Partner Article

Early retirees set to return to labour force — cost of living crisis drives 'Great Unretirement'

The number of over-60s registering as job candidates with Randstad UK has risen by 160 per cent of the long-running average, according to the recruiter.

Randstad says it expects roughly 155 candidates who are over 60 to apply to the agency every year. This number rose gradually until 2018, when it peaked at 180, then fell to 150 in 2020. However, in the last 12 months, 400 people over the age of 60 have registered with the recruitment agency to look for work.

Victoria Short, chief executive of Randstad UK & Ireland, said: “These candidates are not all necessarily returning to the workforce — some may have never left. It may be that some have been employed but with the groundswell changes we’ve seen in the job market, they are now looking for alternative or even additional employment. Working remotely and spending less time with colleagues throughout the pandemic has weakened many of the ‘social’ ties and loyalties between employees and employers, and between colleagues.

“However, it seems likely that, given the sharp rise in over 60s registering with us in 2022 — 160 per cent above the long running average — many are returning to work after retiring, or now looking for second jobs.

“Inflation is running at levels not seen for 40 years. Living costs are soaring. While an affordable early retirement might have looked realistic a couple of years ago, it might not be an option any more. People’s finances are driving them back into work.”

The sectors with candidates of greatest age, on average, are Financial Services and Education - with one supply teacher working with Randstad being almost 86 years-old, having originally registered with Randstad at the age of 77.

The data chimes with figures from the Office for National Statistics (ONS) showing thousands of early retirees who gave up work during the pandemic are returning to the labour market as inflation eats into their savings.

Tens of thousands of 50 to 64 year-olds “unretired” in recent months, in a much-needed boost to Britain’s workforce. ONS figures found 75 per cent of inactive people aged 50 to 59 said they would consider returning to work in August 2022, up from 58 per cent in February. 84,000 fewer working age people have classed themselves as retired.

Victoria Short said: “At a national level, this boost of an available and motivated workforce will help to manage the labour shortage that has been stoking inflation. But there are multiple other benefits. Customers can appreciate interacting with people who are of a similar age or life stage as them, for example; and a more age-balanced workforce can offer a lower risk of fast staff turnover than a primarily very young workforce. Then there is the sharing of knowledge and experience within the workplace - what works, what doesn’t for customers or colleagues. I think we all remember people in our own careers, particularly in the early years, who were generous in sharing that type of knowledge and how invaluable it was.

“If you choose and are happy to continue to work in what may have been traditionally thought of as ‘the retirement years’, there are many positives for the individual too, apart from the obvious financial ones.

“People like Joe Biden, America’s first ever octogenarian president, and Harrison Ford — about to play Indiana Jones again at the age of 80 — are showing the rich possibilities many of us will have as we live and remain active for longer. Multiple studies show that health and happiness in later life corresponds with a sense of purpose. So the superagers are getting more money and potentially, health and happiness. Looks like a good deal all round.”

This was posted in Bdaily's Members' News section by Raoul Duke .