Marvin OnumonuThe latest Department for Work & Pensions (DWP) data on the labour market status of individuals aged 50 and over showed that older workers saw a slow recovery in employment, while the inactivity rate fell.
The employment rate for people aged 50 to 64 fell after 2019, dropping from 72.6% to 70.4% in 2022, before rising again each year since.
In the past year, the rate increased by 0.7 percentage points to 71.6%.
The employment rate gap between those aged 35 to 49 and 50 to 64 was 14.1% in 2025, almost unchanged from 2024, but down from 14.5% in 2023.
England had the highest employment rate for people aged 50 to 64 at 72.4%, while Wales had the lowest at 63.5%.
Wales saw a rise of 3.3 percentage points from 2024 to 2025.
The gap between those with no qualifications and those with any qualification was larger than any other gap between different qualification levels.
In 2025, people aged 50 to 64 with no qualifications had an employment rate 22.2 percentage points below those with GCSE grades A to C or equivalent, compared to a 9.5 percentage point gap between those with GCSEs and degree holders.
The average age people left work increased over the last year, reaching record highs since annual records began in 1984.
In 2025, men left work on average at 65.8 years old, up from 65.7 in 2024, while women left at 64.7, up from 64.6.
The inactivity rate for those aged 50 to 64 in 2025 stayed above pre-pandemic levels, but dropped by 1.2 percentage points in the past year from 27.3% in 2024 to 26.1% in 2025, a statistically significant fall.
Women in this age group had a higher inactivity rate than men, at 30.0% compared to 22.0%.
Sickness, injury or disability was the main reason for being inactive, with 44.7% giving this answer.
Women were twice as likely as men to say ‘looking after home or family’ kept them out of work, at 18.1% compared to 7.7%.
More men said ‘retired’ was their main reason, at 32.5% compared to 26.9% for women.
The state pension age had a clear impact, with the employment rate dropping by 12.8 percentage points and inactivity rising by 13.9 percentage points between ages 65 and 66.
The unemployment rate for those aged 50 to 64 went up by 0.7 percentage points from 2.4% in 2024 to 3.1% in 2025.
The gap in long-term unemployment rates between the 50 to 64 and 35 to 49 age groups narrowed from 4.4 percentage points to 1.6 percentage points in the last year.
About 876,000 people aged 50 to 64 were either looking for work or inactive but willing to work.
Kevin Fitzgerald, UK managing director at Employment Hero, said: “The latest Department for Work & Pensions data shows only a small increase in employment for those aged 50 and over, reflecting a wider trend of employees ‘job hugging’ to navigate the current UK jobs market.
“Our Jobs Report shows 45% of employees over 55 now prioritise job security over ambition, while just 20% are considering a career change.
“Older workers face specific challenges and are particularly vulnerable to structural unemployment.”
Fitzgerald added: “Our data also shows 58% of over-55s lack confidence in their ability to find a new role quickly, and only 6% started a new job in the past year, compared with 35% of 18-24 year olds.
“Job mobility is essential for growth, and more support is needed to help older workers navigate today’s complex labour market.
“As emerging technologies reshape workplaces, businesses have a responsibility to ensure all employees can develop the skills needed to future-proof their careers.
“Well-structured training programmes can help ensure older employees aren’t left behind.”
