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1、Ageing andEmployment PoliciesPromoting Better Career Mobility forLonger Working Lives intheUnited KingdomAgeing and Employment PoliciesPromoting Better Career Mobility for Longer Working Lives in the United KingdomThis work is published under the responsibility of the Secretary-General of the OECD.T
2、he opinions expressed andarguments employed herein do not necessarily reflect the official views of the Member countries of the OECD.This document,as well as any data and map included herein,are without prejudice to the status of or sovereignty overany territory,to the delimitation of international
3、frontiers and boundaries and to the name of any territory,city or area.Please cite this publication as:OECD(2024),Promoting Better Career Mobility for Longer Working Lives in the United Kingdom,Ageing and Employment Policies,OECD Publishing,Paris,https:/doi.org/10.1787/2b41ab8e-en.ISBN 978-92-64-419
4、72-8(print)ISBN 978-92-64-97329-9(PDF)ISBN 978-92-64-49716-0(HTML)Ageing and Employment PoliciesISSN 1990-102X(print)ISSN 1990-1011(online)Photo credits:Cover Poznyakov/S.Corrigenda to OECD publications may be found at:https:/www.oecd.org/en/publications/support/corrigenda.html.OECD 2024 Attribution
5、 4.0 International(CC BY 4.0)This work is made available under the Creative Commons Attribution 4.0 International licence.By using this work,you accept to be bound by the terms of this licence(https:/creativecommons.org/licenses/by/4.0/).Attribution you must cite the work.Translations you must cite
6、the original work,identify changes to the original and add the following text:In the event of any discrepancy between the original work and the translation,only the text of original work should be considered valid.Adaptations you must cite the original work and add the following text:This is an adap
7、tation of an original work by the OECD.The opinions expressed and arguments employed in this adaptation should not be reported as representing the official views of the OECD or of its Member countries.Third-party material the licence does not apply to third-party material in the work.If using such m
8、aterial,you are responsible for obtaining permission from the third party and for any claims of infringement.You must not use the OECD logo,visual identity or cover image without express permission or suggest the OECD endorses your use of the work.Any dispute arising under this licence shall be sett
9、led by arbitration in accordance with the Permanent Court of Arbitration(PCA)Arbitration Rules 2012.The seat of arbitration shall be Paris(France).The number of arbitrators shall be one.3 PROMOTING BETTER CAREER MOBILITY FOR LONGER WORKING LIVES IN THE UNITED KINGDOM OECD 2024 Foreword Rapid populat
10、ion ageing,the growth of generative artificial intelligence and the green transition are likely to lead to a substantial reallocation of jobs across firms,sectors and regions.These trends raise potentially important challenges for workers who may be at risk of losing their job,but also present new o
11、pportunities for career progression,better wages,and better-quality jobs.With longer lifespans,many workers may also rethink their career ambitions,including seeking new roles before retirement after years in the same job or switching to more flexible jobs that support skill development while accomm
12、odating health and caregiving needs later in their careers.Creating supportive frameworks that enable workers to navigate this transition effectively are crucial to harness the benefits of these transformative changes.Despite the changing environment,however,many mid-to-late career workers face subs
13、tantial difficulties when seeking career or job changes.According to a joint OECD/Generation survey in 2022,lack of relevant job experience,job-search skills and health were the three most cited barriers among workers aged 45 looking to make a successful job transition.Age discrimination still limit
14、s opportunities for career growth and promotion.Only 13%of employers want to hire a candidate aged 55-65 compared to 47%willing to recruit 30-44 year-olds.Eliminating these barriers and supporting mid-to-late career workers who need or want to change job or career is essential for supporting longer
15、working lives and a more inclusive labour force.This report builds on OECDs cross-country report Promoting Better Career Choices for Longer Working Lives published in March 2024 and is the first in a sequence of reports looking into the challenges,policies and practices in selected OECD countries.Ot
16、her countries covered will include Austria,Belgium,Czechia and the United States.As in other countries,career mobility declines with age in the United Kingdom and many older workers with low skills find themselves in poor quality jobs.The report highlights job mobility trends as workers age,barriers
17、 facing older workers and recommendations to support reforms concerning labour and educational institutions,and business in the United Kingdom to ensure that experienced workers can continue to contribute meaningfully to the economy while also enhancing their own job satisfaction and career fulfilme
18、nt.This report on the United Kingdom is very timely in view of the just published White Paper on Employment,published by the new UK Government,which identifies many of the issues addressed in this report as a priority area for future reform.4 PROMOTING BETTER CAREER MOBILITY FOR LONGER WORKING LIVES
19、 IN THE UNITED KINGDOM OECD 2024 Acknowledgements This work was carried out in the OECD Directorate for Employment,Labour and Social Affairs(ELS).The report was prepared by Andrew Aitken,with the support of Christopher Prinz.Dana Blumin provided statistical support.Natalie Corry prepared the report
20、for publication.Valuable comments were provided by Shruti Singh(Senior Economist),Stefano Scarpetta(Director),and Mark Pearson(Deputy Director).We also acknowledge the support of the Department for Work and Pensions,in particular Toks Aina and James Bishop for facilitating our mission to the United
21、Kingdom and meetings with a wide range of stakeholders.Particular thanks are due to Sally-Anne Barnes,Jenny Bimrose,Kim Chaplain,Catherine Foot,David Lain,Becci Newton,Tony Wilson and Sally Wilson for discussions on the report,however,they bear no responsibility for the content of this report.This r
22、eport was prepared with the financial support of Generation and Google.org.The opinions expressed and arguments employed herein do not necessarily reflect the views of these two organisations nor those of the OECD Member countries.5 PROMOTING BETTER CAREER MOBILITY FOR LONGER WORKING LIVES IN THE UN
23、ITED KINGDOM OECD 2024 Table of contents Foreword 3 Acknowledgements 4 Executive summary 7 1 Career mobility in the United Kingdom:Evidence and insights from recent trends 9 1.1.Introduction 11 1.2.Employment rates in the United Kingdom have improved dramatically for mid-to-late career workers in re
24、cent decades 12 1.3.Opportunities for career progression fall as workers age 21 1.4.Balancing employment rates and job quality:a dual focus is essential 26 References 33 Annex 1.A.Local differences in inactivity across the United Kingdom 36 Notes 36 2 Supporting career progression in the longevity e
25、ra 37 2.1.Introduction 39 2.2.Career adaptability and job search skills are critical to help workers plan ahead 39 2.3.Supporting older workers to return to work 51 2.4.Creating learning and career pathways that lead to new opportunities 61 References 75 Notes 80 3 Enhancing job quality for healthie
26、r,longer working lives 82 3.1.Introduction 85 3.2.Enhancing job quality to boost employee retention and career mobility 86 3.3.Raising the quality of firm management to support the career advancement of workers of all ages 91 3.4.Reforming in-work health and employment support to help people remain
27、in work 97 3.5.Helping people who are long-term sick or with disabilities back into work 109 References 114 Notes 119 FIGURES Figure 1.1.The shifting drivers of population growth:the growing impact of older cohorts 11 6 PROMOTING BETTER CAREER MOBILITY FOR LONGER WORKING LIVES IN THE UNITED KINGDOM
28、OECD 2024 Figure 1.2.Employment rates at mid-to-late career have risen dramatically in the last two decades in the United Kingdom 13 Figure 1.3.The average age of labour market exit has only increased since the mid-2000s 14 Figure 1.4.Employment rates for the less educated in the United Kingdom are
29、similar to the OECD average 15 Figure 1.5.Disaprities in employment rates across the United Kingdom for mid-to-late career workers are significant 16 Figure 1.6.There are large disparities in employment rates between ethnic groups in the United Kingdom 17 Figure 1.7.Inactivity due to long-term sickn
30、ess as been trending upwards since the pandemic 18 Figure 1.8.The level of inactivity among workers aged 50-64 remains close to the OECD average 19 Figure 1.9.Unemployment for late career workers has become less persistent but more common 20 Figure 1.10.Hiring managers prefer younger candidates for
31、AI-intensive roles 21 Figure 1.11.Career mobility declines dramatically by mid-career 22 Figure 1.12.Feeling undervalued and low pay are key reasons for changing jobs for mid-to-late career workers in the United Kingdom 24 Figure 1.13.The shift to part-time work rises among mid-to-late career worker
32、s 25 Figure 1.14.More recent generations are more likely to be employed in professional or technical occupations 26 Figure 1.15.Growth in real wages has been very poor over the last two decades 27 Figure 1.16.There are substantial disparities in wages across the United Kingdom 28 Figure 1.17.The inc
33、idence of low pay starts to rise as workers get older 29 Figure 1.18.Self-employment rises with age 30 Figure 1.19.Women are more likely to provide unpaid care than men 31 Figure 1.20.Employment protection legislation in the United Kingdom is weak relative to most other OECD countries 32 Figure 2.1.
34、Job search difficulty increases with age and confidence declines with age 40 Figure 2.2.The United Kingdom spends very little on active labour market policies 52 Figure 2.3.Use of the public employment service among unemployed people is very low in the United Kingdom 53 Figure 2.4.Public spending on
35、 unemployment is very low in the United Kingdom 58 Figure 2.5.Work entry rates among unemployed benefit recipients have been declining 59 Figure 2.6.Skills shortage vacancies are growing 62 Figure 2.7.Job specific training and health and safety training is most commonly provided by employers 64 Figu
36、re 2.8.Employers are expanding the availability of AI training resources for employees 65 Figure 3.1.Statutory maternity pay is low in the United Kingdom compared to other OECD countries 88 Figure 3.2.Mid-to-late career workers find that using AI in the workplace can improve job quality 91 Figure 3.
