Regional and local labour market prospects: the importance of ageing in workforce development

Abstract

AbstractOverall, the labour force in the UK is ageing, although at different rates in different areas. This poses challenges for workforce development, and has implications not only for older workers, but for everyone, everywhere. However, demography is only one element in labour supply. It needs to be considered alongside trends in participation rates and in a broader policy and cultural context, and alongside likely changes in labour demand, in order to gain a picture of regional and local labour market prospects. The thrust of government policy is to raise employment rates amongst older people (aged 50–69) and to promote ‘active ageing’. The decline in employment rates amongst older men evident in the 1980s has been reversed, but participation rates remain low by earlier standards. Shifts in the industrial and occupational structure of employment mean that there is likely to be a growing demand for customer care and service skills, which older people are well‐placed to provide. Yet estimates of ‘replacement demand’ show that some of the most pressing workforce development issues are experienced in declining sectors and occupations, with an older than average age profile. Examples include agriculture and social care in Cornwall, where there is a lack of new recruits to replace those retiring. It is concluded that improved local intelligence on labour market flows and prospects is needed to inform skills and learning priorities. Copyright © 2006 John Wiley & Sons, Ltd.