are widely seen as beneficial for flexibility — particularly for older workers managing health conditions or caring responsibilities — employers warn they can also add complexity at a time when payroll costs are already rising.
Some employers say they are increasingly balancing such requests against tighter margins and persistent skills shortages, with hiring decisions becoming more selective as a result.
At the same time, broader labour market conditions have softened in several sectors, with recruitment activity cooling compared with post-pandemic peaks. Analysts suggest that older workers, particularly those returning after a period out of employment, may be disproportionately affected by the slowdown.
The figures highlight a long-running structural challenge in the UK labour market around the employment of older workers. While participation among over-50s has improved over the past decade, concerns remain about early exit from the workforce due to ill health, redundancy, or difficulty re-entering employment after career breaks.
Some employers argue that rising costs — including tax, regulatory compliance and wage pressures — risk discouraging flexible hiring practices that have traditionally supported older workers’ participation.
However, supporters of the new employment rights framework argue that greater flexibility and stronger protections are essential to keeping older workers engaged in the labour market for longer, particularly as the UK population ages.
With nearly a million over-50s now out of work or seeking employment without success, policymakers face renewed pressure to reconcile labour market flexibility with rising economic constraints — and to address the growing gap between those willing to work later in life and the opportunities available to them.
Rod Flavell, CEO at FDM Group, said: “The scale of untapped senior talent is detrimental to UK growth, leaving senior professionals with extended spells out of the labour market, and skills gaps that are hard to bridge due to rapidly evolving technology and working norms.”
“From what we’re seeing in the market, these experienced staff are significantly underutilised, especially during a period where businesses are crying out for skills in fast growing areas such as AI.”
“The increase in applications from over-50s to our Returners Programme demonstrates a strong appetite to re-enter the workforce, but that must be aligned with the training in the skillsets that businesses need most. Our latest research found that over half of organisations are only just beginning to explore AI adoption, while 32% highlight skills shortages as a key barrier to hiring.”
“If given access to the right upskilling pathways in areas such AI, and inclusive hiring processes, over-50s are exceptionally well placed to help plug these gaps and strengthen the UK’s workforce both now, and for the future.”
For SME employers already grappling with rising payroll costs, the challenge is even more acute, making it essential to rethink how experienced workers are supported, trained and retained.
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