37、3.Management practices are showing signs of improvement over time 93 Figure 3.4.Businesses with higher management scores were more likely to seek formal training 94 Figure 3.5.Flexible working arrangements offered by employers in the United Kingdom 95 Figure 3.6.Older workers report widespread exper
38、ience of discrimination 96 Figure 3.7.Statutory sick pay in the United Kingdom offers a very low level of income protection compared to the systems in other OECD countries 100 Figure 3.8.Employment rates by age and ethnicity for disabled and non-disabled workers,2022/23 110 Annex Figure 1.A.1.Differ
39、ences in inactivity across regions/nations are large 36 7 PROMOTING BETTER CAREER MOBILITY FOR LONGER WORKING LIVES IN THE UNITED KINGDOM OECD 2024 Executive summary Offering workers with diverse needs and experiences a range of options and greater opportunities for career transitions is essential t
40、o keeping them engaged in the workforce for longer.The ability to navigate career and job changes throughout ones 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
41、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 resil
42、ient labour market and to meet rising and persistent labour shortages.Job mobility as an effective response to future labour market challenges The United Kingdoms workforce is undergoing a seismic shift,with mid-to-late career workers and those of traditional retirement age increasingly dominating t
43、he 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 influ
44、x 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 substa
45、ntial barriers when seeking to change jobs.Lifelong guidance and learning opportunities in mid-career to promote job and career switches 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
46、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 pe
47、ople 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 guida
48、nce,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 incons
49、istent,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 t
50、he green transition.Existing education and training systems in the United Kingdom are not sufficiently flexible to accommodate the lifelong learning needs of individuals,8 PROMOTING BETTER CAREER MOBILITY FOR LONGER WORKING LIVES IN THE UNITED KINGDOM OECD 2024 particularly older workers and low-ski
51、lled 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-dem
52、and 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 fo
53、r a full roll-out of promising policies is often low or not sustained.Enhancing job quality for employee retention and progression at older ages Key aspects of good job quality such as fair pay and working conditions,good physical and mental health,and opportunities for continued learning,are crucia
54、l 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%).Work
55、place 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 oppo
56、rtunities 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 incr
57、ease 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 engage
58、ment 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 a
59、nd 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
60、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 disabili
61、ties 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
62、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 manageme
63、nt 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 work
64、ers who have been sick.9 PROMOTING BETTER CAREER MOBILITY FOR LONGER WORKING LIVES IN THE UNITED KINGDOM OECD 2024 The demographic shift taking place in the United Kingdom presents the potential for a“longevity dividend”that could boost productivity and job satisfaction if traditional retirement and
65、 work patterns are rethought.Employment rates for mid-to-late career workers have risen significantly in recent decades,although rates for many groups such as women and ethnic minorities lag behind.Job mobility and career progression are vital for retaining employees in the labour market.Many worker
66、s may need or want to change jobs due to physical demands,health issues,caregiving responsibilities,or shifting preferences.Policy makers,employers and social partners must focus on enhancing job quality to maximise workforce potential.Opportunities for growth and upskilling keeps employees engaged
67、and reduces the risk of premature exit from the workforce.While maintaining good physical and mental health is essential for longer working lives.1 Career mobility in the United Kingdom:Evidence and insights from recent trends 10 PROMOTING BETTER CAREER MOBILITY FOR LONGER WORKING LIVES IN THE UNITE
68、D KINGDOM OECD 2024 Key messages The United Kingdom is experiencing a demographic transition which represents opportunities for realising a longevity dividend.The share of people aged over 65 is projected to reach 25.1%by 2050 up from 19.6%in 2024.This shift presents both challenges and opportunitie
69、s,including the potential for a“longevity dividend”that can drive productivity,provided traditional retirement and work patterns are rethought.Employment rates for mid-to-late career workers have increased dramatically in recent decades.Between 2000 and 2023,the employment rate for those aged 50-64
70、rose from 50.8%to 65%,and for 65-69 year-olds from 11.3%to 26%.Women aged 60-64 saw a particularly steep rise,from 25.5%to 50.1%.However,late career workers still face lower employment rates compared to younger groups.People from minority ethnic groups,and those with lower education levels have belo
71、w average employment rates.The employment rate for Pakistani and Bangladeshi individuals aged 50-64,for example,is 60%,well below the overall average of 65%.Workers aged 55-64 with tertiary education have an 86.7%employment rate,compared to 61.6%for those with below upper secondary education.Signifi
72、cant spatial employment disparities exist.Regionally,employment rates vary from 70.1%in the South East to 60.1%in Northern Ireland.Inactivity among late career workers has risen since the COVID-19 pandemic.Labour market inactivity among those aged 50-64 has increased from 25.5%in early 2020 to 27.2%
73、by 2023.Health issues and early retirement are key drivers of this trend,particularly among men and those in professional occupations.Job,occupational or career transitions can be challenging for mid-to-late career workers.Job and occupational mobility declines with age,and job mobility has been sta
74、gnant or declining over the last couple of decades.Workers aged 55-64 have job transition rates of only 5.9%,compared to 11.3%for younger workers.This reduced mobility can limit wage growth,career progression,and adaptability in response to economic or technological shifts.Job mobility and career pr
75、ogression can play a crucial role in retaining employees in the labour market.Many workers may need or want to change jobs or careers due to the physical demands of their current job,health constraints,caregiving responsibilities,or simply due to a change in preferences.Offering opportunities for gr
76、owth,development,and upskilling keeps employees engaged and motivated,reducing the likelihood of premature labour market exit.Policy makers must address the age-related decline in job mobility by promoting good job quality.In addition to fair wages,factors such as opportunities for lifelong learning
77、 and skill development are crucial.Improving workplace health for older workers is essential to extending their working lives.By prioritising workplace health,employers,governments and social partners can reduce absenteeism,enhance productivity,and retain valuable experienced workers,contributing to
78、 a more inclusive and resilient workforce.Flexible work options can help older workers manage transitions while balancing other commitments.By improving job quality for all ages,a more dynamic and inclusive labour market can be created,maximising workforce potential and promoting economic growth.11
79、PROMOTING BETTER CAREER MOBILITY FOR LONGER WORKING LIVES IN THE UNITED KINGDOM OECD 2024 1.1.Introduction The world is being transformed by a longevity transition a significant shift in how gains in life expectancy are realised.In the early 20th century,most increases in life expectancy occurred ea
80、rly in life,with less than 20%of gains realised after age 65(Eggleston and Fuchs,20121;Scott,20212;Scott,20213).However,by the end of the 20th century,over 75%of life expectancy gains were occurring after age 65.Attention is often focused on the negative consequences of an“ageing society”,yet the po
81、tential benefits from a longevity dividend are immense.There is a need to shift focus from an“ageing society”to a“longevity society”,encompassing the potential benefits of increased life expectancy.The increase in life expectancy has been one of the most remarkable achievements of the past century.I
82、n the United Kingdom female life expectancy in 1951 was 71.5 and male life expectancy was 66.4.In 2020-22 average female and male life expectancy had risen to 82.6 and 78.6 respectively.In 2000 15.8%of the United Kingdoms population was 65 or over,by 2024 this had risen to 19.6%,and is projected to
83、rise to 25.1%by 2050.Over the last couple of decades population growth has been driven by growth in older people.Between 2000-22 the population aged 50-64 grew by 2.5 percentage points,while the population aged 65-69 and 70-74 grew by 0.6 and 0.7 percentage points respectively(Figure 1.1).This contr
84、asts with a decline in the population aged below 54.Further,the population aged 65 and above is projected to grow by 2050.This demographic revolution presents both challenges and opportunities for societies worldwide.Figure 1.1.The shifting drivers of population growth:the growing impact of older co
85、horts Percentage point change in population by age group,the United Kingdom and OECD average Source:OECD Data Explorer Historical population data(data 2000-22)and OECD Data Explorer Population projections(data 2022-50).StatLink 2 https:/stat.link/oi1uwt Capturing the benefits of a“longevity dividend
86、”could result in economy-wide productivity improvements,but this requires rethinking traditional notions of retirement and work-life patterns(Scott,20212;Scott,20213).Two key challenges are ensuring that people are healthier for longer and productive and engaged for longer.Healthier lives mean trans
87、lating increased longevity into an extension of healthy and productive life,rather than simply adding years of disability to the end of life.Ensuring that people are productive and engaged for longer does not necessarily mean working in the same job or capacity until a much later age,but rather reim
88、agining career trajectories and work patterns to accommodate longer lifespans.The traditional three-stage life(education,work,retirement)is becoming obsolete.Multi-stage careers allow for-2.5-1.5-0.50.51.52.53.5-2.5-1.5-0.50.51.52.53.515-2425-3435-4445-5455-6465-6970-74%points%points2000-22 United K
89、ingdom2022-50 United Kingdom 2000-22 OECD 2022-50 OECD12 PROMOTING BETTER CAREER MOBILITY FOR LONGER WORKING LIVES IN THE UNITED KINGDOM OECD 2024 transitions,reskilling,and different types of work throughout a longer lifespan.This approach reflects that people may need to leave or reduce their labo
90、ur market activity due to caring responsibilities etc and that continuous learning and adaptation in response to changing labour market demands may be necessary.Given the population trends outlined above,employers in the United Kingdom need to realise that the workforce of the future is largely the
91、workforce they already have.Retaining experienced employees not only allows companies to benefit from their skills and institutional knowledge but also mitigates the high costs associated with turnover,such as recruitment and training of new staff.As the workforce ages,retaining older employees thro
92、ugh adaptive career strategies is vital for maintaining organisational stability and productivity.Contrary to stereotypes,older workers can be highly productive.Research shows that while individual productivity might decline with age,there are positive spillover effects of an age diverse workforce,s
