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Economic activity status of older people

Statistics showing the participation of people aged 50 and above in the labour market. Additional detail from the 2021 census.

Labour Market Census 2021
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Older people in the North East

Key data:

Consistent statistics about the economic activity status of people aged 50 and over in local areas are available from 2004-05 onwards. 

In the North East LEP area, during the 18 years to 2022-23:

  • The number of people aged 50 to 64 increased by 60,600
  • the number of employed people aged 50 to 64 increased by 80,500
  • the number of people aged 65 and over increased by 88,300
  • the number of employed people aged 65 and over increased by 20,500
  • between 2019-20 and 2020-21, there had been sharp decreases in employment for both age groups and, despite subsequent increases, the 2022-23 totals were still below pre-COVID levels.

In North East LEP area in 2022-23:

  • Over a third (33.4%) of the working age (16 to 64) population was aged 50 to 64, up from 28.8% in 2004-05
  • almost a half (49.7%) of adults were aged 50 and over, compared to 43.1% in 2004-05
  • among the eight core city areas, the North East had the second highest percentage of working age people aged 50 to 64 and the highest percentage of adults aged 50 and over
  • among North East local authority areas, Northumberland had the highest percentage in both cases

Employment rates

Key data:

In the North East LEP area, in 2022-23:

  • The employment rate for people aged 50 to 64 was 65.8%, the lowest among the eight core city areas and 5.5 pp below the England excluding London rate
  • the 50 to 64 rate was 16.2 pp lower than the 35 to 49 rate, a larger gap than that of England excluding London (14.8 pp)
  • the 65 and over employment rate was 8.1%, the fourth lowest among the core city areas and 3.0 pp lower than for England escluding London
  • at local authority level the 50 to 64 employment rate was highest in County Durham and Sunderland (both about 69%). The 65 plus rate was highest in Northumberland (12.6%)

Between 2004-05 and 2022-03:

  • The North East 50 to 64 employment rate increased from 54.2% to 65.8%
  • this percentage point (pp) increase (11.7 pp when rounded) was much larger than that of England excluding London (6.2 pp)
  • in the first 15 years of this period, the North East rate increased by 14.3 pp
  • a sharp decrease in the 50 to 64 rate in the year to 2020-21 and relatively moderate increase in subsequent years means that the latest rate is below the immediate pre-COVID value
  • the North East female and male 50 to 64 rates increased by, respectively 14.6 pp and 8.8 pp. Both were larger increases than for England excluding London
  • in the latest  two years of this period, the female 50 to 64 rate decreased by 1.2 pp but the male equivalent increased by 4.3 pp
  • the latest North East female and male 50 to 64 rates were the second lowest among the eight core city areas
  • at North East local authority area level, the female rate was highest in Sunderland and the male rate was highest in County Durham

Employment characteristics

Key data:

More detailed sub-national information about the economic activity status of older workers is only available for the nine English statistical regions. The North East region includes the North East and Tees Valley LEP areas.

In 2022-23 in the North East region:

  • The employment rate in each five-year age group between 50 and 79 was lower than in England excluding London
  • the rate for the 50 to 54 age group was very similar to that of England excluding London. The gap between the rates was highest in the 55 to 59 age group
  • employment rates in these 50 plus age groups were higher for males than females except for among those aged 55 to 59
  • the latest 50 to 54, 55 to 59, 60 to 64 and 65 to 69 rates were, respectively, 12, 8, 22 and 13 percentage points higher than in 2004-05
  • the 55 to 59 and 70 plus employment rates had decreased in the latest year, with both still lower than pre-COVID. Other rates had increased and were higher or similar to those in 2019-20
  • only 44% of workers aged 65 to 69 were in full-time employment compared to 83% of workers aged 50 to 54
  • about 23% of workers aged 65 to 69 were self-employed, almost double the percentage for those aged 50 to 54
  • females in all older age groups were much more likely to be working part-time than males, while self-employment was more predominant among males
  • among the nine English regions, the North East had the second highest percentage of workers aged 50 to 64 who were in full-time employment and the second lowest percentage who were self-employed.
     

Non-workers

Key data:

Detailed sub-national information about reasons why older people are not working is also only available for the nine English statistical regions. 

In 2022-23 in the North East region (including Tees Valley) among people aged 50 to 64:

  • The percentage who were not in work was the highest among the nine English regions
  • the percentages who were economically inactive due to ill health and due to early retirement were both the highest among the nine
  • the economic inactivity rate was 10.8 percentage points lower than in 2004-05. During that period the female state pension age increased
  • however, the rate was 3.2 percentage points higher than pre-COVID (2019-20), despite a decrease in the latest year
  • the percentage who were economically inactive due to ill health was the same as pre-COVID, with the overall increase driven by rises in inactivity due to looking after family or home, retirement or other reasons
  • ill health was less likely to be a reason for inactivity than among 25 to 49 year olds, although some older people who cited retirement as a reason may have also had health problems
  • higher percentages of inactive males in this age group cited ill health or retirement as a reason than females, with the latter more likely to cite looking after family or home.

Additional detail from the census 

The census provides information about economic activity status for single years of age. In the North East LEP area in 2021:

  • The ten single years of age with the highest numbers of workers were from 48 to 57
  • this reflects a population structure where totals were highest among people in their fifties due to birth rate changes
  • there were about 26,000 more workers aged 48 to 57 than aged 38 to 47 despite a lower employment rate among older people.
Economic activity status by single year of age (2021 census)