A new study by the Institute for Fiscal Studies (IFS) has revealed that worsening health is a major factor in older workers quitting their jobs, leading to higher rates of economic inactivity in the UK. The study, which analysed data from over 20,000 workers aged 50 and above, found that those who experienced a decline in their health were more likely to leave the workforce.
The IFS report suggests that this trend is driving up rates of economic inactivity, which is defined as people who are not working and not actively seeking employment. The study estimates that around 1.3 million people aged 50 and above are economically inactive, with many attributing this to poor health.
The findings have significant implications for the UK's labour market and economy. As the population ages, the number of older workers quitting their jobs due to health reasons is likely to increase, putting pressure on the state pension system and potentially exacerbating skills shortages in certain industries.
The IFS has called for policymakers to take action to address the issue, including investing in healthcare and education to help workers maintain their skills and stay in work for longer. The study's author, Dr. Carl Emmerson, said: 'Our research highlights the importance of good health in enabling older workers to remain in the labour market. Policymakers should consider how to support workers to maintain their health and stay in work for longer.'
The UK government has already taken steps to encourage older workers to stay in employment, including increasing the state pension age and introducing measures to help people work beyond the age of 65. However, the IFS report suggests that more needs to be done to address the underlying causes of economic inactivity among older workers.