Over 50s Hit Hard By Recession

New figures released by the Office of National Statistics (ONS) reveal the number of long-term (6-12 months) unemployed over-50s has increased by 135 per cent, the highest increase among all age groups. Men are being hit hardest among this age group, with the numbers of long term unemployed increasing by 185 percent, the highest increase among all age groups.

Andrew Harrop, Head of Public Policy for Age Concern and Help the Aged, said:

"These figures confirm our fears that men in their 50s are being hit hard by the recession, with the number of long term unemployed men over 50 nearly trebling over the past year.

"Employers ageist attitudes mean many older workers simply aren't getting the opportunities to return to employment and research shows the longer it takes, the more unlikely it is they will ever get back to work.

"An end to the working lives of men in their 50s now will not only condemn them to an uncomfortable retirement, but will also deprive the recovering economy of their skills and experience, just when they are most needed.

"The Government's Employment White Paper shows it has listened to the plight of the over 50s. We hope the package of support they have promised will help prevent a lost generation of older workers becoming trapped in long-term unemployment."

Men aged over 50 hit hardest by unemployment

According to a new CIPD report.

Older workers are finding it tougher than other age groups to rejoin the job market after being made redundant. Fewer than one in five over-50s find employment within three months of losing their job, compared to more than 40 per cent of 25 to 34 year olds, official figures show.

Men in the 50-plus age band are faring the worst, with long term unemployment - being jobless for more than six months - doubling in the age group in the past year. This effectively forces men into early retirement, says the alliance of organisations.

In contrast, the rate of long term unemployment among women aged over 50 has only risen half as much, possibly due to their ability to work part-time or willingness to take lower paid roles in the service sector.

Existing government and employer initiatives, such as the Job Guarantee scheme, focus on helping 18 to 24 year olds into employment.

Dianah Worman, the CIPD’s diversity adviser, suggested a similar scheme could help older workers. “For older workers it is far too easy for long-term unemployment to turn into permanent disengagement from the labour market. A job guarantee for older workers would send a signal that these people cannot and should not be resigned to spend the rest of their life reliant on the state.”

Andrew Harrop, head of public policy at Age Concern and Help the Aged, said: “An end to the working lives of men in their 50s now will not only condemn them to an uncomfortable retirement, but will also deprive the recovering economy of their skills and experience, just when they are most needed. The Government must take action in the Pre-Budget Report to avoid creating a lost generation of older workers.”

We would also argue that there must be more emphasis on flexible working which is what the 50`s say that they want. We need to stop thinking that this is all about creating masses more of 40+ hour a week jobs.

Impact of the recession on older people

Dick Stroud has been at it again! This time his company joined with Mature Insights to undertake a survey of over 1,600 older people, using Mature Time’s national newspaper and web site. The task was to examine the impact of the recession on the UK’s over-50s.

Amongst the findings were:

Over 25% say the recession has had little or no effect with a third reporting that they have not changed their spending patterns.

Over 60% say the recession has resulted in them only making a few cutbacks in their expenditure.

Despite older people holding 80% of savings and investment assets in the UK, the fall in interest rates has seriously affected only 20% of respondents.

Not all of the news is so positive - 12% have cut back drastically on spending.

The banks and the Labour Government are blamed for the economic problems resulting in a significant swing to the Conservatives and minority parties.

The over 50's are giving far more financial support to their families than they are receiving.

Charitable donations have been very badly hit by the recession.

If you want to read the detail then all you need to do is download the report.

Employment figures

The latest figures from the Office of National Statistics confirm what we have been hearing from other Western countries, namely, that the current recession is hitting younger people more so than older people. Employment is up overall in the last year by 0.1% for the fifty pluses to SRA, and up 3.6% for those over SRA. The biggest increase is from women in employment. For the over 50's it was 0.2% and for post SRA 5.8%. For men it was a fall of 0.1% for the 50+'s and 0% for post SRA. The 18-24 shows a decrease of 4.6%. This is not to take away from the concern currently being reported by Age Concern and Help the Aged by older people worrying, with much justification, about future employment prospects of any kind. This simply means that the predicted impact of the recession on older workers has not been anywhere near so dramatic as some have predicted.

