Older workers forced to battle with new starters for junior roles as supply of good jobs dries up, Bank of England reveals

By JOHN-PAUL FORD ROJAS, DEPUTY BUSINESS EDITOR Older workers are vying with new starters for junior roles as the supply of good jobs dries up, a Bank of England survey revealed yesterday. Some fear that 'changes in the economy are reducing both the quantity and quality of jobs', according to the latest findings by the Bank's network of agents. They found job seekers saw 'fewer roles being advertised, organisations replacing fewer staff than are leaving, and some jobs being moved elsewhere'. 'Where roles are available, they are often lower paid or less secure, with propositions in some sectors that do not match the level of responsibility the role requires' they added. That has led to some moving into self-employment or others taking additional hours in zero-hours roles 'as a form of financial security'. And there was evidence 'that more experienced or senior workers are now applying for junior roles, increasing competition for younger individuals'. Separate data from the Bank out yesterday suggested employers were preparing to reduce pay settlements sharply over the coming year - with average rises expected to come down from 4 per cent to 3.4 per cent. It is the latest evidence of the dismal prospects facing many job seekers amid stagnating living standards and forecasts that unemployment will rise above 5 per cent. Older workers are vying with new starters for junior roles as the supply of good jobs dries up, a Bank of England survey revealed yesterday (stock photo) And it demonstrates the desperation facing some experienced workers as well as the increasingly challenging prospects for the young – at a time when the number of 16-24 year olds classed as not in employment, education or training (NEETs) stands at more than a million. Businesses have blamed higher taxes and steep increases in the minimum wage under former Chancellor Rachel Reeves for making it harder to hire workers. They may be hoping for some relief under new Chancellor John Healey, who this week acknowledged that firms are feeling 'really squeezed' by cost pressures. For now, the difficult conditions mean prospects seem grim for job seekers. The Bank's agents found the availability of junior roles is already being squeezed by the rise of artificial intelligence (AI). Their findings point to evidence of 'reduced graduate recruitment and lower demand for administrative and junior staff' as a result of AI. Elsewhere, the new Prime Minister received some more encouraging updates on the economy. Official figures showed retail sales delivered a better than expected performance last month – rising by 1 per cent thanks to the heatwave spurring demand for air conditioning and the World Cup, which saw sports kits flying off the shelves. And a monthly purchasing managers' index (PMI) survey showed the wider private sector bouncing back this month – thanks to similar factors. Despite that, the PMI poll showed workforce numbers continuing to fall as employers cut costs – suggesting a recovery in the economy may not necessarily deliver an immediate jobs boost. Meanwhile, experts fear the recent resurgence of conflict in the Middle East, which has pushed the price of oil back towards $100 a barrel, will reawaken inflation fears and dampen growth hopes. 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