The economic downturn has been effecting countries all over the world, and this does include Britain. One of the problems seems to be the fact that tens of thousands of people may now be forced to retire early. This would mean that they would be forced to deal with reduced pensions. Experts are saying that this is yet another backlash of the economic slowdown.
According to the Institute of Public Policy Research, some 100,000 people over the age of 50 have lost their jobs since the start of the economic problems in Britain. Now, many of these people have been forced into early retirement. In the end, this will leave thousands of people living in retirement with a lower pension than what they had hoped for.
The chief economist over at the Institute of Public Policy Research, Tony Dolphin, said that almost a quarter of those who have been jobless for more than two years are over the age of 50. The truth of the matter is, people in this age range run a high risk never being able to work again. In turn, many people are going to be forced into early retirement, and thus, have a much lower standard of living. Tony finished up by saying that the long-term unemployed lose skills as well as their confidence. The loss of confidence almost completely shuts someone out of the job market.
Of course, the bad news is not just limited to the older crowd. In fact, the study goes on to show that the number of 18 to 24-year-old workers that have been jobless for more than two years has grown from 36,000 to 95,000. This means that both the younger and older crowds are having a difficult time landing a job.
The Employment Minister, Chris Grayling, said that the government is working to tackle the unemployment issue through its Work Program. Not only that, but he also insisted ministers have a plan which will help encourage businesses to expand. Once a company expands, they will need more workers.
The real question here is: How long can people in the UK hold out with so few jobs? Currently, it looks as if the economy is about to dip back down into a second recession. This is not something that is very uncommon. However, the last recession was so hard that many families cannot afford to go through another one just yet. This goes double for businesses. Companies in the UK are having a hard time just keeping their doors open. Hiring more people is the last thing that most companies are looking to do right now. On top of that, as more shops continue to close, more people will just continue to become unemployed in the coming months.