Part 3: Change in characteristics among employed 50-64 year olds

Section three explores some characteristics of the growth of the mature labour force, looking at whether growth has been more prevalent among higher educated workers and for those who are part-time or in self employment.

Firstly, education levels are investigated. Educational qualifications are an important influence on labour force participation. However, due to changes to coding in the HLFS and changes in the types of school qualifications over time, it has been necessary to categorise educational qualifications rather crudely between those who have post-school qualifications and those without. Figure 8 shows no appreciable difference in growth in employment of older workers with post-school qualifications compared to those without qualifications.

Figure 8: Employment growth of older workers by educational qualifications 1991-2005

Secondly, hours worked are investigated. Figure 9 shows employment growth has been largely in full-time work (over 30 hours per week). The proportion of older persons working part-time has actually decreased slightly from 22% in 1991 to 19% in 2005. While there has been steady growth in females in part-time work, growth in females in full-time work has almost trebled over this period. By 2005 67% of older females were working full-time, up from 60% in 1991. The proportion of older males working full-time has also increased slightly.

The proportion of older persons working full-time is currently fairly similar to the overall proportion of full-time workers. So there is little sign that hours worked declines strongly at higher age groups. This is very interesting in relation to a commonly stated preference among older workers when surveyed who state that they would like to work more part-time and more flexible hours (see McPherson 2005). This raises questions about why older people tend to work the hours they do, and the opportunities available for people to obtain the hours they desire.

Figure 9: Employment growth of older workers, full-time versus part-time by gender 1991 -2005

Some literature suggests that along with part-time work the probability of self-employment increases with age, (and this is sometimes seen as the preferred option for older persons). However, Figure 10 shows that the growth in employment among older workers has been dominated by wage and salary workers. While there are a large number of white collar professionals and managers in this age group, it is clear that the bulk are not self-employed or employing others. The proportion of older workers who stated they are either self employed or employing others has actually decreased from 28% in 1991 to 26% in 2005 (annual September year averages). Over the same period the proportion of all workers either self employed or employing others also declined, from 20% to 18%. So while the decline in self employment among older workers is broadly in line with overall trends, it does not support the notion of a growing preference towards self-employment among older workers.

The apparent contradiction between the preferences among older workers for more part-time work and more self employment and the reality as shown in the HLFS results may need further investigation. It may only become common over 65.

Figure 10: Type of employment of older workers 1991-2005