Using the same definition as the chancellor, plus three more months of data, the research found that the increase in economic inactivity was 516,000, though the number of “retired” had fallen slightly.
Commenting on the research, LCP partner Sir Steve Webb said: “There is a real risk of the government ‘barking up the wrong tree’ when it comes to the growth in economic inactivity.
“Policy solutions which aim to reduce early retirement or to encourage the retired out of retirement are likely to have only limited effect in reversing recent trends. Instead, the policy effort needs to be focused around understanding why flows into long-term sickness have grown and on early intervention to prevent people’s health from deteriorating.
“Without action there is a risk of a growing core of people stuck in long-term receipt of sickness benefits with limited prospect of returning to paid work and damaged prospects for retirement.”
Same as it ever was...
Whether ill or retired, corporate culture may require an overhaul before older workers are put to work in the economy.
Recent research by the Chartered Management Institute found that despite the shifts in society and the workplace, ageism remains alive and well.
A study found that out of 1,000 employers, only 42 per cent would be open to hiring older workers aged between 50 and 64 than bringing in younger talent.
For those aged above 65, the number drops to only three in 10, while 20 per cent said they were not open to hiring individuals from that cohort at all.
Pádraig Floyd is interim editor at FTAdviser's sister publication Pensions Expert