Boomers go back to basics

New research from Age Concern and Help the Aged shows that seven in ten older people are resorting to thrifty skills picked up during the war and post-war years to help them save money and make resources go further during the recession.

Trying to fend off the blows of the economic downturn‚ 70 per cent of people over 50s say they are getting back to trusted money-saving strategies learnt during previously tough times or handed-down from their parents. The survey shows:

• 91 per cent of people over the age of 50 say they budget carefully and spend within their means
• 87 per cent cook from scratch rather than buying ready-made meals
• 71 per cent reuse leftover food
• 54 per cent shop for food in the reduced section or buy reduced food at the end of the day
• 50 per cent sew or mend items for themselves or others
• 29 per cent grow their own vegetables.

The research also shows nine in ten older people believe the ‘make do and mend’ mentality could help younger generations weather today’s recession. Younger people share the same belief with 84 per cent of people aged 18-24 thinking they could benefit from skills handed down from tough war and post-war years.

How old is 'old'?

When are you actually old? A recent survey in Ireland found that eight out of 10 maintained that they would regard old age as starting at 80. One-fifth said old age began at 65. Interestingly, the people in that latter group were 23 per cent more likely to be male than female.

A significant proportion of respondents in the survey, conducted by Ask Chili for the website, who are still at work see the recession affecting their retirement date, with almost half (47 per cent) saying they expect to postpone their retirement due to the recession. Just over half of those who are already retired believe their income will fall over the next five years. Of these, half expect a fall of up to 25 per cent.

In the survey, 59 per cent believed that 50-somethings are down-ageing (engaging in activities which are traditionally seen as pursuits of younger people) by taking exotic holidays, buying sports cars or motorbikes, taking gap years abroad and so on.

Today’s over-55s are definitely interested in how they look. Putting effort into one’s appearance, they agreed, is a sign of continuing to engage with the world and maintaining a sense of dignity and self respect.

A huge 98 per cent agree that the internet is “fantastic – it has revolutionised my life”. They use the internet primarily for shopping and staying in touch with family.

Sex and relationships remain especially important to the over-55s. Just under half have suffered a loss of libido. Nine out of 10 believe sex is part of a healthy relationship. Only 10 per cent have ever used prescribed drugs to increase their sex drive.

Among those who live on their own, just over half are hoping to meet a new partner. Of these, one in five use online dating while others rely on more traditional methods such as social contact and meeting people through friends.

Do you understand the present credit crisis?

Watch this! It explains it with wonderful graphics. It is American but stay with it.


The Crisis of Credit Visualized from Jonathan Jarvis on Vimeo.

Latest data on over 50's and the recession from the US

Statistically, the over 55 workforce unemployment is running at a lower rate than other age groups. however, according to the latest AARP report they are likely to stay unemployed longer or just drop out of the workforce altogether.

"Long-term unemployment tends to be a greater problem for older job seekers than their younger counterparts," says a report from the AARP Public Policy Institute.

According to December 2008 labour statistics cited by the report, 32 percent of job seekers aged 55 and over remained unemployed for 27 weeks or more. Compare that to 23 percent of those ages 25 to 54, and 18 percent of those under age 25.

But there's a concern that once unemployed, the Baby Boomers are just dropping out of the workforce for good.

"Many older workers who lose their jobs drop out of the labour force rather than continue what can be a long and fruitless job search. Some of them say that they would like to be working, even though they are not looking for a job," said the AARP report.

We are still awaiting the latest analysis from our unemployment figures.

More data from the US on job losses still suggesting that the recession is hitting younger people most

In the Autumn, drugstore chain CVS Caremark (CVS) cut some 800 jobs in Northern California after acquiring Longs Drugs, a Walnut Creek (Calif.) pharmacy rival. Despite those cuts, the company continues to recruit baby boomers and other older workers to staff stores across the country. "We need their expertise," says Stephen Wing, director of workforce initiatives at CVS Caremark in Woonsocket, R.I. "When you're in your 50s and 60s, you're in your prime."

