UK experts raise concern over the escalating economic inactivity and joblessness rates, predicting a workforce that’s ‘sicker and poorer.’ Despite projections of reduced inflation, the overall economic condition continues to plummet, potentially affecting all sectors with less productive, skilled workers. The government’s economic recovery solutions seem ineffective, further aggravating the prevailing socio-economic obstacles.
Statistical data indicate a significant increase of 22.2% in economic inactivity among individuals aged 16 to 64 between December and February. This translates to approximately 9.404 million people not working or seeking employment, a spike of 150,000 and 275,000 compared to the previous quarter and year. A prominent concern for policymakers and economists, this group mainly includes students, homemakers, the long-term sick or disabled, and early retirees. High economic inactivity could lead to decreased productivity and economic growth.
The Institute for Employment Studies attributes this growth to an increased number of students and people unable to work due to ongoing health conditions. Remarkably, there’s a substantial drop of nearly a million in labor market participation compared to four years ago.
Concerns extend beyond joblessness to those not seeking employment, indicating a struggling labor market and slowing economic advancement.
Escalating economic inactivity in UK’s workforce
Increasing cases of people not actively pursuing employment are a blow to the country’s economic health. Despite efforts, the government seems to struggle to tackle this pervasive economic inactivity issue.
According to the Institute for Employment Studies’ director, Ben Harrison, the UK workforce is becoming ‘sicker and poorer’ with newly hit unemployment levels of 4.2%. About 2.82 million individuals are now economically inactive due to persistent illnesses, and approximately 916,000 job vacancies exist. This problem is not limited to individuals but impacts the entire economy. Harrison points to limited healthcare access, lifestyle issues, and the demands of specific jobs as contributing factors. He emphasizes the need for sturdy health support systems and flexible work environments.
Due to growing economic inactivity, businesses voice concerns over persistent skills and labor shortages. They stress the need for more aggressive governmental action, including expanding government-funded childcare, improving adult skills training, enhancing the education system, and reforming the immigration system. Businesses indicate an urgent need for resource allocation toward improving the domestic labor supply chain.
