Tag Archives: British Household Panel Survey

Unretirement: can it be a positive story for all?

“When I was sitting around at home I would just get grumpy. I’ve also lost five stone since working here. This is like a vitality camp for me.” Retired British Transport Police inspector Brendan McCambridge, 56, interviewed in The Telegraph, describes how his new role at Waitrose has improved his life. He is one of the one in four retired British people who return to paid work, a phenomenon called “unretirement”. New research, led by Dr Loretta G. Platts from Stockholm University’s Stress Research Institute, explores who ends up unretiring. In this blog post, she considers the implications for individuals, business and policy of retired older people returning to paid work.

Retirement can be an abrupt and one-way change marking the end of paid work and the start of a time of leisure. But people’s lives often don’t look like this. People may gradually retire over a period of time, or even unretire, returning to paid work after retiring. We found that around one in four retirees in the UK returns to paid work, mostly within five years of retiring.

Our information came from the longitudinal Understanding Society data and its predecessor the British Household Panel Survey. We followed more than 2000 50–69-year-olds through the 1990s and 2000s. Participants were defined as unretiring if they reported retiring and later returned to paid employment, or began full-time work following a period of semi-retirement.

While all sorts of people unretire, men are more likely to unretire than women, as are people in good health and those with post-16 qualifications. Unretirees are also more likely to have a partner in paid work. After ten years, a retiree’s chances of taking up paid work are low.

What motivates unretirement?

Unretirement was a positive experience for Brendan McCambridge. Having a job helps to stay mentally and physically active, provides a meaningful activity, and unretirees often appreciate the social side of paid work. Some may appreciate the extra money earned which supplements a pension and provides funds for little extras. For others, earning money is an important part of the decision to unretire.

Our findings suggest that financial factors play a role in the decision to return to paid work. Retirees paying off a mortgage are more likely to unretire than those who already own their home outright. Unretirees may wish to prepare financially for retirement or to supplement a pension. With a basic state pension of £122.30 per week for people who retired before 6th April 2016, some people may have found a new job because they could not afford to retire.

Former Pensions Minister Steve Webb, now director of policy at Royal London, contends that some retirees may have little other option than to get a job. In an interview for People Management, Webb noted that although many of those heading back to work after retirement do so because they “miss the stimulation and social contact”, there is a “real danger” that a whole generation of people will be unable to retire in the first place because they have not managed to save a big enough pension pot.

He says: “If employers do not address this issue they could find themselves with an unhappy older workforce that does not want to work but cannot afford to stop.”

Why retire and then unretire?

Some people may unretire as a result of finding out that they like being retired a lot less than they thought they would. Researchers call this a “retirement shock”, in which recent retirees, just like Brendan McCambridge, discover that they do not like their new lifestyle.

Others may have known all along that they wanted to remain in paid work, but were unable to. More than one million people over 50 are out of work for reasons beyond their control and would like to be in paid work if the appropriate opportunities were available. Some people may be forced out of work directly or indirectly as a result of age-based stereotypes, in particular through not being offered training programmes to learn new skills, or from their updated skills being undervalued.

In their second Missing Million report, Business in the Community has argued that far too many older people are being denied the chance to enjoy meaningful employment in later life and calls for stronger age discrimination legislation to tackle this.

Employers of older people also often deny them the flexibility they require to stay in paid work. Workers aged between 50 and 69 years are more likely than other age groups to want to work fewer hours than they currently do, even if this were for less pay. Around 8 per cent of workers in their 50s are working more than 45 hours per week while also being in ill health. Such older workers, locked into working long hours, may retire from jobs because they do not offer sufficient flexibility of working times.

Retirees may then take a more suitable job if it comes up, or negotiate more suitable working times later on if their former employer asks them to come back. Dr Jill Miller, diversity and inclusion adviser at the Chartered Institute for Professional Development believes that simple adjustments to working times or job roles could be the key to employers attracting and retaining a “significant talent pool” of older workers who can contribute to the success of the organisation.

Does everybody get to unretire if they want to?

While people in financial straits may be wanting to unretire, we found they did not necessarily manage to. People who were struggling to make ends meet were not more likely to unretire than people in a more comfortable financial situation.

Similarly, those who had lower earnings before retirement were not more likely to unretire. The reason is probably that it is harder for people in a precarious financial situation to find a suitable or good quality job.

These findings are worrying in terms of the broader picture of inequalities in later life. If those retirees who most need to supplement their incomes in later life are not able to find suitable paid work, unretirement may be part of processes that increase inequalities in income between older people.

The findings are also worrying in the context of skills shortages currently faced by British industry, which are predicted to be exacerbated over the coming years. By 2022, the skills gap is expected to reach 7.5 million vacancies. Government and business should not forget about the experience and skills of recently retired workers who are often ready and keen to be re-engaged in the workforce. These workers may need more support and legislation to protect and promote their rights to work more flexibly to take into account their preferences and also the fact that they may be caring for grandchildren and other family members.

Specifically, the government could improve flexible working legislation by providing employees with the right to request flexible working from the start of the job application process, rather than waiting 26 weeks from the beginning of employment. Since older employees are less likely to be offered training, and are less likely to take it up, employers could monitor access to training and development by age as well as proactively offering training to employees and being open to additional training requests.