Companies nationwide are laying off workers by the tens of thousands. But many are trying to spare the post-55 set from the axe, a reversal of the top-down trends in past waves of layoffs. They're being driven by legal concerns—since boomers are in a protected age group—and by a need to keep experienced hands in place to keep the companies running and positioned for an upturn. "Seniority matters," says Marcie Pitt-Catsouphes, director of the Sloan Center on Aging & Work at Boston College.

All age groups are being hit by cuts now coursing through Corporate America, but government statistics so far suggest that the burden is falling far more heavily on younger workers. The unemployment rate among workers 55 and over is not only lower than for the younger set, but it has risen less sharply. Joblessness for those 55 and older jumped to 4.9% in December 2008, a rise of 1.8 percentage points from the 3.1% level of December 2007. By contrast, for their younger colleagues, those aged 25-54, the rate climbed to 6.3% in December, compared with 4% a year before, a sharper rise. The different impact comes into even more stark relief with the government's measures of employment. The number of people employed in the younger set has fallen from 100.5 million in December 2007 to 97.7 million as of last December—a 2.9% slide. By contrast, the number of those working among the 55 and older set has actually risen by 878,000, climbing to nearly 29.1 million.

Who is suffering most in the recession?

We are getting very different data from the US and the UK at present. We have already posted on a recent Merrill Lynch report from the US stating that the younger generations are being hit the most by the recession. Again The New York Times reports that the age group 35-44 lost over a million jobs, the age group 55-64 gained over half a million over the past few months. Yet in the UK Age Concern are reporting that in the last quarter unemployment among those aged over 50 was up by 27 per cent. For a worker aged 24 to 49, the increase was just eight per cent.

The survey by ICM, commissioned by Age Concern, found that half of those over 55 are worried that they are more at risk of losing their job because of their age. We can understand the worry but worry is not always reflected by the facts.

So many groups have their own political angle on this issue and it is difficult to truly analyse as it is usually not possible to get access to the actual research data without paying large sums of money. We rely on what we read in newspapers and online journals. Please let us know of any new data that you come across in relation to this crucial topic.

Oldest Americans Gain Jobs Even As Other Age Groups Suffer Losses

We are often asked our opinion as to whether older workers will suffer more in the recession like they did in 1990. As no 2 economists seem to agree on anything these days - who are we? Having said that our gut reaction is that they might suffer less than younger generations so it was fascinating to pick up a report from the US today which claims that the slowing economy has dampened the demand for older workers, but not much. The number of workers 55 and older is still growing significantly while those younger than 45 struggle with widespread job loss. This report shatters the myth that older workers are particularly vulnerable in this economic downturn. The fact is pared down companies may increasingly rely on seasoned veterans to get them through the downturn. They may cost more in salary and benefits, but their experience and knowledge make them highly valued. The preference for older workers has also resulted in a significant drop in the amount of time it takes job seekers 50 and older to find new positions. The median job search for those over 50 winning positions in the second quarter lasted 4.2 months, according to the latest quarterly survey of discharged managers and executives. That is just about two weeks longer than younger job seekers, whose median job search time in the second quarter was 3.6 months.

A recent survey of 140 mid-size and large companies in the US by Hewitt Associates found that 55 percent have evaluated the impact that potential retirements could have on their organizations. Sixty-one percent of the companies surveyed developed or plan to develop special programs to retain near-retirement workers, including phased retirements that allow would-be retirees to reduce their hours (and salaries) incrementally instead of all at once. This is a win-win for employers and potential retirees. The employer gets the benefit of retaining experienced personnel who will have more time to pass along their corporate knowledge to younger workers. Ageing workers benefit by not being thrust into retirement before they are mentally and financially ready.

We need to keep on eye on UK statistics to see if these patterns are repeated here.

Recession Tips 3 - 8

• Explore what you want to buy in stores and then buy it on the Internet at home. Use your search engines.
• Always negotiate in small business owned stores. You can try in the larger stores but the sales people often have no delegated power to negotiate with you.
• Ask for discounts for cash.
• Try home exchange schemes instead of renting villas and apartments.
• Forget designer labels and go to TK Max, Primark, George at Asda, etc.
• Don’t buy new. You can buy second hand copies of books from Amazon online that are hugely discounted from the price of new ones.