UK Life Expectancy Improvements Impact On Recruitment

The fact that people are living for longer in the United Kingdom is something to be celebrated. As life expectancies rise, we are clearly making great advances with respect to healthcare and medical science. At the start of the 20th century, the average life expectancy rates were in the mid-40s while nowadays the average life expectancy rates are in the mid-70s. This is an average of 30 years being added, which means people get to have more time on life with people they love. That has to be seen as a positive thing but of course, it also represents challenges and the recruitment sector is one of the areas that needs to react to this change.

At the start of this millennium, the ratio of people of working age and the people of retirement age stood at 3.7 to 1 but this is expected to fall. Studies suggest that by the year 2040, the ratio will stand at 2.1 working aged people for every retired person. This will place a stress on natural resources but it also means companies and businesses will have to re-evaluate their options and recruitment policies. Given that there have been murmurings about a further raising of the retirement age in the United Kingdom, it is important that people and firms operating in the recruitment sector think about the future and the way the changing nature of the population may impact on their business.

At the same time, we appear to be moving towards an area where technology and computers will remove the need for human engagement or involvement with certain roles. This may further lessen the need for people to be employed and this may cause major issues in the employment sector and there is already a concern over the lack of skilled workers for key roles.

There is a shortage of skilled labourers in UK

One area that the UK is struggling with at the moment is with respect to skilled labourers. By 2018, it is estimated that a further 100,000 workers will be required by companies operating in the haulage, gas and oil sectors. If more of the population are going to be elderly and lacking in the skills or strength required for these roles, it will place certain parts of the economy under greater stress. When the oil and gas industries are affected, this has a larger impact on the economy than other sectors, so there could be a knock-on effect across the country. Similarly, if haulage firms are unable to find sufficient numbers of drivers, there could be a fall or disruption to moving goods and products around the UK, Europe and beyond.

These are all challenges that the recruitment sector has to at least acknowledge and look towards resolving in the immediate future. The fact that people are living longer is good news and should be celebrated, but it will create new challenges and problems. It may be that hiring workers close to or even at the current age of retirement may be a sensible solution for many firms.

October 2016 Author : 2XL Recruitment Solutions part of 2XL Media Solutions