Increasing ‘golden age’ employment rate could bring 18,000 into north’s workforce – PwC

Encouraging Older Workers in Northern Ireland: A Path to Economic Growth

Introduction

A recent analysis conducted by PwC suggests that encouraging more people between the ages of 55 and 64 back into the workforce could lead to an additional 18,000 individuals employed in Northern Ireland. This report aims to explore the current employment rates for older workers in Northern Ireland, compare them to other regions in the UK, and highlight the potential benefits of increasing their participation in the labor market.

The Golden Age Index

The ‘Golden Age Index’ is a measure used to evaluate how effectively countries are utilizing the skills and experience of their older workers. According to PwC’s study, Northern Ireland has one of the lowest employment rates (60.5%) for individuals aged 55 to 64 within the UK. In comparison, the rate ranges from 57% in the north east of England to a peak of 68% in the south east.

The Potential Impact

If Northern Ireland were to match the 68% employment rate of the south east, it could result in an additional 18,000 people joining the workforce. This projection is based on data from 2021 and highlights the untapped potential of older workers in the region.

Economic Inactivity Among Older Workers

Analysis of the labor market since the Covid-19 pandemic has revealed that adults aged over 50 years were primarily responsible for driving increases in economic inactivity. PwC’s research further indicates that older workers in the UK are more likely to have left work and not returned compared to their counterparts in other G7 countries. The study identifies the UK as an outlier within the G7, with economic activity levels among older workers failing to recover to pre-pandemic levels.

Factors Influencing Economic Inactivity

PwC’s research highlights that individuals over 55 years old account for three-quarters of total economic inactivity. The primary reasons for this include high house values, investment income, and poor health. It is crucial for businesses and policymakers to understand these factors and design appropriate policies to support older workers.

International Comparisons

New Zealand, Iceland, and Japan rank highest in terms of the proportion of economically active individuals over 55 in their labor forces. These countries serve as examples of successful integration of older workers into the workforce.

Recommendations

Jason Calvert, economist at PwC Northern Ireland, emphasizes the importance of encouraging older workers to return to work to alleviate domestic inflationary pressures and address labor shortages. He suggests that businesses and policymakers should focus on designing tailored policies that reflect the unique sector mix in Northern Ireland. For instance, considering that workers in Northern Ireland are more likely to be employed in physically demanding sectors such as manufacturing and agriculture, policies should accommodate their specific needs.

SDGs, Targets, and Indicators Analysis

1. Which SDGs are addressed or connected to the issues highlighted in the article?

• SDG 8: Decent Work and Economic Growth
• SDG 10: Reduced Inequalities
• SDG 11: Sustainable Cities and Communities

The article discusses the low employment rates for workers between the ages of 55 and 64 in Northern Ireland. This issue is connected to SDG 8, which aims to promote sustained, inclusive, and sustainable economic growth, full and productive employment, and decent work for all. It is also connected to SDG 10, which focuses on reducing inequalities, as older workers may face barriers to employment. Additionally, it is connected to SDG 11, as increasing employment rates can contribute to the development of sustainable cities and communities.

2. What specific targets under those SDGs can be identified based on the article’s content?

• Target 8.5: By 2030, achieve full and productive employment and decent work for all women and men, including for young people and persons with disabilities.
• Target 10.2: By 2030, empower and promote the social, economic, and political inclusion of all, irrespective of age.
• Target 11.1: By 2030, ensure access for all to adequate, safe, and affordable housing and basic services and upgrade slums.

Based on the article’s content, the specific targets that can be identified are Target 8.5, which focuses on achieving full and productive employment and decent work for all, Target 10.2, which aims to promote the inclusion of all individuals irrespective of age, and Target 11.1, which aims to ensure access to adequate housing and basic services.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

• Employment rate for workers aged 55-64
• Economic activity level among older workers
• Proportion of economically active over 55s in the labor force

The article mentions several indicators that can be used to measure progress towards the identified targets. These indicators include the employment rate for workers aged 55-64, the economic activity level among older workers, and the proportion of economically active individuals over 55 in the labor force.

SDGs, Targets, and Indicators Table

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Source: irishnews.com

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