Is it a good thing for young people when employees over the age of 50 remain in the work place? Pareto Law were interested to read a new report which suggests that older workers generate jobs for young people.
Everyone needs an opportunity
Pareto Law is the largest, most successful sales recruitment specialist in the UK. We see the best and brightest graduates walk through our doors every single day. These are the people who have the skills and ambition to take on the world.
Yet even the most talented of graduates, those armed with good degrees and bags of ambition, can’t take on the world and establish a stellar career if there are no opportunities for them to take advantage of. Many people believe that graduates find it particularly hard to find jobs when older people remain in the work force, yet a new report has shown that this may not be the case.
More jobs are generated for young people when employees work past 50
According to the BBC, a government-backed report conducted by Dr Ros Altmann, a former advisor at 10 Downing Street, has shown that more, not less, jobs are created for young people when older employees remain in work past their 50s.
The report has shown that the UK economy would be expanded by £55 billion if we extended the working life of the average employee. We would add 1% to the UK’s GDP if everyone worked a year longer.
Conversely, according to Altmann, the country could have a serious labour shortage if the number of over 50’s leaving employment continues at its present rate. She commented that by 2020, there will be 700,000 less people between the ages of 16 and 49 than there is in the present day.
Essentially Altmann’s report is arguing that the more older people work, the more money they have to spend. As more money flows into the economy it creates more jobs for younger people. It’s trickle-down economics.
Altmann commented that “academic and historical evidence shows that, far from damaging job prospects, keeping more older people in work is associated with rising employment and wages for younger people.”
More opportunities for graduates
So what have we concluded from our review of this startling new report? Does it create more jobs for young people when older workers stay in employment past the age of 50? Perhaps. What this report has made clear is that with the number of 16 to 49 year olds set to decline by 2020, there will be more opportunities than ever for graduates to secure the role of their dreams and build a stunning career.