The UK’s economy is facing a midlife crisis

Since 2020, the UK has experienced a marked decline in workforce participation – with the number of people aged 16 and over estimated to be economically inactive having risen by 1.4 million since the beginning of the pandemic.

This is particularly the case among young people and those aged 50 and over, which means that the UK’s economy is effectively facing something of a ‘mid-life crisis’, says the Centre for Social Justice (CSJ).

The group’s data shows that the number of out-of-work claimants on Universal Credit (UC) aged 50–65 hit 1.5 million in May 2025, with those assigned no requirements to work having now exceeded one million for the first time.

“With fewer people in employment, tax revenues shrink, welfare spending rises, and economic growth is held back. For a government that has made growth its central mission – and is hoping to reduce the welfare bill – there is an urgent need to get more people into work,” it said.

“The government have commissioned an independent review, led by Sir Charlie Mayfield, into the role of UK employers and the government in tackling health-related inactivity and creating and maintaining healthy and inclusive workplaces.”

This is a pivotal moment to bring a renewed focus on individuals in their 50s and 60s who face unique challenges to entering the labour market, and are too often overlooked by existing policies, it said.

“A smarter, more tailored approach could boost employment, reduce benefit dependency, and improve the lives of hundreds of thousands of people.”

Targeted employment needed

The CSJ further called for a new national 50+ employment strategy, which would include:

Age-specific employment targets for workers over 50.
Nationwide rollout of WorkWell to establish a new National Work and Health Service.
Enhanced Access to Work provision to give older workers with health conditions help faster.
Strengthened occupational health services to prevent older workers from becoming inactive.
A reformed fit note system to ensure those who may be fit for work are supported to stay in work.
Expanded Sector-based Work Academy Programmes (SWAPs).
Extended eligibility for Connect to Work to reach more inactive older workers.
Age-specialist careers guidance is embedded within the new National Jobs and Careers Service (NJCS).

“Adopting this plan would help to increase the workforce participation of older individuals, increase economic growth and reduce welfare dependency. By addressing the specific needs of people above the age of 50 through better targeting support, the UK can harness their invaluable experience and skills,” the CSJ said.