OLDER workers face a higher risk of unemployment as the furlough scheme is phased out from today, a new study suggests.

The Resolution Foundation said more than one in four workers aged 55 to 64 who were furloughed during the recent lockdown remained so in May despite the reopening of the economy.

There has been a rapid return to work in recent months, and a welcome boost to living standards, said the think tank.

The rapid fall in furlough rates has been driven by the reopening of sectors such as hospitality and leisure, which disproportionately employ younger workers, according to the report.

Younger people have returned from furlough more quickly, resulting in older workers bearing the highest risk of being out of work longer, said the foundation.

Its research indicated that more than 600,000 workers aged 45 to 64 have been unemployed or on full furlough for at least six months.

The Covid-19 crisis is set to leave an unequal legacy on family finances, causing extra spending pressures for some, while others have saved by not spending on hospitality, leisure and foreign travel, said the report.

Karl Handscomb, of the Resolution Foundation, said: “Reopening the economy has led to a surge in people returning back to work from furlough, particularly young people in sectors like hospitality and leisure.

“But not everyone is back working. Over one in four older workers who were furloughed during the recent lockdown have remained parked on furlough during the reopening and now face a higher risk of unemployment as the scheme starts to be unwound.

“It’s crucial that the government does all it can to prevent rising unemployment among workers of all ages this autumn when the furlough scheme ends.”