ENCOURAGING more people between the ages of 55 and 64 back into the workforce could translate into an additional 18,000 in work in the north, analysis by PwC suggests.
A new study from PwC found Northern Ireland has one of the lowest employment rates (60.5 per cent) for workers in the age bracket.
The ‘Golden Age Index’ measures how well countries are harnessing the power of their older workers.
In the UK, the rate ranges between 57 per cent in the north east of England, peaking at 68 per cent in the south east.
PwC said if Northern Ireland managed to match the 68 per cent rate, it would result in around an extra 18,000 people in work. The study is largely based on data from 2021.
Analysis of the labour market since the Covid-19 pandemic has shown adults aged over 50 years were largely responsible for driving increases in economic inactivity.
PwC’s research found people in the UK aged over 55 are more likely to have left work and not returned than those in other G7 countries.
It identified the UK as an outlier among the G7, with economic activity level among older workers not recovering to pre-pandemic levels.
PwC said over 55s were responsible for three-quarters of total economic inactivity, with high house values, investment income and poor health the primary reasons.
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New Zealand, Iceland and Japan top the rankings for the highest proportion of economically active over 55s in the labourforce.
Jason Calvert, economist at PwC Northern Ireland, said: “Encouraging older workers to return back to work would aid businesses with labour shortages, ultimately helping to alleviate domestic inflationary pressures.
“It’s vital that businesses and policymakers focus on designing policies to support those who want to continue to work, as well as help to incentivise older workers to return to work if they want to.
“For this to work, policies for older workers will need to be tailored to reflect the unique sector mix in Northern Ireland.
“For example, workers in Northern Ireland are more likely to work in the manufacturing and agriculture sectors, which are generally more physically demanding and require more on-site presence.”
