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CIPD urges new ‘reskilling era’ to support older workers in the labour market

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The latest analysis by CIPD suggests that older employees face particular challenges in navigating changes caused by automation, climate policy and evolving workplace demands, yet often lack access to the training and support required to adapt.

In its new report Lifelong learning in the reskilling era: From luxury to necessity, the CIPD notes how current systems of training and career progression are not keeping pace with the changing structure of the workforce. Nearly 45 percent of UK workers are not contributing to a pension, which raises concerns about the long-term financial security of older employees.

The research shows that older workers are especially vulnerable to the effects of megatrends such as AI and the transition to a net zero economy, with limited opportunities to retrain or change careers. Failure to address these challenges may lead to people being locked out of suitable employment, lowering their earning potential and wellbeing.

“Our analysis, and latest projections from Government on a pensions crisis, paint a bleak picture with profound implications for individuals as well as economic and social policy,” said Lizzie Crowley, senior skills adviser at the CIPD. “If changes to retirement age and the pensions crisis mean we’re all going to work for longer, we urgently need to usher in a new era of reskilling to help people develop into new roles and sectors.”

Older workers least likely to access training and development

The CIPD found that employment among 50–64-year-olds in England has grown by 40 percent in the past 20 years – almost three times faster than overall employment growth of 14 percent. Meanwhile, the number of workers aged 16-24 in employment has fallen by 13 percent over the same period. Despite making up a larger share of the workforce, workers over 55 are significantly less likely to access training or development opportunities.

Just 47 percent of over-55s said their current job offers good skills development, compared to 73 percent of 18–24-year-olds. Nearly four in ten (37%) older workers said they had skills suitable for a more demanding role, yet just 24 percent felt their job offered good prospects for career advancement. This compares with 59 percent of younger workers aged 18–24.

The report notes that lower training participation, combined with limited job mobility, may result in older employees remaining in roles that do not fit their needs or leaving the workforce entirely if their current roles are displaced.

Crowley added, “The reskilling imperative isn’t just an economic necessity – it’s a social contract. By reimaging how we support people to learn and adapt throughout their lives, we can build a more resilient, equitable and prosperous future for everyone.”

Investment in adult training has declined over the past decade

The CIPD’s analysis also reveals a decline in employer investment in training. The average amount spent per trainee fell by 27 percent over the past ten years, from £4,095 in 2011 to £2,971 in 2022. Public spending on adult learning has also decreased, down by 31 percent in real terms since its peak in 2003/4.

The report found that older workers are less likely to engage in learning due to time and cost constraints, especially when balancing caring responsibilities or other commitments. To tackle these issues, the CIPD recommends a greater focus on flexible learning approaches, including micro-credentials and modular training options.

The organisation is also urging the Government to implement policies such as training vouchers, paid educational leave and flexible individual learning accounts to support lifelong learning.

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