The transition towards a green economy, rapid development of digital technologies and demographic change are some of the forces disrupting traditional career paths, resulting in more fluid diversified career trajectories. To benefit from increased longevity, workers will increasingly have to consider job mobility at middle and older ages, changing jobs or careers more frequently than in the past. As in other countries, career mobility declines with age in the United Kingdom, yet voluntary mobility can provide opportunities to find better jobs, potentially improving job satisfaction, skills use and productivity. This report identifies key public and employer policies in the United Kingdom that can support career mobility at older ages. While the UK labour market remains dynamic providing ample job opportunities, not all workers benefit equally. Sustained public commitment to better-integrated career guidance, employment support and skills training is needed to support workers at all stages of their career. With workforce ageing, all stakeholders including employers must prioritise enhancing job quality along with health and well-being to prevent premature workforce exits. Key factors include fair pay, access to occupational health, supportive working conditions and workplace accommodation, flexible work options, and opportunities for ongoing learning and development.
Promoting Better Career Mobility for Longer Working Lives in the United Kingdom
Abstract
Executive Summary
Offering workers with diverse needs and experiences a range of options and greater opportunities for career transitions is essential to keeping them engaged in the workforce for longer. The ability to navigate career and job changes throughout one’s working life is crucial for adapting to the challenges and opportunities provided by rising lifespans, the rise of generative artificial intelligence, and the green transition. Late‑career workers are becoming a significant share of the population. By 2050, it is expected that one in four people will be over the age of 65 in the United Kingdom. Therefore, expanding the career options and enhancing job opportunities for mid-to-late career workers at all skill levels is critical for a resilient labour market and to meet rising and persistent labour shortages.
The United Kingdom’s workforce is undergoing a seismic shift, with mid-to-late career workers and those of traditional retirement age increasingly dominating the labour market. Over the past two decades, employment rates for older workers have surged, fundamentally altering the composition of the labour force: employment rates rose from 11.3% in 2000 to 26% in 2023 among those aged 65‑69 and from 50.8% to 65% at age 55‑64. This trend represents a substantial influx of experienced workers remaining in or returning to the workforce and reflects individuals extending their careers well beyond the conventional retirement age. Yet paradoxically, job and occupational mobility have been declining in the United Kingdom over time, and many older workers encounter substantial barriers when seeking to change jobs.
Career planning is vital for supporting longer working lives and facilitating work transitions throughout the life course. In the United Kingdom, there is a notable gap in support for mid-to-late career workers navigating a changing labour market. There is a substantial private sector market for career guidance, however, a lack of regulation may mean significant variation in the quality of provided services, and in any event such services may be out of reach for people with lower incomes. The lack of a comprehensive, all-age career guidance system means many, especially those in mid-life or with lower skills, do not receive adequate support. There is a strong case for better integration and co‑ordination between employment support, skills provision, and career guidance, for example by reshaping Jobcentre Plus (JCP) into a true and easily accessible employment service for workers and jobseekers alike. Employers can also play a crucial role in career development through initiatives like mid-life career reviews; however, employer support in the United Kingdom is inconsistent, particularly in small and medium-sized enterprises (SMEs), underscoring the need for better structures to promote widespread engagement in career planning.
Flexible, lifelong learning is crucial for career adaptability due to changing skills needs brought about by technological advancements and the green transition. Existing education and training systems in the United Kingdom are not sufficiently flexible to accommodate the lifelong learning needs of individuals, particularly older workers and low-skilled workers of all ages. The planned introduction of a Lifelong Learning Entitlement (which will offer financial support for up to four years of post‑18 education up to the age of 60) could be a sea change if the system is flexible enough, including part-time training, funded adequately, providing in-demand skills, and reaching relevant groups, including potentially through a training entitlement. This touches on a general deeper problem in the system and policies of the United Kingdom: while promising pilots and initiatives are frequently developed, their implementation is lagging behind and funding for a full roll-out of promising policies is often low or not sustained.
Key aspects of good job quality such as fair pay and working conditions, good physical and mental health, and opportunities for continued learning, are crucial components for maintaining long-term employment and facilitating career development. Among workers aged 55‑64 in the United Kingdom who have recently changed jobs, the main reasons cited were low pay (38% of respondents), feeling undervalued (26%), and a lack of career advancement opportunities (17%). Workplace and working time flexibility are crucial for employee satisfaction and retention, especially for mid-to-late career workers and those who have caregiving responsibilities. Improving job quality is underpinned by effective management practices which enhance productivity and offer advancement opportunities for workers across all age groups. AI has the potential to enhance job quality for older workers by reducing physical strain through automation of demanding tasks and facilitating human-machine collaboration. However, without careful implementation, AI-driven monitoring and data use could increase stress and reduce autonomy, negatively affecting older workers’ well-being and job satisfaction. Employers benefit from adopting an inclusive approach to managing a diverse workforce by promoting health, well-being, and skills development tailored to age‑specific needs, improving both employee engagement and retention.
In the United Kingdom, poor health remains a leading cause of premature workforce exit, with chronic conditions and prolonged absences impeding re‑entry into work. SMEs which employ the majority of workers struggle with the provision of quality management, occupation health services and return-to-work measures for workers on sick leave. Early intervention and support are crucial, including access to adequate statutory sick pay and preventive and reactive occupational health services. Employers can play a proactive role by offering health and well-being programmes and flexible work arrangements, which can enhance productivity and reduce absenteeism. Additionally, early, personalised, and integrated health and employment support through programmes like Individual Placement and Support and other less-costly variants of supported employment can effectively assist workers with disabilities and chronic health-related barriers, ensuring a more inclusive and supportive work environment.
Recommendations for policy action by employers and by the government:
Strengthen employer support for mid-life career planning and establish an accessible, all-age career guidance system at the national level which is closely integrated with an upgraded public employment service for workers and jobseekers alike.
Implement flexible, modular lifelong learning pathways accessible for older workers and promote the recognition of prior learning and skill validation.
Promote age‑inclusive workplace management and flexible working arrangements across all sectors and provide support to SMEs for the development of quality management.
Strengthen health management at the workplace by improved in-work support for workers with chronic health issues and early intervention and return-to-work strategies for workers who have been sick.
