Future employment and ageism in Britain

In common with all developed countries, the population of Britain is ageing. Much has been written about the impact demographic change will have on our societies in the first part of the next century. An ageing population brings problems for health care, pensions and particularly the labour market. With fewer younger people coming into the labour market, increasing the participation rate of older people in the workforce is a high priority. This paper argues that, unless there is a change in attitudes on the part of employers towards the employment of older workers the achievement of full employment will be accompanied by rising numbers of men aged 50 and above who are not working. In consequence the Gross Domestic Product will be lower than it would otherwise be and intergenerational transfers between those in work and those aged 50 and above would continue to be substantial.