Unemployment: over-50s most likely to be out of work, latest statistics show

The proportion of over-50s out of work for 12 months or more remains the highest for any age group, while employment levels among the over 65s continue to rise, according to the latest official Labour Market Statistics released today. According to the data from the Office for National Statistics (ONS) , despite 38,000 more over-50s finding work between June and August 2010, 387,000 still remain out of work. Of those, 42.7% - or 165,000 - are long-term unemployed. Chris Ball, chief executive of The Age and Employment Network (TAEN) , said the figures were worrying for unemployed older people and those about to lose their jobs. "We fear that worse is to come," he said. "Long term unemployment or economic inactivity is a very difficult position to be in when you are in or approaching your 50s. These are the workers being told that they must work longer and save more for their retirement, but at the same time they are being shut out of the labour market, making it all the harder to get back in. Ball said TAEN was particularly concerned about the rates for older men, "as we know from previous recessions that many who faced unemployment at their age never got back to work. Far from saving for a longer retirement, it seems that many may have already retired involuntarily." Despite the gloomy figures, the number of over 65s in full- or part-time work rose by 0.4% to an all-time high of 846,000 in the three months from June to August 2010, up by 42,000 from the previous quarter, and a rise of 89,000 from the corresponding period in 2009. The increase comes at a time when a number of measures are being taken to help older workers stay employed for longer. The coalition government earlier this year announced its intention to phase out the default retirement age (DRA) by October 2011. Currently employers can, if they wish, force employees to retire at the age of 65. Last week a report by Lord Hutton also recommended that the retirement age for public sector workers – currently 60, but 65 for new entrants – should rise, as well them having to pay higher contributions into their funds. A decision on the report is expected in the government's comprehensive spending review on 20 October. Other measures being taken include a re-establishment of the link between earnings and the basic state pension. "There is a growing realisation among older people themselves that with pension pots shrinking and annuity rates at a record low, working on makes sense, and a widespread realisation that senior employees offer tremendous value for money," said Ball. Under the government's plans, the default retirement age will be phased out over a six-month period, starting in April 2011. Last month the Advisory, Conciliation and Arbitration Service (Acas), called for firms to put performance management systems in place to ensure older workers have objectives and the opportunity to identify training needs. "They should also be sensitive to the fact older workers are more likely to become disabled and as such the employer would need to make reasonable adjustments as they would for any other employee regardless of age," said Steve Williams, Acas's head of equality services.