93、uch that age-diverse workplaces have been associated with increased productivity and performance(OECD,20204).Career progression plays a crucial role in retaining employees,particularly those who are continuing to work later in life.Offering opportunities for growth,development,and upskilling keeps e
94、mployees engaged and motivated,reducing the likelihood of attrition.For older workers,career advancement might take the form of mentorship roles,project leadership,or lateral moves that reflect their accumulated expertise.With longevity on the rise,companies must foster environments that not only al
95、low for career development over a longer time span but also adapt to the changing needs and preferences of older employees.Understanding the age-related decline in job and occupational mobility is crucial for policy makers.Initiatives that promote lifelong learning and continuous skill development c
96、an help older workers maintain their adaptability and mobility in the labour market.Encouraging employers to offer flexible work options may facilitate job transitions for older workers who seek new opportunities while managing other life commitments.Additionally,strengthening measures to prevent ag
97、e discrimination in hiring and promotion can help ensure that older workers have access to diverse job opportunities.By addressing the factors that contribute to declining mobility with age,policy makers and employers can work towards creating a more dynamic and inclusive labour market for workers o
98、f all ages in the United Kingdom.This approach can help maximise the potential of the workforce,promote economic growth,and ensure better outcomes for workers throughout their careers.Unlocking the potential of older workers is essential for countries and employers to benefit from multigenerational
99、workforces.Efforts must be intensified to fully integrate older workers into the workforce.Creating inclusive,multigenerational environments within firms,where career progression opportunities and fair working conditions are accessible to workers of all ages,is a key component of this strategy.Facil
100、itating career mobility to enable workers of all ages to change jobs and occupations when beneficial is crucial for ensuring fulfilling longer working lives.In addition,job and occupational mobility are critical for maintaining a dynamic and adaptive labour market,especially for mid-to-late career w
101、orkers.Mobility allows workers to find better job matches,improve their skills,and potentially increase their earnings.For employers,a mobile workforce can bring fresh perspectives and adaptability.Moreover,career mobility can contribute to personal satisfaction and well-being,which is particularly
102、important as workers age and their career aspirations evolve.1.2.Employment rates in the United Kingdom have improved dramatically for mid-to-late career workers in recent decades Employment rates for mid-to-late career workers in the United Kingdom have improved dramatically in recent decades,funda
103、mentally altering the composition of the labour force.Between 2000 and 2023 the employment rate for 50-64 year-olds steadily increased from 50.8%to 65%(the OECD average rose from 47.5%to 64%);for 65-69 year-olds employment rates have risen from 11.3%in 2000 to 26%in 2023(the 13 PROMOTING BETTER CARE
104、ER MOBILITY FOR LONGER WORKING LIVES IN THE UNITED KINGDOM OECD 2024 OECD average rose from 15.9%to 28.9%),and for 70-74 year-olds the employment rate has risen from 4.7%to 9.3%(the OECD average rose from 8.7%to 16.7%).Employment rates for women have tended to rise faster than for men in most age gr
105、oups over this period(Figure 1.2,Panel A).The employment rate for women aged 55-59 has risen by 14 percentage points from 56.5%to 70.4%,and for women aged 60-64 by 25 percentage points from 25.5%to 50.1%between 2000 and 2023.This trend represents a substantial influx of experienced workers remaining
106、 in or returning to the workforce and reflects individuals extending their careers well beyond the conventional retirement age.Figure 1.2.Employment rates at mid-to-late career have risen dramatically in the last two decades in the United Kingdom Change in employment and activity rates by age and ge
107、nder 2000-23,and overall rates by age Source:OECD calculations based on OECD Data Explorer Employment and unemployment by five-year age group and sex-indicators.StatLink 2 https:/stat.link/dxptf8 0102030405060708090100-505101520253025-2930-3435-3940-4945-4950-5455-5960-6465-69Employment rate,%point
108、changeA.Employment0102030405060708090100-30-25-20-15-10-50525-2930-3435-3940-4945-4950-5455-5960-6465-69Inactivity rate,%point changeB.InactivityMen(change)Women(change)2000(right axis)2023 (right axis)14 PROMOTING BETTER CAREER MOBILITY FOR LONGER WORKING LIVES IN THE UNITED KINGDOM OECD 2024 Howev
109、er,with the recent increase in inactivity in the United Kingdom,policy makers have focused attention on increasing employment with the current government targeting a rate of 80%.In 2000 the 15-64 employment rate was 72.3%,rising to 75.7%in 2023(OECD average rose from 65.5%to 70.1%).In 2023 the 15-69
110、 employment rate was 71.9%(OECD average was 67.0%).This would require a substantial increase in the rate of employment growth to reach 80%by,for example,the end of the current parliament.The flip side of this increase in employment rates has been a decline in rates of inactivity,particularly for wom
111、en(Figure 1.2,Panel B).The overall inactivity rate for those aged 60-64 steadily declined from 61.8%in 2000 to 42.0%in 2019,before climbing to 43.2%by 2023 in the wake of the COVID-19 pandemic(OECD average was 63.4%in 2000 and 43%in 2023).The pre-COVID rise in employment among older individuals was
112、primarily due to a decrease in the proportion of people who are retired or unemployed and experiencing long-term health issues.Several government initiatives have occurred in recent decades aimed at extending working lives,such as raising the state pension age(Amin Smith and Crawford,20185),revising
113、 incapacity benefit programmes(Banks,Blundell and Emmerson,20156)and eliminating mandatory retirement ages in 2011.Nonetheless,its important to recognise that the employment rate for older workers,particularly men,had experienced a significant decline during the 1980s.Although there has been a resur
114、gence in recent years,by 2020,the effective age of labour market exit was still below what it was in 1981(Figure 1.3).This indicates that,despite progress,there is still room for more older individuals to remain active in the workforce.Additionally,the productive capacity of people in their 50s and
115、60s is higher today,as these age groups generally enjoy better health than they did in the mid-1970s.Figure 1.3.The average age of labour market exit has only increased since the mid-2000s Evolution in years of the effective age of labour market exit(EALME)and life expectancy(LE)at the age of 65 by
116、gender,the United Kingdom,1981-2020 Source:OECD Data Explorer Pensions at a glance and OECD Data Explorer Life expectancy.StatLink 2 https:/stat.link/eq83cw 1.2.1.There are significant employment disparities among groups of late-career workers in the United Kingdom Despite this progress,older worker
117、s still have significantly lower employment rates compared to their younger counterparts,and there are differences by gender,education levels,health status and geography,-6-4-202468-6-4-202468YearsYearsEALME,WomenEALME,MenLE at 65,WomenLE at 65,Men 15 PROMOTING BETTER CAREER MOBILITY FOR LONGER WORK
118、ING LIVES IN THE UNITED KINGDOM OECD 2024 for example.In 2023 the employment rate for workers aged 55-64 was 65.0%compared to 84.1%for those aged 45-54(both above the OECD averages of 64.0%and 79.9%respectively).There is an almost 10 percentage point gap in the employment rate for men(69.3%)and wome
119、n(60.9%)aged 55-64 in the United Kingdom(Figure 1.4,Panel A).While the employment rate for women is very close to the OECD average of 59.0%,the rate for men is below the OECD average of 72.5%.Employment rates for workers with tertiary education are lower in the United Kingdom relative to other OECD
120、countries.The employment rate for workers aged 55-64 with tertiary education is 70.3%,below the OECD average of 76.7%,and below the employment rate for this group in Poland(91.5%),Sweden(90.5%),the Netherlands(89.9%)(Figure 1.4,Panel B).Figure 1.4.Employment rates for the less educated in the United
121、 Kingdom are similar to the OECD average Employment rates by gender and level of education,persons aged 55-64,2023 Note:OECD is an unweighted average.Source:OECD Data Explorer Employment and unemployment by five-year age group and sex indicators(Panel A)and OECD Data Explorer Employment rates of adu
122、lts,by educational attainment,age group and gender(Panel B).StatLink 2 https:/stat.link/k9x2d3 102030405060708090100102030405060708090100%A.By genderWomenMen102030405060708090100102030405060708090100%B.By level of educationBelow upper secondaryUpper secondary or post-secondary non-tertiaryTertiary16
123、 PROMOTING BETTER CAREER MOBILITY FOR LONGER WORKING LIVES IN THE UNITED KINGDOM OECD 2024 The United Kingdom performs better relative to other countries among workers with below upper secondary education.At 55%,the employment rate for 55-64 year-olds is higher than the OECD average of 50.4%.However
124、,there is a 15.3 percentage point gap compared to the employment rate for those in the same age group with tertiary qualifications(70.3%).Further,it is also below the employment rate of low educated workers in many countries such as Iceland(69.9%),New Zealand(67.9%),the Netherlands(65.6%),Korea(62.5
125、%)and Germany(60.7%)among others which are higher than 60%.Employment rates for individuals aged 50-64 vary significantly across regions and nations of the United Kingdom,revealing notable disparities.The South East of England consistently demonstrates the highest employment rate for women in this a
126、ge group,reaching 70.1%in 2023(Figure 1.5,Panel B).In contrast,Northern Ireland has the lowest rate at 60.1%.Among English regions,the East Midlands lags behind with the lowest employment rate at 63.9%.Although the gap between the highest and lowest performing regions has narrowed slightly in recent
127、 years,regional variations,with northern cities and towns generally experiencing lower employment rates and higher levels of economic inactivity among older workers compared to their southern counterparts.Figure 1.5.Disaprities in employment rates across the United Kingdom for mid-to-late career wor
128、kers are significant Employment rates by age,gender and region/nation,2023 Note:No data available for age group 25-49 for Northern Ireland.Source:OECD calculations based on data from the Office for National Statistics,www.ons.gov.uk/.StatLink 2 https:/stat.link/culmg7 Employment rates for individual
129、s aged 50-64 vary significantly across different ethnic groups in the United Kingdom.Among people in this age group,those from white other and Asian other have the highest employment rates at 78%and 76%respectively(Figure 1.6).In contrast,the combined Pakistani and Bangladeshi ethnic group has the l
130、owest employment rate at 60%,which is 11 percentage points below the overall average of 65%.These disparities can be attributed to various factors that affect employment and opportunities for career progression.Health inequalities play a role,with Bangladeshi and Pakistani individuals reporting lowe
131、r rates of good self-reported health(Mirza and Warwick,20247).Discrimination is another significant barrier,as racial and age discrimination compound to create additional obstacles for older workers from ethnic minority backgrounds.Occupational concentration in specific industries or job 01020304050
132、60708090100Northern IrelandWalesEast MidlandsNorth EastNorth WestWest MidlandsScotlandYorkshire and The HumberEast of EnglandLondonSouth WestSouth East%A.35-490102030405060708090100Northern IrelandWalesEast MidlandsNorth EastNorth WestWest MidlandsScotlandYorkshire and The HumberEast of EnglandLondo
