Retirement: Many older Britons have retired early since the pandemic

After the corona lockdowns and phases of short-time work, a number of older Brits turned their backs on the world of work. “Many older workers have not returned to the labor market in the way that was hoped,” says economist Christian Dustmann from University College London in an interview with the German Press Agency.

Many would have set new priorities during the pandemic and reassessed their situation. This is also shown by the fact that significantly more work is now being done from home and the return to the office after the lockdown phases has not been as widespread as expected.

Especially a cohort “economically inactive”

In March of this year, the statistical authority had already announced that at the end of 2021, a good half a million fewer people (522,000) were working in the labor market than before the pandemic. Of those no longer working, the over-50s group accounted for more than 94 percent. The effect was particularly strong in men between the ages of 50 and 70 with a higher level of education. In the spring quarter, the number of 50- to 64-year-olds who were “economically inactive,” as the National Statistics Office puts it, increased again.

In Great Britain the phenomenon is discussed as “Great Resignation”. Some economists fear that it could exacerbate the lack of staff in many sectors, which has already been exacerbated by Brexit. The boss of the department store chain John Lewis, Sharon White, also fears that the departure of this group of workers could further increase inflation.

In some professions – such as schools or in the health service – people who are already retired were sometimes asked to consider returning.