Page 14 - Regional Employment & Skills Plan 2019

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2.1 The Labour Market
2.1.1 Demographics
Mid-year population estimates for 2017 indicate that approximately 205,591 people are living in Mid Wales. The same estimates give indication that there are approximately 698,733 individuals living in the four counties of South West Wales.
The South West and Mid Wales region has 150,104 millennials (ages 20-34) which is close to the national average of an area of the region’s size. However, retirement risk is high with 367,511 individuals due to retire soon (aged 55 or over), the national average for an area of this size is 310,348 which is significantly lower than the region’s average.2 It is therefore fair to say that both economic areas have an ageing population with the proportion of those aged over 65 accounting for 26% of the total population in Mid Wales and 22% in South West Wales. These figures exceed Wales and UK averages at 21% and 18% respectively.
An ageing population is becoming a key consideration for policy makers with impacts likely to affect many policy areas, these include;
• Work – As the state pension ages rise it results in the average age of the workforce increasing as more people must remain in work longer.
‘The proportion of the working age population aged between 50 and the state pension age (SPA) will increase from 26% in 2012 to 35% in 2050 – an increase of approximately 8 million people.’3
This would suggest that the older workforce is becoming increasingly important and the economic growth and success of the UK and its devolved nations will be increasingly linked to the success of its ageing workforce.
• Learning – We are already aware that the world of work is changing which calls for individuals to be more multi-skilled. This is crucial to supporting an older workforce where people will remain in work longer suggesting that they need to be more adaptable to the changing needs of the economy and society as a whole. Life-long learning has a significant part to play in ensuring that individuals remain employable and skilled throughout their lives.
• Health and Care – An ageing population will inevitably increase demand for health and social care services. This puts increased pressure on the sector’s ability to recruit and retain appropriately skilled individuals to provide the increased level of care that will be required across the country.
Price Waterhouse Cooper’s recently published Golden Age Index report (2017) suggests that to offset these higher costs older workers should be encouraged to remain in the workforce for longer. Their research suggests that this would increase consumer spending, raise GDP and tax revenues in addition to improving the health and wellbeing of older people by keeping them mentally and physically active.
2 RLSP analysis of EMSI data
3 https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/535187/
gs-16-10-future-of-an-ageing-population.pdf
Regional Employment & Skills Plan South West & Mid Wales
Policy Context