133、nSouth WestSouth East%B.50-640102030405060708090100Northern IrelandWalesEast MidlandsNorth EastNorth WestWest MidlandsScotlandYorkshire and The HumberEast of EnglandLondonSouth WestSouth East%C.65+WomenMen 17 PROMOTING BETTER CAREER MOBILITY FOR LONGER WORKING LIVES IN THE UNITED KINGDOM OECD 2024 t
134、ypes can limit career advancement opportunities and make certain groups more vulnerable to economic shocks(Mirza and Warwick,20247).Educational attainment,while improving for some groups like young Bangladeshis,does not always translate into commensurate labour market outcomes,indicating persistent
135、barriers to career progression.The persistence of these employment disparities,even among groups with high educational attainment,suggests ongoing challenges in accessing higher-level positions and career advancement opportunities.The intersectionality of race,age,and gender creates compounded barri
136、ers for certain groups,further limiting their employment prospects(Mirza and Warwick,20247).Addressing these underlying issues is crucial for improving employment outcomes and career opportunities for all ethnic groups in the United Kingdom.Figure 1.6.There are large disparities in employment rates
137、between ethnic groups in the United Kingdom Percentage point deviation from average employment rate by ethnic group and broad age group,2022 Source:OECD calculations based on data from the Office for National Statistics,www.ons.gov.uk/.StatLink 2 https:/stat.link/liqtrn 1.2.2.Inactivity among late c
138、areer workers has been rising in the United Kingdom since the COVID-19 pandemic Since the onset of the COVID-19 pandemic,the United Kingdom has experienced a notable increase in economic inactivity among older workers,particularly those aged 50-64.This trend has bucked the historical pattern of decl
139、ining inactivity rates for this age group and has raised concerns among policy makers and economists.Between the end of 2019 and the end of 2022,approximately 280 000 more people aged 50-64 became economically inactive.This increase pushed the inactivity rate for this age group from 25.5%at the star
140、t of the pandemic to 27.2%in November to January 2023.Many older workers chose to retire earlier than previously planned.Between April 2019 and September 2022,154 400 more people in the 50-64 age group cited retirement as their main reason for not working or seeking work.There has also been a signif
141、icant increase in the number of older workers leaving the workforce due to illness(Figure 1.7).In the same period,137 700 more individuals aged 50-64 reported short-or long-term illness as their primary reason for inactivity.Women were more likely to cite family responsibilities as a reason for inac
142、tivity,while men were more likely to mention retirement or health issues.-15-10-50510White otherAsian otherBlackMixedIndianWhiteAsianWhite BritishOtherPakistani,Bangladeshi%points25-4950-6418 PROMOTING BETTER CAREER MOBILITY FOR LONGER WORKING LIVES IN THE UNITED KINGDOM OECD 2024 The increase in in
143、activity among older workers has not been uniform across all sectors and occupations.Professional occupations saw the largest volume increase in the flow of workers aged 50-70 years into economic inactivity.Industries such as professional,scientific,and technical activities experienced the most sign
144、ificant changes,with a 4.2 percentage point increase in the proportion of workers moving to inactivity.Figure 1.7.Inactivity due to long-term sickness as been trending upwards since the pandemic Inactivity due to long-term sickness(persons aged 16-64)by sex,1994-2023(seasonally adjusted)Source:Offic
145、e for National Statistics(ONS),Table INAC01.StatLink 2 https:/stat.link/4i82hg Although inactivity in the United Kingdom has recently increased,the rate for 50-64 year-olds was 26.8%in 2023,just below the OECD average of 28.4%(Figure 1.8).However,this was much higher than the rate in countries such
146、as Sweden(14%),New Zealand(16.8%),the Netherlands(19.9%)and Germany(19.9%),although it is lower than countries such as the United States(29.3%),France(29.5%)and Italy(33.3%).There is considerable variation in inactivity rates among 65-69 year-olds across the OECD.At 73.5%the rate in the United Kingd
147、om is above the OECD average of 70.2%,but well below the rate of most European OECD countries such as Germany(79.3%),Italy(84.9%),and France(88.9%).In Japan,Korea and Iceland the inactivity rate is between 45-50%.There are also considerable differences in the rate of inactivity across the regions an
148、d nations of the United Kingdom.For women aged 50-64 inactivity is 38.9%in Northern Ireland and 37.2%in Wales,compared to 28.4%in London and 28.7%in the South East(Annex Figure).For men in this age group inactivity is 17.3%in the South East,and almost double at 31.8%in Northern Ireland.0 200 400 600
149、 8001 0001 2001 4001 6001 800 0 200 400 600 8001 0001 2001 4001 6001 800ThousandsThousandsMenWomen 19 PROMOTING BETTER CAREER MOBILITY FOR LONGER WORKING LIVES IN THE UNITED KINGDOM OECD 2024 Figure 1.8.The level of inactivity among workers aged 50-64 remains close to the OECD average Inactivity rat
150、es among workers aged 50-64 and 65-69,2023 Note:OECD is a weighted average.Data for inactivity for Australia are unavailable for age group 65-69.Source:OECD calculations based on OECD Data Explorer Employment and unemployment by five-year age group and sex-levels.StatLink 2 https:/stat.link/jmhiyg 1
151、.2.3.Long-term unemployment also poses a considerable challenge for older workers The rapid pace of technological change,including developments in artificial intelligence(AI),and the ongoing transition to a greener economy are poised to significantly disrupt labour markets in the coming years.These
152、shifts are likely to lead to substantial job displacement and the need for workers to adapt to new roles and industries.For mid-to-late career workers,the risks associated with these labour market shifts are especially pronounced.Workers aged 55 and above are more likely to become long-term unemploy
153、ed after losing their jobs compared to younger age groups(Chan and Stevens,20018;Deelen,de Graaf-Zijl and van den Berge,20189;Huttunen,Men and Salvanes,201110).In the United Kingdom the proportion of long-term unemployed(i.e.unemployed for 12 months or more)is generally higher among those aged 55-64
154、 than those aged 25-54(Figure 1.9).However,the share of long-term unemployment among older individuals has declined since 2015,paralleling a similar trend among younger people.The sharp drop in 2020 was due to a significant influx of newly unemployed individuals resulting from the COVID-19 crisis.Co
155、ncurrently,the share of all unemployed individuals who are aged 55-64 has been increasing since 2009,reflecting a higher number of older people remaining in the labour force longer.The increasing trend of older individuals among the unemployed suggests that employment and skills policies need to foc
156、us more on this group to prevent long-term unemployment.01020304050607080901000102030405060708090100%50-6465-6920 PROMOTING BETTER CAREER MOBILITY FOR LONGER WORKING LIVES IN THE UNITED KINGDOM OECD 2024 Figure 1.9.Unemployment for late career workers has become less persistent but more common Share
157、 of unemployment and long-term unemployed(LTU),by broad age groups,the United Kingdom,2000-23 Note:Long-term unemployed are persons unemployed for one year and over.Source:OECD calculations based on OECD Data Explorer Employment and unemployment by five-year age group and sex-levels and OECD Data Ex
158、plorer Unemployment by duration.StatLink 2 https:/stat.link/lix7zg 1.2.4.Workers of all ages are exposed to risks from technological change The impact of AI on employment and wages is complex and remains a topic of ongoing debate.AI can drive productivity gains,yet the extent to which workers benefi
159、t from these gains is uncertain.While some view AI as an avenue for augmenting human capabilities and creating complementary roles,it also has the potential to automate tasks traditionally performed by people.This can lead to a“decoupling”effect,where productivity increases without corresponding wag
160、e growth or employment opportunities,particularly in low-and middle-income occupations.Studies suggest that high-wage and highly educated workers may benefit more,as they are often better positioned to use AI to enhance their productivity(Lane and Saint-Martin,202111).Older workers face specific cha
161、llenges in adapting to the AI-driven job market(Lassbie and Quintini,202212).They often experience greater difficulty in transitioning to new roles that require advanced digital skills,partly due to lower mobility and fewer incentives for retraining.Although older,more experienced workers in high-sk
162、illed positions may benefit from AI,they generally lack the same flexibility as younger workers in adapting to changing task demands.Age-biased technological change can exacerbate this divide,as older workers may find their roles more vulnerable to automation with fewer options for reskilling.On the
163、 other hand AI may increase the value of hard-to-replace skills,such as management experience and tacit knowledge(Autor,201513),in which older workers may often have a comparative advantage.Recent evidence from a survey undertaken by Generation in the United Kingdom,France,Ireland and Spain shows th
164、at hiring managers have a clear preference for younger candidates for roles that regularly use AI tools(Figure 1.10).010203040506002468101214162000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023%LTU%unemploymentShare of unemployment
165、,55-64Share of LTU,55-64Share of LTU,25-54 21 PROMOTING BETTER CAREER MOBILITY FOR LONGER WORKING LIVES IN THE UNITED KINGDOM OECD 2024 Figure 1.10.Hiring managers prefer younger candidates for AI-intensive roles European hiring managers likelihood to consider candidates for roles that regularly use
166、 AI tools by age group Note:n=552.France,Ireland,Spain and the United Kingdom.Rows may not add to 100%due to rounding.Source:Generation AI survey(2024).Age-proofing AI Enabling an intergenerational workforce to benefit from AI.StatLink 2 https:/stat.link/sx6ml1 Technological changes may also lead to
167、 early retirement,depending on job tasks and available employer policies or social insurance systems.Results from the United States suggests that jobs with more automatable skills can influence retirement decisions,though the effect remains modest alongside other factors like income and pension acce
168、ss(Lee,202314).While automation may drive some older workers to retire early or pursue reskilling,it can also enhance productivity and potentially increase wages,providing incentives to remain employed(Ahituv and Zeira,201015;Burlon and Vilalta-Buf,201616).Whether productivity gains outweigh the nee
169、d for upskilling in delaying retirement depends on employer-provided training and the availability of unemployment benefits to support workers until retirement(Messe,Moreno-Galbis and Wolff,201417;Yashiro et al.,202018).Early retirement driven by these factors may pose fiscal challenges for governme
170、nts due to the high number of long-term unemployed older workers.The transition to AI calls for proactive policies to support older and lower-skilled workers who may face disproportionate impacts from automation.Reskilling initiatives and workplace adjustments can help prevent widespread displacemen
171、t,promoting a fairer distribution of AIs benefits across the workforce.The success of these interventions will depend on companies commitment to supporting their employees through these changes.Specifically,there is a growing need for measures to help older workers transition to new roles,such as ta
172、rgeted retraining,career counselling,and incentives for employers to invest in their development.Such preventative actions aim to reduce the risk of long-term unemployment among older workers and enable their continued,productive participation in the labour market.1.3.Opportunities for career progre
173、ssion fall as workers age Career mobility is widely recognised as a key driver of wage growth and career advancement in the early stages of workers careers(Topel and Ward,199219;Hahn et al.,201720).However,discussions typically concentrate on younger workers,often overlooking the importance of caree
