The UK faces a critical turning point in the way it supports older workers, as a major new CIPD report warns that underinvestment in training and a lack of lifelong learning opportunities are leaving millions at risk of being left behind by sweeping changes in technology, the green economy, and workforce demographics.
According to the Chartered Institute of Personnel and Development (CIPD), a combination of rapid advances in AI, the shift to a net zero economy, and a dramatically ageing population are fundamentally reshaping the UK labour market. The professional body is now calling for a new era of reskilling — to help older workers remain in employment, build long-term financial security, and adapt to jobs that are evolving at unprecedented speed.
The CIPD’s latest research, Lifelong learning in the reskilling era: From luxury to necessity, published today, finds that the workforce is ageing rapidly, yet older workers remain significantly less likely than younger colleagues to access training, switch roles, or develop new skills. In England alone, employment among 50–64-year-olds has risen by 40% over the past 20 years — nearly three times the overall employment growth rate — while the number of 16–24-year-olds in work has fallen by 13% over the same period.
Despite making up an ever-larger share of the workforce, older employees are much less likely to participate in lifelong learning. Just 12% of those aged 55–64 took part in job-related training last year, compared with 20% of 16–24-year-olds. The pattern is even more pronounced for off-the-job training, which only 5% of those aged 55–64 received. This gap matters, the CIPD argues, as the jobs most vulnerable to automation, AI, and the green transition are often filled by workers with the least access to upskilling.
Adding to the challenge, employer investment in training has sharply declined. According to the report, average employer spend per trainee has fallen by 27% over the past decade — from £4,095 in 2011 to just £2,971 in 2022. Public funding for adult learning has also dropped by nearly a third since its peak in 2003/04. This combination of demographic change and falling investment, the CIPD warns, risks trapping older workers in unsuitable roles or pushing them out of the labour market altogether if their current jobs are displaced or no longer fit their needs.
The obstacles to progress are not only financial, but also cultural. Speaking to the Business Quarter team, Lizzie Crowley, Skills Advisor for the CIPD, said employers may be hesitant to invest in training older workers, “often due to perceived lower returns, shorter remaining career spans, and assumptions about their ability to adapt to new technologies or practices.” Crowley added that, “as older workers make up an increasingly large and vital segment of the workforce, this mindset must shift, particularly in the light of rapid technological change and an ageing population.”
Crowley continued: “Employers need to take proactive steps to engage workers in training and support reskilling and retention in response to demographic change. Flexible working arrangements can ease transitions into new roles while helping older workers manage health, caring, or other life responsibilities. Mid-career reviews and structured career conversations are valuable tools for identifying aspirations and helping individuals map out reskilling or upskilling pathways. At the same time, addressing age discrimination in recruitment, retention, and progression is essential to ensure older workers have fair access to opportunities.”
The risks extend beyond the workplace. Nearly half of all UK workers are not currently contributing to a pension, according to new government data cited in the report. As working lives lengthen, gaps in financial resilience for older workers may widen, with underinvestment in upskilling and career support compounding the challenge.
While the CIPD and others see hope in new learning formats, such as micro-credentials and modular training, they also caution that these are not a panacea. Flexible learning paths can help older workers fit study around jobs and caring commitments — but only if quality standards and employer recognition are built in from the start. Crowley said, “While micro-credentials offer flexibility and focused skill development, they also carry several risks that must be carefully managed. To be effective, they need to be well-designed, clearly defined, and underpinned by strong quality assurance.
“Crucially, micro-credentials should be integrated into recognised qualifications frameworks, aligned with clear occupational pathways and standards, and developed in collaboration with employers to ensure they are relevant, trusted, and valued in the labour market.”
The report also spotlights international examples, such as Singapore’s “SkillsFuture” initiative and training vouchers in the Netherlands, that show how sustained, joined-up investment in adult learning can deliver higher participation and better outcomes for older workers.
As the UK’s labour market shifts, the CIPD argues that boosting investment in lifelong learning and skills is not just an economic necessity but a social imperative — one that demands urgent action from both government and business leaders.
