Older workers are leaving the labour force in record numbers, according to new research from a leading think tank.
The number of people aged 50 to 64 on out of work benefits has reached an all-time high of 2.15 million, according to analysis of the latest figures by the Centre for Social Justice (CSJ).
Since the Autumn Budget, more people aged 50 to 64 left company payrolls than any other age group except for 25 to 34s.
This has prompted fears that the jobs market is getting tougher for thousands of older workers as well as for young people and graduates.
Analysis by the think tank found that over 80,000 people aged 50 to 64 left company payrolls since November 2024, while out of work benefit claims rose by 51,000. However, this builds on a longer-term trend that has seen the number of older workers signing on soar by over 600,000 since the pandemic.
Fewer than two in a hundred over 50s on benefits are required to seek work, down from roughly one in ten over the same period.
The CSJ warns that there is a ‘midlife crisis’ facing the economy, with rising numbers of people in the golden years of their lives facing financial instability, loneliness and poor health.
In response the think tank has launched a major new commission of experts, politicians and public figures who will examine what is driving this phenomenon and consider policies that can be adopted to reverse the wastage of talent and experience.
Analysis by the Institute for Employment Studies has found that higher levels of working age economic inactivity are costing the Exchequer at least £16 billion per year in lost tax receipts, more than the entire annual budget for the Ministry of Justice.
Yet the consequences for individuals of detaching from the labour market and wider society are even more concerning.
The cross party Commission will be chaired by prominent wellbeing brand founder Liz Earle MBE. A Call for Evidence has been launched to gather the views of members of the public.
Commissioners include broadcaster Angela Rippon, model and TV personality Penny Lancaster, Labour MP Carolyn Harris, Conservative MP Joe Robertson, former Shadow Work and Pensions Secretary Jonathan Ashworth, Founder and Chair of the Hallmark Foundation Avnish Goyal CBE, organisations including Lowell, and representatives of hundreds of small charities with direct experience supporting people in their 50s and 60s. More commissioners are set to be announced.
Find out more about the Commission here.