174、r mobility for those in mid-to-late career.Enhancing career mobility for older workers can potentially lead to more satisfying and prolonged working lives.0%10%20%30%40%50%60%70%80%90%100%Under 2525 to 3435 to 4445 to 5455 to 6465 and overVery likelySomewhat likelyNeutralNot very likelyNot at all li
175、kely22 PROMOTING BETTER CAREER MOBILITY FOR LONGER WORKING LIVES IN THE UNITED KINGDOM OECD 2024 As workers age,they tend to experience a decrease in both job-to-job transitions and changes in occupations.Job-to-job mobility rates in 2022 were about 11.3%among workers aged 30-35,falling to about 7.7
176、%by age 45,5.9%by age 55,and 3.2%by age 65(Figure 1.11,Panel A).In the United Kingdom,around 55%of employees felt they had good prospects for career advancement,with similar levels of optimism across England,Scotland,Wales,and Northern Ireland.However,the percentage of employees who felt they had go
177、od career progression opportunities rises with age,peaking at 64%for those aged 25-34,before declining to 33%among those over 65(Figure 1.11,Panel B).Men aged 25-44 were significantly more likely than women in the same age group to report favourable career advancement prospects.This difference may b
178、e attributed to women in these age ranges taking breaks from work or switching to part-time schedules for childcare,which tends to reduce perceived opportunities for career progression.Full-time workers were more likely to perceive strong career progression opportunities than part-time workers,with
179、60%of male full-timers and 59%of female full-timers reporting this compared to only 33%and 43%of part-timers,respectively(Figure 1.11,Panel C).Additionally,employees who had completed an undergraduate degree were more likely to see good advancement prospects(60%)than those with lower qualifications,
180、such as GCSEs,where only 47%shared this view.Figure 1.11.Career mobility declines dramatically by mid-career Source:OECD calculations based on the UK Labour Force Survey(Panel A)and Office for National Statistics(ONS)Annual Population Survey(Panels B and C).StatLink 2 https:/stat.link/o3ky47 0246810
181、12141618200246810121416182020222426283032343641404244464850525456586062646668%A.Job-to-job and occupational change,2022Job-to-job changeOccupational change01020304050607025-3435-4445-5455-6465+%B.Career progession by age and gender,2021Share who reported good career progression opportunitiesMenWomen
182、010203040506070WomenMenWomenMenFull-timePart-time%C.Career progression opportunities by employment status and gender,2021OpportunitiesNo opportunities 23 PROMOTING BETTER CAREER MOBILITY FOR LONGER WORKING LIVES IN THE UNITED KINGDOM OECD 2024 This decline in career mobility over the lifecycle is la
183、rgely due to improvements in the quality of job matches between employees and employers.As workers accumulate experience,they are more likely to secure positions that better align with their skills,qualifications,and preferences.Although the quality of a job match is not directly measurable,job dura
184、tion often serves as a useful indicator.Job retention increases with age,suggesting that older workers are more likely to have found a suitable match with their employer(OECD,202321).Additionally,the accumulation of firm-specific skills can make it more difficult or less advantageous for older worke
185、rs to transition to new roles.The value of these skills within their current organisation may outweigh the potential benefits of moving to a new job or career.Family and financial commitments also play a role,as older workers are more likely to have established families and financial obligations tha
186、t can make them more risk-averse when it comes to changing jobs or occupations.Conversely,the decline in job and career mobility at mid to late career may also be due to workers facing greater challenges in securing new positions compared to younger workers because of employer biases,and other barri
187、ers to accessing the job market or making career changes.The decline in mobility with age can have significant effects on workers labour market opportunities.Job-to-job transitions are often associated with wage increases,so reduced mobility among older workers may lead to slower wage growth compare
188、d to their younger counterparts(OECD,202422).Furthermore,occupational mobility is frequently linked to career advancement,and the decline in such mobility among older workers can limit their opportunities for progression and skill development.This trend also has implications for the broader economy.
189、Reduced mobility can make older workers more vulnerable to sector-specific economic shocks,as they may find it more challenging to transition to new industries or occupations.This can potentially lead to longer periods of unemployment or underemployment for older workers in declining sectors.Evidenc
190、e suggests that in the United Kingdom,lack of opportunities for career development,feeling undervalued and low pay are major reasons why people aged 30-64 change jobs(Figure 1.12).Longer working lives also means that as employees get older,initially strong job matches may weaken due to shifting pref
191、erences,health issues(including disabilities),caregiving responsibilities,or the decline of certain skills.Older workers are more likely to encounter health-related barriers to employment(OECD,202223),with chronic illnesses being major factors behind early exits from the labour market(OECD,202321).A
192、s health deteriorates with age,managing work alongside certain medical conditions may become increasingly challenging.While not all individuals with disabilities can continue working,research indicates that many are still willing and able to remain employed,provided they receive adequate support and
193、 accommodations(OECD,202223).However,in some cases,the nature of the job may not allow for effective adaptations.In such situations,job or career mobility either moving to a different role within the same company or transitioning to a new employer or new occupation becomes necessary for continued pa
194、rticipation in the workforce.24 PROMOTING BETTER CAREER MOBILITY FOR LONGER WORKING LIVES IN THE UNITED KINGDOM OECD 2024 Figure 1.12.Feeling undervalued and low pay are key reasons for changing jobs for mid-to-late career workers in the United Kingdom Share who responded to the question“Why did you
195、 retire,leave,or consider leaving your job”?Note:Persons who replied among those who retired from work or a job,voluntarily left a job/resigned,or started a new job in the last five years.Source:AARP Global Employee Survey.Online survey conducted in June/July 2022 of employees aged 25 and over in th
196、e United Kingdom.Approximately 1 000 respondents.StatLink 2 https:/stat.link/19rlox Care responsibilities,initially significant for younger workers due to childcare,may resurface later in life as workers provide informal care for parents and partners.On average,around 13%of people aged 50 and over i
197、n OECD countries frequently provide informal care,with 62%of these caregivers being women(OECD,202124).Informal caregiving contributes to lower employment and earnings levels,particularly among women and older workers(Maestas,Messel and Truskinovsky,202425).Caregivers often face difficulties re-ente
198、ring the labour market after caregiving obligations end,exacerbating employment and earnings disparities(Vangen,202126).This issue compounds the“motherhood penalty”and the“price of being female”,which create wage divergences between men and women over time due to childbirth(Goldin,Kerr and Olivetti,
199、202227).With the growing proportion of the population over 65,the demand for caregiving will increase,often without a corresponding rise in publicly funded caregiving.Consequently,workers increasingly seek jobs with flexible working hours to balance work and caregiving responsibilities,preventing ea
200、rly labour market exit.Evidence suggests that the value workers place on different workplace characteristics evolves with age.Older workers tend to prioritise flexible working environments,including flexible hours and geographical flexibility(Maestas et al.,202328;Hudomiet et al.,202129;Ameriks et a
201、l.,202030).For example,(Ameriks et al.,202030)found that older workers in the United States would accept up to a 20%hourly wage reduction for more flexible work arrangements.This preference for flexibility may have been accelerated by the COVID-19 pandemic(OECD,202321).Additionally,Maestas et al.(20
202、2328)and Hudomiet et al.(202129)found that older workers also prefer jobs with less physical activity and stress.While job stability is suitable for workers who are content in their current positions and do not wish to change,evolving labour market conditions,driven by population ageing and technolo
203、gical advancements,may compel workers to seek new job opportunities.To navigate these changes successfully,workers need adaptability,mobility and resilience.05101520253035400510152025303540FeltundervaluedLow payTo follow anew passionor careerWasexperiencinghealthproblemsLack ofadvancementin my jobRe
204、ceived anattractiveoffer to workfor anotheremployerLack ofprofessionaldevelopmentin my jobLimited or noflexible workoptionsPoor workingconditionsCaregiving Poor benefits(i.e.,healthinsurance,retirement,caregivingleave)%55-6430-5425-29 25 PROMOTING BETTER CAREER MOBILITY FOR LONGER WORKING LIVES IN T
205、HE UNITED KINGDOM OECD 2024 Older workers,in general,change occupations and employers less frequently than younger ones.The likelihood of switching occupations over the course of a year decreases consistently with age,dropping from 6%for workers aged 35-44 to 3.5%for those aged 55-64,and further dow
206、n to 3%for individuals in their late 60s(Figure 1.13).Among workers aged 55-64,approximately 7%transitioned to part-time roles within a year on average between 2018-22,with about 11%of 65-69 year-olds also switching to part-time work.About 1%of older employees moved into self-employment within a yea
207、r.Part-time work and self-employment are important forms of economic participation for older workers and are common pathways for those transitioning between regular employment and self-employment as they approach retirement.Figure 1.13.The shift to part-time work rises among mid-to-late career worke
208、rs Average over 2018-22 Source:OECD calculations based on the UK Labour Force Survey.StatLink 2 https:/stat.link/xjwzpb Earlier generations were less likely to be employed in managerial,associate professional,and technical roles compared to later generations.This is evident from comparing different
209、birth cohorts at the same age,where the share of workers in these roles is lower in older cohorts and higher in younger ones(Figure 1.14).This trend where younger cohorts have a higher proportion of workers in managerial and professional roles holds true even when comparing those born in the 1960s a
210、nd 1970s.It suggests that people nearing retirement in the coming decades are likely to hold jobs in more“advanced”occupations compared to those who retired in the past decade or so.024681012024681012Job-to-job change rateOccupation changeIndustry changeFull-time to part-timeEmployee to self-employe
211、d%35-4445-5455-6465-6926 PROMOTING BETTER CAREER MOBILITY FOR LONGER WORKING LIVES IN THE UNITED KINGDOM OECD 2024 Figure 1.14.More recent generations are more likely to be employed in professional or technical occupations Share of workers in major occupation(managerial,professional,associate profes
212、sional and technical combined)by 5-year birth cohorts and age Note:Managerial,professional,associate professional and technical occupations include the first three major groups of the 2010 Standard Occupational Classification.Source:OECD calculations based on the UK Labour Force Survey.StatLink 2 ht
213、tps:/stat.link/q86x5s 1.4.Balancing employment rates and job quality:a dual focus is essential Focusing on both job quality and employment rates is crucial for mid-to-late career workers,as it ensures not only access to jobs but also meaningful and sustainable employment.While increasing employment
