BRINGING more older workers into the workplace could boost the economy by billions, accountants have said.
A report by PwC found increasing the rate of employment among the over-55s could increase the Scotland’s GDP by about £6 billion.
But it would require similar levels of employment as those found in Sweden, where almost eight out of 10 people in the second half of their fifth decade has a job. The current UK average is 70.1 per cent.
Scotland has the second-highest rate of employment among over-55s in the UK, at 70.6 per cent. England has the highest UK employment rate for 50-64 year olds at 70.6 per cent, but more older Scots are employed than in Wales (66.5 per cent) and Northern Ireland (63.6 per cent) PwC’s Golden Age Index looked at factors such as employment, earnings and training which reflect the labour market impact of workers aged over 55.
The UK has remained middling in the global rankings since 2003, falling by one place from 18th in 2014 from 19th in 2015.
John Hawksworth, PwC’s chief economist, commented: “Scots tend to have a high level of education, and that is one of the factors that drives the rate at which people stay in work for longer.
“Regions with fewer older workers with university degrees and a larger gap between male and female employment tend to have the lowest employment rates for older workers.”
“We calculate that matching Sweden’s employment rate could boost GDP nationally by around 4 per cent, and if you apply that to Scotland it would improve onshore GDP, excluding oil, by around £6bn.”
He added that aside from the economic benefits of having people work longer into their retirement years, there will soon be a benefit to society as a whole.
Mr Hawksworth said: “Scotland has a particularly ageing population and there will be pressure on Scots to make the most of their working years as time goes on and there are fewer young immigrants coming in to make up the shortfall.”
Across the UK older female workers have a lower employment rate than their male counterparts at 64.9 per cent for 50-64 year olds, compared to 75.4 per cent for males.
The gender pay gap also increases with age, from an average of £28 per week for 22-29 year olds to £153 for 50-59 year olds.
PwC analysis suggests the labour market experience of older women is often characterised by lower pay, more part-time work and higher barriers to entry than males, driven by work-life patterns and occupational segregation.
Iceland remains number one in PwC’s Golden Age Index, a position it has held since 2003.
Nordic neighbours Sweden and Norway also continue to do well with places in the top 10. Turkey maintains its position at the bottom of the index, having fallen 12 places since 2003.
Israel has gained 10 places in the rankings since 2003, up from 13th place to 3rd, while Mexico has fallen from 6th place in 2003 to 18th place today.
Carol Stubbings, global people and organisation leader at PwC, said: “The life experience of older workers and the skills they have acquired throughout their career make them hugely valuable to the modern workforce.
“To build on this leading employers will offer older workers opportunities for development, including reverse mentoring schemes on digital skills and apprenticeships.”
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