A new report to be published by think tank IPPR suggests that being out of work for more than two years severely curtails the chances of someone getting a new job. IPPR analysis indicates that 100,000 older workers aged 50+ who lost their jobs at the start of the recession are now at risk of being forced to retire earlier - with a lower pension - than they planned.

Tony Dolphin, IPPR Chief Economist, said:

“Almost a quarter of those who have been unemployed for more than two years are over 50. The risk is that older people who have been out of work for this long stand little chance of ever working again. This means many will be forced into early retirement, which will mean a lower standard of living during their old age.

“Previously, this has mostly affected men employed in low value-added manufacturing industries that are in decline as a result of technological change and competition from emerging economies. However, the government’s cuts in public sector jobs will disproportionately affect women and they too may begin to retire early.”