Where older people manage to find new jobs, it is a result of their own efforts and networks, and not because they accessed effective support. Older people reported in focus groups that Job Centres in particular provided poor guidance and assistance. Government could consider how to develop age-appropriate support services and guidance in Job Centres. Both government and employers could offer mid-life career reviews.

In the long term, we need to work towards a society in which unretirement becomes a positive story for all. Business and wider society stand to benefit from the ambition, experience and skills older people bring to the labour market. For financial and other reasons, many older people want to be in paid work. Currently, they are all too often left out.

Returns to work after retirement: a prospective study of unretirement in the United Kingdom is research by Loretta Platts, Laurie Corna, Diana Worts and Peggy McDonough and is published in Ageing and Society.

Photo credit: Scott Lewis

Out of work again? The psychological impacts of repeated unemployment

Being unemployed is bad for our mental well-being, but if we lose our job more than once does the psychological blow lessen in some way? Researchers Cara Booker from the University of Essex and Amanda Sacker at the International Centre for Lifecourse Studies at UCL used the long-running British Household Panel Survey to examine the psychological well-being of people who have repeatedly lost their jobs. Their findings show that our employment history makes a difference and could have implications for welfare to work initiatives from Governments looking to get people back to work.

Continuous employment may be what is best for us, but of course life is not always that straightforward and, at any given time, a significant proportion of the population will be out of work. This could be because we choose to take time out to undertake training or to have a family. We may fall ill or be made redundant.

The world of work is also becoming more flexible. Fewer people are staying with the same firm for long periods of time and more people are moving from contract to contract or job to job, sometimes with spells of unemployment in between.

At the same time, the Government wants to get more people off benefits and into work and is looking to make its Work Programme more effective.

Using 17 years of data collected from the participants in the British Household Panel Survey (1991-2008), we looked at any individual who had reported at least one spell of unemployment. Of these 1,642 participants, 82 per cent were unemployed once, 15 per cent twice and 3 per cent three or more times.

Mental health score

Participants were asked a range of questions about their mental health and answers to these were used to allot a score with 0-11 indicating good psychological health and 12 or more indicating stress or anxiety that could lead to ill health. The time periods before and after a spell of unemployment were also taken into account because job loss isn’t generally something that happens suddenly and there can be weeks or months building up to it.

Looking at the group as a whole, we found their psychological well-being was generally poorer during all spells of unemployment compared with when they were not unemployed, but there was no evidence of a lowering or increasing of the effect from one spell of unemployment to the next.

When we dug deeper into participants’ prior work history, however, we saw some differences between those people who had previously been ‘economically inactive’ (voluntarily not working e.g. to look after family or study) and those who had been working.

Those who prior to being employed had been ‘voluntarily’ not working suffered poorer psychological well-being after they went on to lose their job but became notably worse in the third spell of unemployment.

The previously employed group’s psychological well-being also took a knock after losing a job once and then again, but, by the third time there was no change, a possible indication that the individual is somehow adapting or getting used to dealing with the ‘shock’ of becoming unemployed.

When we compared levels of psychological well-being between these two groups, they were notably lower among the previously employed at unemployment spells one and two, but this was reversed at spell three.

Employment history matters

So only when we took into consideration being economically inactive as opposed to employed, did a slightly clearer picture emerge around this question of whether people adapt to the ‘shock’ of unemployment, with those previously employed seeming to adapt and those previously economically inactive becoming increasingly sensitive to it. These findings were given further weight when we looked at retrospective employment histories before the BHPS began.

One explanation for this is that those who come from an employed background tend to find work again after each unemployment spell they experience, so they become less anxious about finding another job. The economically inactive, meanwhile, seem to find it harder to enter and re-enter the job market which could account for increased anxiety with more attempts to sign up as ‘unemployed and seeking work’.

Household income also played a role with those who were economically inactive on higher than average incomes experiencing worse psychological well-being than their less off counterparts when making an unsuccessful attempt to enter employment.

In its recent Welfare-to-Work report, the Work and Pensions Committee pointed out that key to the programme’s success was providing unemployed people with “the right help at the right time” and a better understanding of the barriers and characteristics that prevent a swift return to work. A better understanding of the impacts of repeated spells of unemployment on people’s well-being would seem to resonate here.

It is also clear that good quality, secure employment opportunities with long term prospects are key to people’s health and happiness.

Psychological well-being and reactions to multiple unemployment events: adaptation or sensitisation? is research by Cara Booker and Amanda Sacker and is publishes in the Journal of Epidemiology and Community Health

Photo credit: Kathryn Decker

 

Working longer: is it good for your health?

Across Europe we are all living and working longer. Many of us in the UK are working past state pension retirement age. But what sorts of jobs do older workers opt for and why and what does all this mean for our health, especially in the context of changes to the age at which we can collect our state pension?  In this policy presentation from the ESRC International Centre for Lifecourse Studies at UCL, Professor David Blane looks at what these changes mean for our quality of life as we get older and the implications for those working in occupational health.

