"Unlocking the Potential"

The UK faces a perplexing challenge as it grapples with a substantial portion of its working-age population remaining detached from the labor market. Recent labor market data reveals a startling statistic: one out of every five individuals between the ages of 16 and 64 in the UK neither holds employment nor seeks it actively. What's more, the aftermath of the pandemic has ushered in a concerning trend, with the number of older inactive workers surging by 244,000—a figure surpassing the population of mid-sized UK cities like Portsmouth. While employment rates for most of the UK population have rebounded since the pandemic's onset, workers aged 55 and above have yet to experience a post-pandemic resurgence.

The UK's Performance on the Golden Age Index:

The latest installment of our Golden Age Index report sheds light on the UK's lackluster standing in comparison to several other advanced economies. The UK's performance on the Index has been less than stellar, trailing behind a number of its global counterparts. Short-term labor force data paints an even grimmer picture, indicating a further deterioration in the employment landscape for older workers within the UK. In stark contrast to the overall trend observed across most OECD countries, where the employment rates of individuals aged 55 to 64 have improved, the UK witnessed a modest decline. Reviving the participation of over-55s in the UK's workforce stands as a critical step in reversing the rising tide of inactivity and harnessing the wealth of experience offered by these individuals.

Key Insights from the Golden Age Index 2023 Report:

Our Golden Age Index is meticulously crafted, incorporating a weighted average of seven vital indicators that illuminate the labor market's impact on workers aged over 55 in OECD countries. These indicators span facets like employment, earnings, and training opportunities. Here are the primary findings gleaned from our 2023 report:

1. **Global Leaders:** New Zealand, Iceland, and Japan secured the top three positions on the Index. Notably, New Zealand and Iceland have maintained consistent rankings within the top five, while Japan made a remarkable ascent to join the elite top three.
2. **UK's Over-55s Lag:** The majority of the increase in inactivity following the pandemic in the UK is attributable to older workers. While employment rates have bounced back to pre-pandemic levels for most other age groups, older workers continue to lag behind.
3. **Regional Disparities:** Regional variations exist within the UK, with the South East region reporting the highest employment rate among over-55s, while the North East registers the lowest.
4. **Challenging Outlook:** Preliminary analysis of recently released data suggests that the UK's future standing on the Golden Age Index may deteriorate further. This is primarily due to the fact that while the employment rate for 55-64 year olds improved across most OECD economies between 2021 and 2022, it witnessed a slight dip in the UK.
5. **UK's Current Ranking:** In 2023, the UK occupies the 21st spot on our Index, trailing behind the OECD average. Notably, the UK lags behind other advanced economies when it comes to the participation rate of older workers in the labor force.
6. **Influence of External Factors:** Our analysis reveals that factors such as house prices, investment income, and NHS wait times exert a tangible impact on the employment rate among individuals aged 55-64. Moreover, a nationally representative survey underscores that long-term health conditions hinder two out of five individuals from engaging in full-time work, a concern that transcends the 55-64 age bracket and affects the entire labor force.

In conclusion, the imperative of reintegrating older workers into the UK's labor force looms large as the country grapples with labor market challenges. The Golden Age Index 2023 serves as both a spotlight on the UK's current situation and a call to action. By unlocking the untapped potential of over-55s and addressing the multifaceted factors influencing their labor force participation, the UK can chart a path toward a more inclusive and economically robust future.