Demographic change will have a profound effect on the UK labour market over the next two decades and beyond. Over 30% of people in employment in the UK are over the age of 50, and there are unlikely to be enough younger people entering the labour market to replace this group when they leave the workforce, taking their skills and experience with them. Employers need to recognise the potential issues they face, such as skills shortages, productivity challenges, labour shortfalls and an inability to meet customer service and production targets.

The report, Avoiding the demographic crunch: labour supply and the ageing workforce, is a collaboration between the International Longevity Centre (ILC-UK) and the CIPD. It explores the challenges for different industries of an ageing workforce and how to mitigate the risks. Data from the Labour Force Survey (LFS) are analysed to explore the age profile of different industries and the extent to which industries are currently experiencing a drop-off in employment after certain ages. The report includes recommendations for employers to adapt to demographic change and ensure a stable workforce for the future.

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