Member Article

Employment rise due to older workers?

UK unemployment fell by 61,000 to 1.61 million in the three months to the end of December, government figures show. The Office for National Statistics (ONS) also said the number of people claiming jobseeker’s allowance in January fell by 10,800 to 794,600.

The latest official labour market statistics, published earlier today by the Office for National Statistics (ONS), show that the UK jobs market was performing remarkably well in the final quarter of 2007. But the Chartered Institute of Personnel and Development (CIPD) said that a number of conundrums surround the ONS figures.

John Philpott, Chief Economist at the CIPD, said: “Taken at face value the ONS figures suggest that most new jobs at present are going to people aged 50 and over - this age cohort accounts for almost 6 in 10 of the additional people in work last year. But this sits oddly with the observation that most new jobs are being taken by migrant workers - a group overwhelmingly aged under 40.

“We reckon this conundrum is explained by the fact that migrant workers are taking the lion’s share of new job vacancies while older workers are instead better able than in the past to hold onto their jobs. In jargon terms, over 50s employment is rising because of increased job retention not increased hiring of older workers. What this also highlights is that home grown workers, not just those from overseas, have benefited from the jobs boom of recent years. It remains to be seen which groups will fare best when the jobs market next enters tougher times.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .