Unemployed Older Workers a Problem in Povery – Old
Contrary to the press, publicity and politicians there is a strong argument to say that the older generation has a more painful experience. Central to the problem is a fact. Although the problems of the young are emotive and grab the headlines the problems of the older workers are seldom discussed.
Make no mistake, the problems faced by the young are severe. A contraction of the job market giving few opportunities for youth seriously impinges the start of their lives. Its bad for morale, makes setting up home and starting a family difficult, and may even be a source of financial hardship. However, the attention is on youth, and when the recessions passes the enduring optimism and perseverance of youth will pull through.
Problems faced by an older workforce made redundant by the recession may actually be more serious than those faced by the young. The perception is that this generation has an established way of life, belongs to a home owning generation with significant property assets, significant pension contributions, and can enjoy handsome redundancy payouts. Although many older workers enjoy these privilege a significant number do not, and will face a financially impoverished older age. Hardest hit are those in the 45 to 55 age bracket who ought to be becoming financially secure but are not yet sufficiently secure to abandon working life forever.
Redundant older workers may well have savings and not seem in immediate poverty when made redundant. However, they may have extensive financial commitments and may find it hard to return to the workforce. Many find it hard to adjust when a substantial income dries up. Not least, many in this generation are providing financial support and homes for a significant youth generation caught in the recession and unable to establish themselves away from the parental home.
There are several reasons why older people find it difficult to re-enter the workforce and can expect a substantial period of unemployment after a redundancy. Their skill sets may be out of date or too specialist for the insurance market. An older worker may have become too expensive, or too senior for the jobs that are falling vacant. Although age discrimination is not considered good practice there is still prejudice. Older workers often find it hard to settle into new roles particularly where they have worked for a long time with a prior employer. Employers need to balance their responsibilities to provide training and supervision against the skills and experience that an older recruit can bring to a company. Some older recruits complain that they are patronised and talked down in new employment, others complain that they are thrown into senior roles without any training in the ways of the new organisation whatsoever. Furthermore older employees are likely to be settled and less willing to expand their job search into territories that would involve a move of house. Older workers can also face care commitments for elderly relatives which further restrict their job mobility and availability. Generally, older workers either gain new employment quite quickly after redundancy or face long periods of unemployment.
The deepest suffering for older workers will come later from the consequence of long term unemployment. Policy planners have yet to come to terms with the fact that these workers are not contributing into company pension plans and will face poverty in old age unless more is done to get them back into the workforce.
