LONDON: The UK economy could be boosted by £100 billion a year if the country had a similar employment rate to Sweden for 55-69 year olds, according to PwC.
PwC’s new Golden Age Index is a weighted average of indicators — including employment, earnings and training – that reflect the labour market impact of workers aged over 55.
The UK fell three places in the index rankings from 16th in 2003 to 19th in 2007, retaining this position in 2013. The UK has improved its absolute performance over time but still sits near the middle of the pack as the OECD average has also risen. Compared to other EU countries however, the UK scores relatively well (7th out of 21 in 2013).
John Hawksworth, PwC’s chief economist, said: “Our Golden Age index identifies which countries are leading the way in harnessing the potential of their older workers, including those in the Nordic region, New Zealand and Israel. The UK is only a middling performer, however, while most Eurozone economies except Finland and Germany are lagging behind.
“We estimate that by adopting the policies and business practices in the highest performing countries like Sweden, the UK could boost its GDP by around 5% in the long run, equivalent to around £100 billion at today’s values. This would also boost annual tax revenues and reduce benefit spending significantly, helping to meet the long term health, social care and state pension costs of an ageing population.”
