Job satisfaction was a key reason why people in their 50s left the workforce during the coronavirus pandemic, according to research from Phoenix Group.
Think tank Phoenix Insights found that the proportion of economically inactive 50 to 64 year olds increased significantly - peaking in May to July 2022 at 27.7 per cent.
It has remained high in the post-pandemic labour market.
Prior to the pandemic, economic inactivity among 50 to 64 year olds had reached a record low of 25.2 per cent, having reduced every year since the mid-1990s.
The research analysed annual job satisfaction data from 2009/10 to 2020/21 and found those leaving the workforce in their 50s during the pandemic experienced declining satisfaction in the years running up to their departure, well before state pension age.
Nearly six in 10 (59 per cent) people in their 50s feel older workers are being left behind by employers.
Over a third (34 per cent) of workers in their 50s said their job was unfulfilling.
Catherine Foot, director of Phoenix Insights, said:“Huge numbers of people in their 50s dropped out of work during and immediately after the coronavirus pandemic and our research suggests job dissatisfaction played a big part in this.
“While some over-50s have returned to work over the last year, the pace of return has been slow with many remaining dissatisfied or facing barriers and insufficient support to re-enter the workforce.”
Phoenix Insights’ polled 1,000 people over 50 and additional focus groups too.
The research found that people in their early 50s were more likely than older age groups to respond to improvements in practices and policy interventions designed to encourage them to return to work.
Participants in the focus groups said they enjoyed their work earlier in their careers, but experiences in the workplace became increasingly negative with age.
Foot said: “Good quality, satisfying jobs matter to people of all ages. For those over 50, we know that it’s particularly important that jobs provide flexibility, support for people with caring responsibilities and health conditions, and opportunities to develop skills.
“We also know from our research how crucial it is that businesses tackle what can be quite subtle but deeply ingrained ageism in their recruitment process.”
She explained that ensuring people remain in good work later in life can be hugely beneficial for an individual’s finances and wellbeing.
“With labour shortages still a major issue in our economy, it is also a key element to boosting the UK’s post-pandemic productivity and economic growth for the years ahead,” she added.
In contrast, job satisfaction was increasing slightly for those who chose to remain in work.
Adviser view
Elsewhere, Tim Morris, IFA at Russell & Co Financial Advisers, said he noticed a decline in job satisfaction in the over 50’s during the pandemic.
“Much of this was due to the change in working patterns and increased remote working/reliance on technology,” he said.
“As someone who struggled in the pandemic myself, I totally appreciate how change can impact someone. Even if you’ve previously coped well with it for most of your life.”
Excluding those below 18, who are often in full-time education, the increase in economically inactive 50 to 64 year old’s is the biggest contributor to the UK’s economic inactivity and subsequent decline in productivity, he explained.
“In the last year or so, a few of my clients who took early retirement have returned to work. Mostly working less hours and in a different role or sector than before.
“Many of this age group, who are classed as part of the ‘baby boomer’ generation, are in a better position financially than preceding generations. And currently looking better off than many of the subsequent generations.”
He argued that this is a trend that is unlikely to continue - especially with state retirement age likely to increase further.
Meanwhile, Philip Milton of Philip J Milton & Company said there is no simple answer.
“More people can afford to ‘retire’ and some are (but also some who did have are bored and now are returning to work),” he said.
“The jobs’ market is still tight so the opportunity to move-around is easier as a result with enticements to make people move.
“The public sector is also bigger so it has taken staff from the private sector where ‘it’ can afford to pay what it takes to fill the ‘hole’.”
sonia.rach@ft.com
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