Older people are finding it increasingly difficult to find jobs despite being more flexible and reliable and a shortage of skilled workers..

They are viewed as second-class citizens and face blatant discrimination in employment.

A study, Age Discrimination in Public Policy, found an "older" person in the job market could be someone in their 30s or 40s.

In other areas of life, it generally meant someone of 55 upwards.

Paul Cann, director of policy at Age Concern, called for a review of public policy to give older people a fairer deal and outlaw discrimination in the workplace.

The Employers' Federation on Age has also called for a change in the law to stamp out discrimination.

Campaign director Sam Mercer, said its campaign was designed to help firms adapt successfully to new markets and keep them up with the latest trends and legislation.

She said: "As the workforce ages and contracts, skilled workers will increasingly come at a premium. Companies that fail to respond to this threat will put their future growth and profitability at risk, while missing out on the benefits of greater age diversity."

Craig Anderson, of Brighton-based Thinkwell, an employment agency specialising in placing older workers, said Government attempts to tackle ageism had failed and the problem remained widespread.

He co-founded the firm with Alain van Gils to help older people find employment and encourage employers to consider recruiting from the 45-plus age group.

Business information group ICM found 31 per cent of people aged 51 to 64 had been discriminated against in employment because of their age.

It claimed the voluntary code of practice, which the Government adopted in 1999 to discourage ageism in employment, had failed.

The Government has pledged to incorporate into UK law Article 13, an EU directive designed to outlaw unfair discrimination at work on the grounds of sexual orientation, religion, and age, in UK law. This is not expected to happen until 2006.

Mr Anderson, director of Thinkwell, said: "To be blunt, the findings of the survey don't come as a shock to us at Thinkwell.

"We speak to more than 100 companies every week and most have never heard of the code of practice."

Legislation in 2006 would be the catalyst for change but it would not help the multitude of older people now looking for employment.

Mr Anderson said: "What purpose does a code of practice serve if it is not enforceable by law and doesn't help the very people it is supposed to?

"We fight ageism every day in our attempt to make companies aware of the benefits of employing older candidates.

"But we have been told by respected local companies point blank candidates aged 45 and over are too old.

"We need socially-responsible and forward-thinking companies to support the older worker and promote age diversity in the workplace.

"Fortunately, we are working with a number of companies who appreciate the benefits of experience. Companies across all sectors.

"We need more public/private partnerships like our alliances with the Sussex Careers Service and the Employment Service, which seeks to ensure older employees are given every chance to find employment."