Karenn Elmer, with work colleague Angela Pickering, found full-time work with Hallmark Homes on the Gold Coast. Picture: Lyndon Mechielsen Source: News Corp Australia

Unemployment is rising five times faster for Australians in their 50s than for those in their 20s, the latest social-security data reveals, creating a “grey army” of 50,000 long-term jobless.

Older jobseekers will soon be forced to hunt for full-time jobs, or lose their Newstart payments, as part of an Abbott government welfare crackdown.

“Given the ageing workforce and the fact that most people aged 55 have many potentially prod­uctive years ahead of them, it is no longer acceptable for 55-59-year-old jobseekers to effectively retire on Newstart while undertaking a bit of voluntary or part-time work,’’ the Employment Department has told a Senate inquiry into the government’s welfare bill.

Federal Age Discrimination Commissioner Susan Ryan yesterday blasted the department’s “completely wrong’’ choice of language.

She said many older people applied for hundreds of jobs, yet never got an interview due to widespread age discrimination by employers.

“If you’re 55, you’ve got 10 years before you get the Age Pension, so imagine trying to spend 10 years on the tiny amount of money you get on Newstart,’’ Ms Ryan said yesterday.

“The implication that they are willing to hang around on New­start while doing a bit of volunteer work as a preferred position is completely wrong.

“People in that age group, more than young people, are desperately seeking employment — often they have mortgages and are still rearing kids.’’

The number of over-50s who have been out of work more than a year soared 16 per cent to 49,985 in the 12 months to September, while the total number on the dole rose by 9 per cent to 79,163.

Unemployment among 21-29-year-olds rose just 1.7 per cent, to 112,130, including 67,139 who have been on the dole more than a year — an 11 per cent jump.

But 384 unemployed Australians in their 50s — including 135 with disabilities — have found work through the government’s Restart wage subsidy scheme. Employers can pocket $10,000 over two years if they hire a worker aged 50 or older, who has been out of work for at least six months.

Queensland builder Hallmark Homes recently hired 58-year-old receptionist Karenn Elmer, who spent two years on the dole after being made redundant from her previous job.

Sales and marketing manager Stephanie Long praised Ms Elmer’s experience and mature attitude.

“She’s so switched-on and nothing’s ever too much trouble,’’ she said yesterday.

“I’ll be going for more mature-aged workers from now on — they are very knowledgeable, there are no excuses and they have a great work ethic.’’

Ms Elmer said she had struggled on Newstart after losing her job in 2012. “It’s like I went from zero to hero when I got this job,’’ she said yesterday.

“I’m so glad someone believed in me; I guess it’s my old-school training and respect, and things like manners .’’

Ms Elmer said it was “ridiculous’’ for the Department of ­Employment to suggest older people wanted to “retire” on the $258-a-week Newstart allowance, which pays $130 a week less than the Age Pension.

“My world turned upside-down when I lost my full-time job and I was living below the poverty line for two years,’’ she said.

Under the existing welfare rules, jobseekers aged 55 or older do not have to seek full-time work to get the dole, so long as they are volunteering or working part-time. Under the draft legislation, they will be required to apply for full-time jobs, in line with young­er jobseekers, from January 1.