Ten years ago there were 500,000 people in work who were over the retirement age of 65. Now that figure is approaching the one million level, with a rise of 270,000 since 2009, a period marked by a deep slump, brief recovery and a prolonged period of flat-lining. Half the total increase in employment during the past three years has been in 65-plus age bracket.
In one respect, this is excellent news. The increase in life expectancy means we are all going to be expected to work longer in order to make our pensions go further. Rising employment among the over-65s is just what the government wants to see.
There is one drawback, pointed out by Martin Beck of Capital Economics. The increase in jobs for older workers has come at the expense of younger workers, with employment for the 18-24 age group falling by 150,000 over the last three years. In effect, companies have been saying to those just out of school and university: We don't want you, we want your granny.
This matters for two reasons. The first is that there is plenty of evidence that long periods of unemployment for a young person leave scars for life. Second, employing more older workers is a mixed blessing when it comes to productivity, because while they older workers tend to be experienced and reliable, they are also slower to pick up new ideas and techniques than younger workers.
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