A full transcription of David Blane’s talk is also available on the ICLS website.

Photo credit: Scott Lewis

Can unemployment kill?

At the height of the recent recession around 2.7 million people were unemployed, and youth unemployment accounted for nearly 40 per cent of that total. Given growing evidence that unemployment is linked to long term illness and increased mortality, we can expect health implications for those affected. In a week when unemployment rose for the first time in over a year, Amanda Hughes presents new evidence from the ESRC International Centre for Lifecourse Studies on the links between unemployment and killer diseases such as heart disease.

In 1984 a study was published which had linked census data to mortality records and found that men unemployed in the week of the 1971 census were 36 per cent more likely to have since died than men of the same age who had been in work. Accounting for differences in social background only explained part of the excess, raising the question: can unemployment kill, and if so how?

That unemployment might damage health was not a new idea. Marie Jahoda’s research on unemployment in the 1930s had shown that the non-financial benefits of work, such as defining aspects of status and identity and providing regular social contact, are for many people crucial to mental wellbeing. And since job loss usually brings a sharp drop in income, it is intuitive that unemployment could affect physical health by reducing quality of diet or opportunities for exercise.

But there tends to be more scepticism as to whether serious physical illness or mortality could be causally influenced by the undoubtedly stressful experience of unemployment. Might those unemployed men have developed serious illness when employed, lost their jobs as a result, and then died from their illness? Or might their increased mortality simply be caused by unemployed people smoking and drinking more? In neither case could it be claimed that unemployment itself has caused any deaths.

New approach

Since the 1980s, the tools available to scientists researching the health impacts of social conditions have moved on considerably. One new approach involves molecules called ‘inflammatory markers’ which circulate in the bloodstream and appear to be influenced by stressful experiences.

Elevated concentrations have been found in the recently bereaved and caregivers; inflammatory markers are also typically higher for people of disadvantaged socioeconomic position as measured by income or occupational social class. Crucially, raised concentrations of these molecules are linked to atherosclerosis and predict heart disease, presenting a possible causal pathway between a stressful social environment and increased mortality.

It was for this reason that we wanted to see if two inflammatory markers – C-reactive protein and fibrinogen – were elevated in jobseekers compared to employed counterparts.

We used the Health Survey for England and Scottish Health Survey, annual government surveys used to track changes in the health of both countries’ populations. To isolate elevations in these molecules due to unemployment-related stress, we considered a number of additional factors beyond participants’ age and gender.

To rule out elevations due to serious illness predating job loss, we considered whether participants had a long-term illness of any type. To rule out elevations caused by disadvantaged socioeconomic position more generally, we took into account housing tenure and occupational social class from current or most recent job.

Finally, to test whether elevations might be explained by worse health-related behaviours of jobseekers, we took into account participants’ smoking, alcohol consumption and body mass index.

Stress markers

In our sample of over 23,000 men and women of working age, unemployed people had elevated circulating levels of both molecules even after consideration of these factors. These differences were moreover clinically relevant, since unemployed participants were 40 per cent more likely to have C-reactive protein over 3mg/L, the level at which cardiovascular risk becomes elevated.

Effects were not uniform across the population. Firstly, older jobseekers (48-64) were more affected than younger jobseekers. This might indicate that unemployment is more stressful for jobseekers facing age discrimination, or equipped with outdated skills.

Since older jobseekers will have accumulated more unemployment over their lifetimes than younger counterparts, it could alternatively indicate that long-term or repeated unemployment is especially damaging to this aspect of health.

Secondly, we found substantial differences in results by country, with much greater elevations in both molecules for jobseekers in Scotland than in England. Data from the Labour Force Survey and the British Household Panel Study show that during the years of data collection (1998-2010) unemployment was higher in Scotland than England, and unemployment spells on average longer, which suggests two possible explanations.

Firstly, the jobseekers in Scotland may have been unemployed for longer, or had more recent unemployment spells, than English counterparts. Secondly, unemployment could be more stressful in times and places where the background rate is higher, since jobseekers will rationally perceive their prospects for re-employment as worse.

Since these surveys only collect information from people at one point in time, it was not possible in this analysis to investigate effects in the context of people’s employment histories. But unpicking these explanations will be crucial if we are to better understand the conditions under which unemployment is most likely to damage health, and which groups are most at risk.

Crucially, given last week’s news of a 21,000 rise in unemployment for the first time in a year  to 1.7 million people, policy makers interested in the long term health of the population should not divert their gaze from its wider consequences.

Photo credit: Kate Hiscock

Further information

Amanda Hughes is a Senior Research Officer at the Institute for Social and Economic Research at the University of Essex.

Elevated inflammatory biomarkers during unemployment: modification by age and country in the UK is research by Amanda Hughes, Anne McMunn, Mel Bartley and Meena Kumari and is published in the Journal of Epidemiology and Community Health.

References

Unemployment and mortality in the OPCS Longitudinal study is research by K.A Moser, A.J Fox, and D.R. Jones, and is published in the Lancet.

Unemployment durations: evidence from the British Household Panel Survey is research by K. Long and is published in Economic & Labour Market Review.