First of all, what kind of job are you looking for? You left the industry because there were no jobs paying a reasonable wage - are you still looking to earn a proper living out of instructing? Or would you be willing to go back onto the kind of wage you used to earn?
If you are happy to start at the bottom again, then I doubt you'll find too much trouble. When I left my previous employer, they were having real trouble finding PPL instructors (although I believe they have filled their vacancies now).
On the other hand, if you don't want to go back to that kind of money, then you'll be looking for a multi/CPL/IR job. You are already qualified for this, but your lack of currency might be an issue? Can you afford to do a little bit of multi-engine flying to get your currency back?
As for the job market in this area, I've been lucky enough to land myself one such job, but the big issue is that there are so few employers that jobs come up very rarely. The way I got my job was by going through the CAA's list of approved schools, and sending my CV to every school which offered the kind of training I wanted to do. I was a little selective regarding the schools' reputations, locations, etc, but basicallly sent my CV to every one I would be happy working for. I had a few replies along the lines of "we don't need anyone right now, but there are very few people looking for this kind of job, so please re-send your CV each month in case the situation changes." Two companies interviewed me, neither of them had a job to offer me but both wanted to interview me in case a future job came up. Six months after they first interviewed me, and eight months after I first started looking, I was offered a job by my current employer.
On the other hand, during the time I was looking, there were a couple of companies (Oxford and FTE) which were actively advertising for new instructors. Unfortunately, I wasn't keen on working for either of these companies for one reason or another - but it shows that there are jobs out there if you're not fussy.
As for your age, I don't think that's anywhere near as much of a problem for CPL/IR schools as it is for the airlines, I wouldn't worry about it.
Good luck - hope that's some help,
FFF
-------------