214、rates among mid-to-late career workers is important for economic stability and reducing dependency,the quality of these jobs such as fair wages,suitable working conditions,and opportunities for skill development directly affects their well-being,productivity,and job satisfaction.A dual focus helps c
215、reate a work environment where older workers can continue to contribute effectively while maintaining their health and quality of life.1.4.1.Real wage growth has been fairly stagnant in the United Kingdom over recent decades Over the past couple of decades,the United Kingdom has experienced a prolon
216、ged period of wage stagnation,with minimal growth in real wages for most workers.This trend has been particularly pronounced since the global financial crisis of the late 2000s.Between 1970 and 2007 real wages grew by 33%per decade from 1970 to 2007(Resolution Foundation&Centre for Economic Performa
217、nce,202331).Between 2010 and 2023 average real wages grew by about 2.5%,well below growth of almost 15%in the United States,and 12%in Germany and Norway(Figure 1.15).Some estimates suggest that the average worker has lost out on approximately GBP 10 700 per year in potential wage growth due to this
218、prolonged period of stagnation(Resolution Foundation&Centre for Economic Performance,202331).This weak wage growth is consistent with weak productivity and investment growth,and some 01020304050607080010203040506070801619222528313437404346495255586164%1935-391940-441945-491950-541955-591960-641965-6
219、91970-741975-791980-841985-89 27 PROMOTING BETTER CAREER MOBILITY FOR LONGER WORKING LIVES IN THE UNITED KINGDOM OECD 2024 suggest that it is a major cause of the rise in labour supply that has driven rising employment(Bell and Gardiner,201932).Figure 1.15.Growth in real wages has been very poor ove
220、r the last two decades Percentage change in real average wages,2010-23 Note:Average annual wages per employee in full-time equivalent unit in the total economy.Average annual wages per full-time equivalent dependent employee are obtained by dividing the national-accounts-based total wage bill by the
221、 average number of employees in the total economy,which is then converted in full-time equivalent unit by applying the ratio of average usual weekly hours per full-time employee to that of all employees.Source:OECD calculations based on OECD Data Explorer Average annual wages.StatLink 2 https:/stat.
222、link/yv0qze Despite the overall trend of wage stagnation,there has been some positive movement at the lower end of the wage distribution.The introduction and subsequent increases in the minimum wage,particularly the National Living Wage(NLW)introduced in 2016,have played a crucial role in boosting e
223、arnings for the lowest-paid employees.Between 2011 and 2019,the earnings of low-earning employees grew twice as fast as median earnings(Low Pay Commission,202033).Its real value for those aged 25 and over has increased by 60%since 1999 and 20%since 2015.This policy has not only affected those earnin
224、g the minimum wage but has also had spillover effects,indirectly boosting wages for workers earning slightly above the minimum wage.However,its important to note that while the minimum wage has helped protect the earnings of many low-paid workers,not all workers are covered.A growing fraction of low
225、 earners are missing out on these benefits.For instance,about a quarter of the lowest fifth of earners are now self-employed and thus not covered by the minimum wage.Additionally,cuts in tax credits have offset gains from minimum wage increases for the poorest working households.This underscores the
226、 persistent nature of the United Kingdoms wage growth challenges and the need for continued efforts to boost productivity and address economic inequalities.Spatial disparities in wages across the United Kingdom are also significant and persistent,reflecting deep-rooted economic inequalities between
227、different regions and local labour markets.These disparities are particularly stark when comparing London to other parts of the country.In 2023,average wages in London were 50%higher than those in places such as Leicester and Blackpool,highlighting the considerable economic divide between the capita
228、l and some coastal and rural regions(Figure 1.16).While these wage-9-6-303691215ItalyNetherlandsIrelandSpainUnited KingdomFranceDenmarkSwedenNorwayGermanyUnited States%28 PROMOTING BETTER CAREER MOBILITY FOR LONGER WORKING LIVES IN THE UNITED KINGDOM OECD 2024 disparities are substantial,it is impor
229、tant to note that they are not uniform across all income levels.Much of the difference in wages between areas is driven by higher-paid workers.For instance,in 2019,the top 10%of earners in London were paid GBP 37 per hour,which was over 80%higher than the GBP 20 per hour earned by the top 10%in Scar
230、borough(Overman and Xu,202434).In contrast,the wages of the bottom 10%of earners were relatively similar across the country,ranging from GBP 8 to GBP 9 per hour(Overman and Xu,202434).This suggests that spatial wage inequality is particularly pronounced at the upper end of the income distribution,co
231、ntributing significantly to overall regional economic disparities.Figure 1.16.There are substantial disparities in wages across the United Kingdom Average monthly wages,by NUTS3 region,2023 Note:Average monthly pay estimate from HM Revenue and Customs(HMRCs)Pay as You Earn(PAYE)Real Time Information
232、(RTI)data.This covers employees payrolled by employers only.It does not cover self-employment income or income from other sources such as pensions,property rental and investments.Where individuals have multiple sources of income,only income from employers is included.Source:Office for National Stati
233、stics and HM Revenue and Customs.Younger employees,particularly those aged 16-20 years,are most likely to be in low pay,reflecting that you must be at least 23 years old to receive the National Living Wage,with approximately 55%falling into this category(Figure 1.17).The proportion of employees in l
234、ow pay then decreases sharply for older age groups.For those aged 21-24 years,around 20%were in low pay,while for the 35-44 age group,it drops to about 8.9%.From age 45 and above,the share of workers in each age group in low pay starts to rise,particularly for women.At age 55-64,15.5%of women are in
235、 low pay(8.8%of men)and at age 65 and above,19.6%of women are in low pay(15.9%of men).29 PROMOTING BETTER CAREER MOBILITY FOR LONGER WORKING LIVES IN THE UNITED KINGDOM OECD 2024 Figure 1.17.The incidence of low pay starts to rise as workers get older Share of workers in low paid employment by gende
236、r and age group,2022 Source:Office of National Statistics(ONS)Annual Population Survey.StatLink 2 https:/stat.link/smr67h 1.4.2.Older workers shift to part-time working arrangements when changing jobs,although not always by choice Beyond pay and job tasks,a significant consequence of changing jobs a
237、t older ages is a shift to part-time work,although the reasons differ from those of younger workers.On one hand,part-time work can offer valuable flexibility later in life and serve as a pathway to retirement.There is substantial evidence that older workers highly value flexible working conditions(A
238、meriks et al.,201735).This flexibility allows older workers to balance work with family responsibilities,such as caring for elderly relatives,or to pursue other interests part-time.On the other hand,some workers may work part-time because they cannot find full-time jobs.In such cases,part-time work
239、may not provide sufficient income to meet financial needs and may offer fewer opportunities for upward pay progression.Research indicates significant underemployment among older workers(Bell and Blanchflower,202136).The shift from full-time to part-time work associated with job changes can also expl
240、ain the change in job task content experienced by older workers.In the United Kingdom,there is a growing trend towards reduced working hours for older workers as a form of flexible working arrangement.Part-time work is the most common form of flexible working among older employees,allowing them to m
241、aintain a better work-life balance while continuing in roles that interest them.The proportion of individuals working part-time increases with age in the United Kingdom,with the trend being more pronounced among men than women.Among women,part-time employment rises from 7.5%in the 25-34 age group to
242、 16%in the 55-64 age group(Figure 1.18).For men,the share grows from 12%among 25-34 year-olds to 25%among 55-64 year-olds and rises even higher to 43%for those aged 65-69.This rise could result from older workers staying in the labour force longer or moving to part-time jobs as they age,or a combina
243、tion of both.Historically,working time reductions have been an important way that late career workers have adapted to working beyond the age of 65 in the United Kingdom(Lain,201637).Many older workers choose to reduce their hours as a way to phase into retirement gradually,manage caring responsibili
244、ties,or accommodate health concerns.Employers are increasingly recognising the benefits of offering flexible working options to retain the valuable skills and experience of older staff members.However,its important 0510152025303540051015202530354016-2021-2425-3435-4445-5455-6465+%MenWomenTotal30 PRO
245、MOTING BETTER CAREER MOBILITY FOR LONGER WORKING LIVES IN THE UNITED KINGDOM OECD 2024 to note that while reduced hours can benefit many,it may not suit all older workers,and access to such arrangements can vary across different sectors and job types.Figure 1.18.Self-employment rises with age Share
246、of self-employment by age and gender,2022 Source:OECD calculations based on the UK Labour Force Survey.StatLink 2 https:/stat.link/zmucls 1.4.3.Women face bumps in the road towards career advancement Motherhood is widely recognised to have a significant adverse impact on womens career prospects,affe
247、cting both wages and career progression(Healy and Heissel,202038;Kleven et al.,201939;Barth,Kerr and Olivetti,202140;Goldin,Kerr and Olivetti,202227).This so-called“motherhood penalty”stems from a combination of direct discrimination by employers and indirect factors,such as reduced working hours or
248、 career breaks to manage childcare duties.Career interruptions are more frequent among women with low to medium skill levels,possibly reflecting the lower financial opportunity costs of stepping away from the workforce(OECD,202141).1 People in their 50s are more likely than those of other ages to pr
249、ovide unpaid care,although rates in 2021 were below that in 2011(which may be due to COVID-19).This care often involves supporting parents,partners,other family members,or friends due to long-term health conditions or illnesses.In the United Kingdom,women consistently bear a disproportionate burden
250、of caregiving responsibilities throughout their lives.During their younger years,women are significantly more likely to be the primary caregivers for children,with around 9%of women providing unpaid care at age 30-40,compared to 5.8%of men in this age group(Figure 1.19).This trend continues into lat
251、er life,where women are again more likely to assume caregiving roles for elderly parents or partners.At age 50-60,about 20%of women are providing unpaid care,compared to 13%of men.This persistent gender disparity in caregiving has far-reaching implications for womens careers and financial stability,
252、contributing to gender pay gaps and reduced pension accumulation.Informal caregiving responsibilities can create barriers that make changing jobs more challenging.05101520253035404550051015202530354045501820222426283032343638404244464850525456586062646668%MenWomen 31 PROMOTING BETTER CAREER MOBILITY
253、 FOR LONGER WORKING LIVES IN THE UNITED KINGDOM OECD 2024 Figure 1.19.Women are more likely to provide unpaid care than men Share of persons providing unpaid care by single year of age and sex,2011 and 2021 Note:England and Wales only.Source:Office of National Statistics(ONS).StatLink 2 https:/stat.
