29 September 2005 - Publication of DWP research report 281: factors affecting the labour market participation of older workers: qualitative research
New research published today by the Department for Work and Pensions explores the factors influencing the labour market participation of workers aged between 50 and 69.
The research is a qualitative follow up to the quantitative research report Factors affecting the labour market participation of older workers by Alun Humphrey, Paddy Costigan, Kevin Pickering, Nina Stratford and Matt Barnes published in November 2003. This research explores the relationships between the factors that influence labour market disengagement, retention and return. It also reports on general attitudes towards work and training and explores people’s decisions about planning for retirement.
The main findings are:
- Respondents’ reasons for wanting to work fell into two broad categories:
- Financial, including financial choice and financial necessity.
- Personal/practical, including self-esteem; job satisfaction; providing for self and family; social contact; maintaining good health; and providing a routine.
- Exit from the labour market was generally associated with four strong factors: redundancy, ill-health, financial security and caring responsibilities. Redundancy or ill-health sometimes acted as single reasons for leaving but financial security never caused labour market exit on its own. People stated that financial necessity was the most important reason why they remained in work.
- Those who returned to the labour market generally did so within a year, often facing multiple barriers in the process.
- Reasons why some respondents with health problems remained in work, often despite having severe health conditions, were complex and covered the financial and personal/practical reasons above. Those who remained in work showed a strong work ethic, a desire for independence from state benefit, employer support and a perception that their illness was not permanent.
- Attitudes towards training varied according to respondents’ occupation, work history and work status with those who had had regular training in their work being more positive about that training.
- Respondents in less well paid, part-time semi-skilled or unskilled occupations said that it was difficult to negotiate with their employer about flexible working conditions.
- Individual awareness about the help available to support a return to work and the extending working life agenda was low with respondents interpreting Government policy as being about a compulsory extension of state pension age. Respondents considered that working longer should be a matter of choice and should not be enforced. Most expected to retire at state pension age and considered that they had earned the right to do so.
- Respondents saw a role for government in: communicating pension information; providing a stable and reliable income for people in retirement; regulating the pension environment to protect consumers; supporting flexible working practices; rewarding working longer; and enabling choice around when to retire.
Notes to Editors
- The first stage of this research – Factors Affecting The Labour Market Participation Of Older Workers by Humphrey et al, DWP Research Report 200 – was a quantitative study that explored the influences on continuing labour market participation of factors such as health, caring, income and assets, pension provision, qualifications and occupation. The research was based on a sample survey of 2,808 people aged 50 to 69. The sample was drawn from the Department’s Family Resources Survey (FRS) with a boost sample of people in receipt of Incapacity Benefit and / or Income Support, selected from benefit records to ensure adequate coverage of this group. All interviews were conducted face-to-face.
- The second stage of the research is based on 71 in-depth face-to-face interviews and six focus groups conducted evenly across three selected areas: Christchurch and East Dorset, Walsall and Newcastle. The areas were chosen to ensure that the research included a range of participants in different situations in a range of different labour markets.
- Research Report 281 – Factors Affecting Labour Market Participation of Older Workers: Qualitative Research is published on 29 September 2005. The report is available on the DWP website and hard copies can be obtained from Paul Noakes, Room 4-26, The Adelphi, 1-11 John Adam Street, London WC2N 6HT.
DWP Press office: Ben Lloyd 020 7238 0749
Out of hours: 07659 108 883
Public enquiries: 020 7712 2171
Website: www.dwp.gov.uk/asd/asd5
Prepared by: Department for Work and Pensions Cross Cutting Strategic Analysis Division