Why UK’s over-50s workforce is shrinking despite labour shortages
Employment rates for people aged 50 to 64 in the UK have stalled at around 71 percent—below pre-pandemic levels and trailing countries like Sweden, Japan and Germany. Meanwhile, more than 2.8 million people in this age group are now out of work due to chronic illness, with long-term sickness rising sharply in recent years. Experts warn that outdated work structures and widening inequalities are pushing older workers out of the labour market too soon.
Many midlife workers face mindset barriers that cut their careers short. Feelings of irrelevance or low digital confidence often force them out before their skills actually decline. At the same time, industries with severe labour shortages—such as care, transport, retail and hospitality—offer the least flexibility, accelerating early retirements.
The combination of rigid work structures, health challenges and deepening inequalities is shrinking the UK’s older workforce. With chronic illness and long-term sickness on the rise, more people in their 50s and 60s are exiting employment early. Without targeted reforms, the trend risks worsening labour shortages and reducing national competitiveness.