254、link/unwpqm 1.4.4.Employment protection legislation is weak in the United Kingdom The United Kingdom has relatively weak employment protection legislation compared to many other developed countries.This is evident in several key areas,such as the ease of hiring and firing.The United Kingdom has some
255、 of the most flexible hiring and firing regulations among OECD countries.Employers face fewer restrictions when it comes to dismissing workers,with shorter notice periods and lower severance pay requirements compared to many European counterparts.This flexibility is often cited as a factor contribut
256、ing to the United Kingdoms relatively low unemployment rates.The United Kingdom also has limited protection against unfair dismissal.While the United Kingdom does have laws against unfair dismissal,the qualifying period for such protection is relatively long.Employees must generally have worked for
257、their employer for at least two years before they can claim unfair dismissal.This leaves many workers,particularly those in temporary or short-term positions,with limited recourse against arbitrary termination.The coverage of collective bargaining has also declined over recent decades,with only 26.9
258、%of workers covered by collective agreements,compared to an EU average of 60.5%.This reduction in collective bargaining power has contributed to weaker employment protections for many workers,particularly in the private sector.These factors combined have led to the United Kingdom being ranked relati
259、vely low in terms of employment protection stringency by international organisations.For example,the OECDs Employment Protection Legislation index consistently places the United Kingdom among the countries with the least restrictive regulations(Figure 1.20).While this flexibility is often touted as
260、beneficial for economic dynamism and job creation,it also raises concerns about job security and worker rights in an increasingly precarious labour market.051015202530%B.2021051015202530%A.2011MenWomen32 PROMOTING BETTER CAREER MOBILITY FOR LONGER WORKING LIVES IN THE UNITED KINGDOM OECD 2024 Figure
261、 1.20.Employment protection legislation in the United Kingdom is weak relative to most other OECD countries Note:Data refer to year 2019.Source:OECD Indicators of Employment Protection.StatLink 2 https:/stat.link/dgf7r6 00.511.522.5300.511.522.53ScoreScoreA.Overall strictness of dismissing individua
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274、ld Penalties across Countries:Evidence and Explanations”,AEA Papers and Proceedings,Vol.109,pp.122-126,https:/doi.org/10.1257/pandp.20191078.39 Lain,D.(2016),Reconstructing Retirement:Work and Welfare in the UK and USA,Bristol University Press,Bristol.37 Lane,M.and A.Saint-Martin(2021),“The impact o
275、f Artificial Intelligence on the labour market:What do we know so far?”,OECD Social,Employment and Migration Working Papers,No.256,OECD Publishing,Paris,https:/doi.org/10.1787/7c895724-en.11 Lassbie,J.and G.Quintini(2022),“What skills and abilities can automation technologies replicate and what does
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279、 ethnic inequalities”,Oxford Open Economics,Vol.3/Supplement_1,pp.i365-i452,https:/doi.org/10.1093/ooec/odad026.7 OECD(2024),Promoting Better Career Choices for Longer Working Lives:Stepping Up Not Stepping Out,OECD Publishing,Paris,https:/doi.org/10.1787/1ef9a0d0-en.22 OECD(2023),Retaining Talent a
280、t All Ages,Ageing and Employment Policies,OECD Publishing,Paris,https:/doi.org/10.1787/00dbdd06-en.21 35 PROMOTING BETTER CAREER MOBILITY FOR LONGER WORKING LIVES IN THE UNITED KINGDOM OECD 2024 OECD(2022),Disability,Work and Inclusion:Mainstreaming in All Policies and Practices,OECD Publishing,Pari
281、s,https:/doi.org/10.1787/1eaa5e9c-en.23 OECD(2021),Health at a Glance 2021:OECD Indicators,OECD Publishing,Paris,https:/doi.org/10.1787/ae3016b9-en.24 OECD(2021),The Role of Firms in Wage Inequality:Policy Lessons from a Large Scale Cross-Country Study,OECD Publishing,Paris,https:/doi.org/10.1787/7d
282、9b2208-en.41 OECD(2020),Promoting an Age-Inclusive Workforce:Living,Learning and Earning Longer,OECD Publishing,Paris,https:/doi.org/10.1787/59752153-en.4 Overman,H.and X.Xu(2024),“Spatial disparities across labour markets”,Oxford Open Economics,Vol.3/Supplement_1,pp.i585-i610,https:/doi.org/10.1093
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284、3 Scott,A.(2021),“The longevity economy”,The Lancet Healthy Longevity,Vol.2/12,pp.e828-e835,https:/doi.org/10.1016/S2666-7568(21)00250-6.2 Topel,R.and M.Ward(1992),“Job mobility and the careers of young men”,Quarterly Journal of Economics,Vol.107/2,pp.439-479,https:/doi.org/10.2307/2118478.19 Vangen
285、,H.(2021),“The Impact of Informal Caregiving on Labour Supply Before and After a Parents Death”,Journal of Population Ageing,Vol.14/2,pp.201-228,https:/doi.org/10.1007/s12062-020-09279-2.26 Yashiro,N.et al.(2020),“Technology,Labour Market Institutions and Early Retirement:Evidence from Finland”,SSRN
286、 Electronic Journal,https:/doi.org/10.2139/ssrn.3764589.18 36 PROMOTING BETTER CAREER MOBILITY FOR LONGER WORKING LIVES IN THE UNITED KINGDOM OECD 2024 Annex 1.A.Local differences in inactivity across the United Kingdom Annex Figure 1.A.1.Differences in inactivity across regions/nations are large In
287、activity rates by age,gender and region/nation,2023 Note:No data available for age group 35-49 for Northern Ireland.Source:OECD calculations based on data from the Office for National Statistics,www.ons.gov.uk/.StatLink 2 https:/stat.link/udhok7 Notes 1 Recent findings from the United States highlig
288、ht that both career progression within firms and mobility between firms play crucial roles in shaping the gender pay gap,though these factors affect low-skilled and high-skilled workers differently(Barth,Kerr and Olivetti,202140).For college-educated individuals,the widening gender gap mainly result
289、s from disparities in earnings growth within firms,with just 27%of the gap attributable to differences between firms.Conversely,for workers without a college degree,the gender divergence is minimal.For both college-educated and non-college-educated groups,mobility between firms contributes to variat
290、ions in earnings growth,with significant differences observed between married and unmarried women.The age-earnings trajectory for unmarried women is comparable to that of men,while for married women,the progression across firms is notably flatter,suggesting that the challenges associated with job se
291、arching and transitioning to new roles may increase with more time spent on domestic responsibilities.0102030405060708090100LondonSouth EastSouth WestEast of EnglandYorkshire and The HumberScotlandNorth EastWest MidlandsNorth WestEast MidlandsWalesNorthern Ireland%A.35-490102030405060708090100London
292、South EastSouth WestEast of EnglandYorkshire and The HumberScotlandNorth EastWest MidlandsNorth WestEast MidlandsWalesNorthern Ireland%B.50-640102030405060708090100LondonSouth EastSouth WestEast of EnglandYorkshire and The HumberScotlandNorth EastWest MidlandsNorth WestEast MidlandsWalesNorthern Ire
293、land%C.65+WomenMen 37 PROMOTING BETTER CAREER MOBILITY FOR LONGER WORKING LIVES IN THE UNITED KINGDOM OECD 2024 Career adaptability and lifelong learning are crucial in supporting longer working lives and smooth job transitions for mid-to-late career workers.Rising life expectancy and more complex j
294、ob and career trajectories make the need for career guidance,continuous upskilling,and adaptable training systems greater than ever.While the United Kingdom does not significantly restrict career mobility,it lacks robust support mechanisms for mid-to-late career workers,particularly in navigating ca
295、reer changes and lifelong learning.There is a need for a better supported public career guidance system,improved employer engagement in career development,and tailored support for older,unemployed,or displaced workers.2 Supporting career progression in the longevity era 38 PROMOTING BETTER CAREER MO
296、BILITY FOR LONGER WORKING LIVES IN THE UNITED KINGDOM OECD 2024 Key messages and recommendations Career adaptability is crucial for supporting longer working lives and work transitions later in life.With increasing life expectancy and evolving career trajectories,career adaptability and job search s
297、kills are essential for helping individuals,especially mid-to-late career workers,to navigate changing job markets and prolong their working lives.The United Kingdoms policy environment does not significantly limit career mobility but lacks robust support mechanisms for workers seeking career change
298、 or advancement later in life.There is a need for an all-age career guidance system.A well-integrated,lifelong guidance system that supports adults at all career stages is lacking in most parts of the United Kingdom.Workers,particularly older adults,often face greater job search challenges and need
299、accessible,accurate information on career options and education pathways.The new government plans to launch a new national jobs and careers service accessible to those in and out of work.Employers are key actors in career development and need to step up.Employers have a central role in encouraging c
300、areer planning,especially through initiatives like mid-life career reviews.However,support is uneven,and small to medium enterprises(SMEs)face difficulties in providing these services,highlighting the need for incentives and support to enable widespread adoption.Support for late-career workers who a
301、re unemployed or out of the labour market is often not adequately targeted.The fragmented nature of employment support fails to address the specific challenges of older workers such as such as age discrimination,health concerns,and skill mismatches.A more co-ordinated approach,combining personalised
