West Dorset has one of the highest numbers of people aged over 50 in its workforce across the country, a Thinktank report claims.

Figures from the “Does ageing matter when it comes to workforce productivity?” report produced by the International Longevity Centre (ILC) shows that nearly 35 per cent of the people working in West Dorset which includes Weymouth have passed their half-century making it the eighth highest area for over 50s.

Meanwhile, Purbeck was the rated the 18th highest where just over a third of their workforce were aged over 50.

In the report, the ILC discovered that while the higher proportion of older people in a workforce appeared to lower the overall level of productivity with the report saying that the higher the proportion of over 70s in a local population, the higher the rate of productivity growth.

The report added that whilst rising life expectancy and other factors might raise the age at which productivity peaks, the broad shape of a worker’s lifetime productivity curve is likely to remain, meaning that a higher share of older workers will likely drag down overall levels of productivity.

This, the ILC say, could possibly be because work suffers from diminishing returns - that for every additional year worked, there is a relatively smaller gain in output.

Among one of the many issues noted was that ‘productivity growth’ was at one of the most challenging levels of the century with the UK’s level of economic output currently standing at 21 per cent while the UK’s typical rate of growth over the last five years was just 0.2 per cent.

The report added: “It is no secret that the UK and other developed countries are in the midst of a long run productivity slowdown.”

Ben Franklin, assistant director of Research and Policy at ILC, said: “An older workforce may be a drag on output, but an ageing population could raise the rate of productivity growth. With reference to English Local Authority data, this report provides support to both prevailing conclusions regarding the impacts of ageing on productivity.

“In any case, investment in education and health are likely to remain critical drivers of long run productivity. Both are strongly correlated with the productivity performance of local authorities in our analysis, and focusing on the health and education of the workforce, irrespective of age, is therefore likely to support higher levels of economic output.”

It comes as Work and Pensions Secretary Esther McVey said that older workers should be encouraged by businesses because they can pass on “invaluable skills” to the next generation. She added: “Engendering co-operation, and not competition, within the workforce, is vital for making for a happier workplace.”

At the same time, the Office for National Statistics said that there was a record number of 10 million people over 50 in the workforce adding that by 2035, people aged 50 and over will comprise half of the UK adult population.