Career re-skilling is essential for increased lifetime learning among older workers due to stagnating career possibilities and dwindling pension savings, according to the CIPD.
The Chartered Institute of Personnel and Development (CIPD) has released a report highlighting the need for a "new era of reskilling" to help older workers adapt to the changing labour market, driven by factors such as the transition to a net zero economy and artificial intelligence (AI).
According to the CIPD's analysis, employment among 50-64-year-olds in England has seen a significant increase by 40% over the past 20 years, growing nearly three times faster than overall employment. However, this growth comes with challenges. Older workers are particularly exposed to the effects of net zero transition, AI, and other labour market megatrends.
The report estimates that around 6.3 million jobs will change by 2050 due to the net zero transition, and two million jobs could be displaced by technological change by 2035. Unfortunately, older workers are disproportionately affected and have less access to training than their younger counterparts.
The CIPD's report, titled "Lifelong Learning in the Reskilling Era: From Luxury to Necessity," details a series of recommendations aimed at addressing these challenges. Key proposals include increasing employer training budgets, improving skills development programs, and providing support for redeployment into new roles.
The organisation also advocates for government interventions such as training vouchers, flexible individual learning accounts, and paid educational leave to enable older workers to upskill or reskill without income loss. Flexible modular training and mid-career reviews are suggested to fit learning around workers’ responsibilities, along with guaranteed job security during reskilling periods.
The report further reveals that participation in training falls with age in the UK. Only around one in four workers (24%) aged over 55 say their job offers good prospects for career advancement, compared to 39% of workers overall and 59% of those aged 18-24.
Moreover, the CIPD warns that more than a third (37%) of older workers say they have skills that could be used in a more demanding role, yet many are not being given the opportunity to advance. Flexibility over working hours and location, as well as mid-career reviews and conversations, can help assess and fulfill older workers' ambitions and development needs.
The decline in investment in training by employers has coincided with a 31% decrease in public spending on adult learning since its peak in 2003/4. The amount spent on workforce training in the UK has decreased by 27% over the last ten years, from £4,095 per trainee in 2011 to £2,971 per trainee in 2022.
The CIPD is urging the Government to take urgent action to avoid leaving older workers behind in the evolving economy. They believe that by investing in lifelong learning, the UK can help older workers remain in work, build long-term financial resilience, and stay adaptable and competitive in a changing labour market.
[1] CIPD (2023). Lifelong Learning in the Reskilling Era: From Luxury to Necessity. [online] Available at: https://www.cipd.co.uk/knowledge/fundamentals/people/learning/lifelong-learning-reskilling-era
[2] CIPD (2023). CIPD calls for a new era of reskilling to help older workers remain in work. [online] Available at: https://www.cipd.co.uk/about/media/press/press-releases/2023/march/cipd-calls-for-a-new-era-of-reskilling-to-help-older-workers-remain-in-work
- The CIPD's report underscores the importance of lifelong learning for personal growth, career development, and skills training, particularly in the context of an evolving labor market driven by factors like net zero transition and AI.
- To equip older workers with the necessary skills for success in a changing employment landscape, the report advises increasing employer training budgets, enhancing skills development programs, and offering government interventions such as training vouchers and paid educational leave.
