Are the 50-plus recession proof – part 2?

The Sunday Telegraph had an article titled: “Keeping up with the Joneses”. I have to admit to an interest in this piece since I was interviewed by the journalist. My 20 mins on the phone distilled to about 3 lines of text and didn’t represent exactly what I said but that is the way of things.

The main thrust of the article, one I have not seen before, is that the US has much more positive attitude to ageing in the workplace than the UK. Now I come to think about it I instinctively think that is true.

The UK is portrayed as a place where reaching the age of 50 (in truth it is much younger than that) is a bit like catching the Black Death. This is certainly true in ‘management’ jobs but is probably becoming less pronounced in retail and lower grade clerical roles. As I discussed in it is not all rosy getting old the numbers about 50-plus employment are far from clear.

I suspect that we will increasingly see older people in the workplace. Not because of the government legislation, not because the CSR policies of companies but become it is becoming so difficult recruiting employable younger workers. Dick Stroud

Over-50s forced back to work to meet rising bills

This was the headline The Daily Mail – a paper with a high 50-plus readership – and was in response to the latest figures from the Office of Statistics showing that about 60% of the people who found a job over the last year were over 50.

Of the 296,000 jobs created over the last 12 months, 58% went to people born before 1958. The paper then made the jump of logic with this statement: “Experts said that the older worker boom will continue as financial problems force people to keep on working.”

Anyway, whatever the reason, the ONS figures show there are 7.8 million workers over 50 in Britain, which is the highest figure since records began - and the number of older workers is growing faster than any other age group.

The ‘experts’ in question appear to be the Age and Employment Network who are quoted as saying that even more older workers who want jobs, but cannot get them. Of the 1.2million people working over state pension age, they think a further 2.4 million want, or need, paid work.

The organisation is quoted as saying: "This is not just to pay for life's little luxuries, but for the basics of food, fuel and lighting."

In the same batch of news stories is another with the headline: “Puzzling jobs figures show over fifties account for majority of rise in employment”.

The puzzle is this, as explained by the head economist of the Chartered Institute of Personnel and Development.

Taken at face value the ONS figures suggest that most new jobs at present are going to people aged 50 and over – this age cohort accounts for almost 6 in 10 of the additional people in work last year. But this sits oddly with the observation that most new jobs are being taken by migrant workers – a group overwhelmingly aged under 40.

The CIPD reckons this conundrum is explained by the fact that migrant workers are taking the major share of new job vacancies but older workers are better able, than in the past, to hold onto their jobs. In jargon terms, over 50s employment is rising because of increased job retention not increased hiring of older workers.

Just goes to show you have to dig behind the numbers to get to the truth. I am not sure either The Mail or the CIPD know the real answer. Dick Stroud

Importance of over-50s to the employment market

Here is a disturbing Factlet.

The Office for National Statistics said the over-50s accounted for more than half the rise in employment seen in the three months to November - a period that coincided with turmoil on the financial markets. Officials said the economy created 175,000 new jobs over the quarter - of which more than 90,000 were filled by those over 50.

I can see the UK reaching a point where large parts of the economy are primarily staffed with Eastern Europeans and the 50-plus. Whilst this is happening the numbers of NEETS (young people not in education or employment) continues to rise.

There are lots of social, political, economic and marketing issues that result from these facts. I will leave it to you to draw your own conclusions. Dick Stroud

Older Brits work longer

The proportion of people working past the state pension age is running at record levels.

Men above 65 and women above 60 accounted for just under half of the 180,000 rise in employment during the 12 months to the end of May (Office for National Statistics).

The head of The Age and Employment Network, said: "Our impression is that many people are accepting jobs below their qualifications and capacities, often out of economic necessity - many stay in work beyond state retirement age because of the decline in incomes from defined contributions pension schemes”.

So are Brits working longer because they have or want to? As they dash into their 60s are they starting new and fulfilling careers or filling shelves in the local mall?

As usual the truth embraces all of these scenarios. My guess is that there are a few more people re-stocking shelves than becoming oldie entrepreneurs. Dick Stroud

Here is an economic puzzle for you to think about

How can a country have both problems with shortages of workers whilst at the same time the amount of money being spent by consumers remains weak? Normally, shortages of labour lead to increasing prices and increasing consumer expenditure.

Give up?

Well this is what is happening in geriatric Japan. As great swathes of high paid workers retire they are being replaced by much younger people who are paid less and hence spend less. Japan is experiencing labour shortages and falling/static consumer spending.

This phenomenon is something that Europe will experience. Strange stuff, the economic impact of the aging population. Dick Stroud

Grown-up enough to become an entrepreneur

Nearly half the US’s self-employed workers—7.4 million—are boomers (U.S. Department of Labor). This figure is expected to climb as people retire from one career to start another, lose their jobs or simply want the independence and flexibility of working for themselves.

"I am willing to bet that over the next 10 years, entrepreneurship is going to increase for people 50 and older, and especially for those 65 and older," says the head of research and policy at the Kauffman Foundation, which advances entrepreneurship in America.

This article from AARP gives good background to the subject.

This situation is exactly the same in the UK.

Let me give you a tip that is a sure-fire-winner; services supporting 50-plus start-up businesses and franchise companies are in for a boom time during the next decade. You will see a lot more companies like bizstarters hitting the streets. Dick Stroud