Older workers require a shift in skills to encourage lifelong learning due to the halt in career opportunities and diminishing pension savings, according to CIPD.
In a rapidly changing job market, older workers are finding themselves at a disadvantage due to a decline in investment in training by employers and a decrease in public spending on adult learning. Since its peak in 2003/4, public spending on adult learning has fallen by 31% in real terms. This trend is particularly concerning as older workers are disproportionately affected and least likely to have access to training to adapt to these changes.
The Chartered Institute of Personnel and Development (CIPD) is urging the UK Government and employers to prioritize boosting training budgets, improving internal skills development, and providing reskilling and redeployment opportunities in workplaces. The CIPD's latest report, "Lifelong Learning in the Reskilling Era: From Luxury to Necessity," suggests several specific measures to address this issue.
One key recommendation is for employers to increase investment in training budgets and skills development. This would ensure older workers have more opportunities to retrain and adapt to changes driven by AI, the net zero transition, and technological disruption. Employers could also implement practical workplace initiatives such as mid-career reviews to assess skill needs, offering flexible modular training programs that accommodate caring responsibilities, and guaranteeing job security for employees reskilling into new roles.
The UK Government can also play a crucial role in supporting lifelong learning for older workers. Government support mechanisms, such as issuing training vouchers, establishing flexible individual learning accounts, and providing paid educational leave, help people upskill or reskill without loss of income and encourage participation in lifelong learning.
The CIPD's recommendations aim to help older workers stay employable, maintain long-term financial security, and adapt to rapidly evolving job requirements in the face of labour market megatrends. The CIPD emphasizes that lifelong learning must transform from a luxury to a necessity to avoid older workers being left behind.
Flexibility over working hours and location, as well as mid-career reviews and conversations, can also help assess and fulfill older workers' ambitions and development needs. However, participation in training falls with age, with only 47% of over-55s feeling that their current role offers good skills development, compared to 73% of younger workers (18-24 year olds).
The CIPD's call for a 'new era of reskilling' is supported by additional context from OECD research. This research highlights that employer practices and government policies should support the hiring, retention, and employability of older workers through lifelong learning, flexible work arrangements, and job redesign to enable longer working lives.
By 2050, around 6.3 million jobs in the UK economy will change due to the effects of the net zero transition, and almost a third of jobs are exposed to AI and are likely to change significantly. The CIPD predicts a 27% fall in the amount spent on workforce training in the UK over the last ten years, from £4,095 per trainee in 2011 to £2,971 per trainee in 2022. Two million jobs could be displaced by 2035 due to technological change.
Employment among 50-64-year-olds in England has increased by 40% over the past 20 years, nearly three times faster than overall employment growth. Despite this, job moves amongst older workers (over 55) are less common compared to other age groups, with only around one in four workers (24%) aged over 55 saying their job offers good prospects for career advancement.
The CIPD's recommendations provide a roadmap for the UK Government and employers to ensure older workers are not left behind in the reskilling era. By implementing these measures, we can help older workers remain in work, build long-term financial resilience, and stay adaptable and competitive in a changing labor market.
Personally, I believe it's crucial for the UK Government and employers to focus on enhancing training budgets, encouraging internal skills development, and providing reskilling opportunities to foster personal growth and lifelong learning, specifically for older workers. This can help older workers adapt to the disruptions caused by AI, the net zero transition, and technology, ensuring their continued relevance in the job market.
The CIPD's suggestions, such as offering flexible modular training programs, conducting mid-career reviews, and securing job security for reskilling employees, can pave the way for the transformation of lifelong learning from a luxury to a necessity, preventing older workers from falling behind in the rapidly evolving job landscape.