302、 support,accessible training,and active employer engagement,is necessary to help late-career workers re-enter the workforce effectively.Flexible,lifelong learning is crucial for career adaptability.The rapidly changing job market and technological advancements necessitate continuous upskilling and r
303、eskilling.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 those seeking career transitions.Based on these considerations,the United Kingdom should consider acting to:1
304、.Establish a coherent,all-age career guidance system.Develop an integrated,lifelong career guidance framework accessible to all adults,regardless of age or employment status,with high-quality,up-to-date information to support career planning,job search,and skill development.Strengthen co-ordination
305、among public,private,and third-sector providers,ensuring comprehensive support for career transitions at all stages of life.2.Improve integration of employment and career services.The new government has already committed to creating a new National Jobs and Careers service.This should integrate long-
306、term career guidance with employment support services,promoting sustainable employment rather than short-term job placement.Explore partnerships between DWP and other departments to create a unified approach to lifelong career guidance,spanning welfare support and skills development.3.Enhance suppor
307、t for mid-life career planning.Encourage employers to engage in regular career conversations with employees,providing structured opportunities for career reflection and planning.Provide incentives and resources to SMEs to enable their participation in career planning and guidance activities,addressi
308、ng any capacity limitations.4.Enhance employment support services for late-career workers.Create a more unified support system that aligns job training,retraining,and employment services with the specific needs of late-career workers,ensuring access to both general and specialised support 39 PROMOTI
309、NG BETTER CAREER MOBILITY FOR LONGER WORKING LIVES IN THE UNITED KINGDOM OECD 2024 mechanisms across sectors and regions.The focus of SWAPs could be extended to longer-term career opportunities,rather than quick job matches.5.Ensure access to flexible,modular lifelong learning pathways.It is importa
310、nt that workers of all ages have access to appropriate training opportunities to enable upskilling and reskilling.The apprenticeship levy needs to be reformed to ensure funding is available for all young workers who want to do an apprenticeship.A percentage of the levy could be made available to sup
311、port training delivered through regulated institutions like colleges,universities,or training providers.The proposed Lifelong Learning Entitlement(LLE)should be designed to maximise flexibility,support part-time learners,and ensure adequate funding for in-demand skills,particularly in emerging digit
312、al and technical fields.6.Strengthen employer-supported training and sector-based initiatives.Enhance employer-supported training by providing incentives for sector-based training schemes,especially in industries facing skill shortages.Reform the apprenticeship levy to allow funds to be used for a w
313、ider range of training programmes beyond apprenticeships,enabling employers to access flexible training options aligned with their specific needs.7.Promote recognition of prior learning and skill validation.Develop a standardised system for recognising and validating professional experience and prio
314、r learning across industries to facilitate smooth career transitions.Integrate into the National Qualification Framework to ensure transparency and recognition across sectors.Consider the use of digital badges and micro-credentials as part of this process to validate and showcase competencies.2.1.In
315、troduction This chapter examines the importance of career planning and the need for lifelong learning in supporting longer working lives and smooth job transitions for mid-to-late career workers.With rising life expectancy and evolving career trajectories,the need for career guidance,continuous upsk
316、illing,and adaptable training systems is greater than ever.While the United Kingdom does not significantly restrict career mobility,it lacks robust support mechanisms for older workers,particularly in navigating career changes and lifelong learning.There are significant gaps in the United Kingdom in
317、 career guidance and employment support,such as the need for a comprehensive,all-age career guidance system,improved employer engagement in career development,and tailored support for older,unemployed,or displaced workers.2.2.Career adaptability and job search skills are critical to help workers pla
318、n ahead As working lives lengthen and new skills are demanded by a rapidly evolving labour market,career guidance support is essential to navigate changes,facilitate labour market transitions,and enhance skills.However,for workers to make informed decisions about investing in their learning,educatio
319、n,and training,they need access to the information and support that foster effective career management skills.Continuing to work in the same profession or job can become unsustainable for some people due to health,caregiving responsibilities or a change in personal preferences,prompting a change lat
320、er in life.However,late career workers may not have good information on what opportunities align with their skillsets or flexibility needs.Further,evidence shows that job search difficulty increases with age,while confidence in finding a new job declines with age(Figure 2.1).40 PROMOTING BETTER CARE
321、ER MOBILITY FOR LONGER WORKING LIVES IN THE UNITED KINGDOM OECD 2024 Figure 2.1.Job search difficulty increases with age and confidence declines with age Note:Generation and OECD survey of employers and employed/unemployed individuals in Czechia,France,Germany,Romania,Spain,Sweden,the United Kingdom
322、 and the United States.n=5979.Panel A shows the percentage of midcareer job seekers who responded that the job search is“very difficult”or“somewhat difficult”.Panel B shows the percentage of midcareer job seekers who responded they“strongly agree”or“somewhat agree”with the statement“I am confident I
323、 will get a new job.”Source:OECD/Generation:You Employed,Inc.(20231),The Midcareer Opportunity:Meeting the Challenges of an Ageing Workforce,https:/doi.org/10.1787/ed91b0c7-en.StatLink 2 https:/stat.link/p0y82e 2.2.1.Adult career guidance in the United Kingdom The environment for supporting workers
324、to change job or career mid or later in life is under-institutionalised in the United Kingdom albeit high on the political agenda and all stakeholders recognise the greater need for early intervention and providing more support to lengthen working lives.While the policy environment does not generall
325、y constrain mobility,there is little active government support for people who want to change job or career later in life.There is a lack of a well-integrated and established career guidance system that provides support throughout an adults life in the United Kingdom(Holman,20222;Hooley,Percy and Nea
326、ry,20233;Barnes,20234).The system is generally seen as effective at the school and higher education level,following the Holman reforms,but is weakest for those in work and outside the labour market.Key challenges that have been identified in England include shortages of funding and frequent changes
327、in the names,locations and brands of services and changes to individual entitlement(Hooley,Percy and Neary,20233).The system lacks coherence,with fragmentation among multiple funders,providers and overlapping client groups,with limited and patchy access.In the United Kingdom careers services are dee
328、ply integrated into educational institutions,and although they do work with adults for example in university and further education colleges,and the NCS they primarily deal with young people and people leaving fulltime education for the first time.For employed adults,career guidance services are larg
329、ely available through the private sector,and for those in work,it is to some extent available through their employer.Several companies are filling a gap to support workers switch jobs or develop their career through a combination of career counselling and guidance services(Box 2.1).1 The private sec
330、tor is arguably a strength of the UK economy,and there may be lessons that could be transferred from the private sector to the public sector in this area.However,the largely unregulated private sector in career guidance is not well understood by the public.As a result,even those who can afford these
331、 services may struggle to access them.Holman(20222)recommended supporting 010203040506070809035-4445-5455-65%A.Jobsearch difficulty010203040506070809035-4445-5455-65%B.ConfidencePotential switchersSuccessful switchersUnemployed 41 PROMOTING BETTER CAREER MOBILITY FOR LONGER WORKING LIVES IN THE UNIT
332、ED KINGDOM OECD 2024 employed adults through a publicly funded,high-quality careers guidance system that is accessible to everyone,regardless of their career stage,based on comprehensive and dynamic information and data.There are likely to be wide gaps in access to services between different groups,
333、with ethnic minorities,older workers,employees in small firms having less access.Based on the OECD Survey of Career Guidance for Adults(SCGA)(which includes Chile,France,Germany,Italy,New Zealand and the United States,but not the United Kingdom)on average about 25%of people receive career guidance from a Public Employment Service(OECD,20215).The survey also shows that there are large gaps across a