Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Worklessness Threatens UK Economic Growth as Economic Inactivity Hits 13-Year High

by June 12, 2024
June 12, 2024
Worklessness Threatens UK Economic Growth as Economic Inactivity Hits 13-Year High

Worklessness has emerged as a significant threat to the UK’s economic growth, economists warn, following official data revealing a sharp rise in economic inactivity.

According to the Office for National Statistics (ONS), the number of adults not in employment or seeking work increased to over 9.4 million in the three months to April, the highest since 2011, post-financial crisis.

Among the economically inactive, a record 2.83 million attributed their status to long-term sickness. Employment levels fell by 139,000 during this period, while unemployment increased by a similar number, with more than 1.5 million people now unemployed—the highest figure since 2021.

Tony Wilson, director of the Institute for Employment Studies, highlighted the severity of the situation, noting that the UK is almost alone among developed economies in experiencing a decline in employment rates since the pandemic. He stated, “When employment stops growing, so does the economy. This parliament has seen the largest rise in economic inactivity and the largest contraction in the size of the workforce since comparable records began in 1971.”

Alexandra Hall-Chen from the Institute of Directors pointed out that nearly half of businesses are struggling to find necessary staff, exacerbated by the increasing number of people exiting the job market. She emphasised, “Stabilising rising costs and bringing people back into the workplace needs to be a focus for the next government. Without action to increase domestic labour supply, strong economic growth will be all but impossible.”

The ONS data also showed unexpected wage growth in the last quarter, complicating the Bank of England’s plans to reduce interest rates this summer. Average regular earnings rose by 6% over the past year, partly driven by a nearly 10% increase in the minimum wage.

Economists suggest that the wage pressure makes it unlikely for the Bank of England to cut interest rates before the election. Simon French of Panmure Gordon remarked that wage growth remains “too hot” to justify reducing borrowing costs, while Thomas Pugh from RSM added that the combination of strong pay growth, sticky inflation, and the upcoming election leaves almost no chance for a rate cut in the near future.

Labour’s shadow work and pensions secretary, Liz Kendall, criticised the Conservative government’s handling of the worklessness crisis. She said, “On Rishi Sunak’s watch, a record number of people are out of work due to long-term sickness at terrible cost to them, to business and the taxpayer, and we remain the only G7 country whose employment rate still isn’t back to pre-pandemic levels.”

The Conservative manifesto, launched on Tuesday, promises to “tighten up how the benefits system assesses capability for work.” From September 2025, those with moderate mental health issues or mobility problems will receive tailored support to help them engage with the workforce, rather than being placed on benefits.

The escalating issue of worklessness and economic inactivity presents a significant challenge for policymakers aiming to revitalise the UK’s labour market and ensure sustainable economic growth.

Read more:
Worklessness Threatens UK Economic Growth as Economic Inactivity Hits 13-Year High

0
FacebookTwitterGoogle +Pinterest
previous post
Marketing: It’s the emotion, stupid
next post
Winners and losers emerge following Hunter Biden’s guilty verdict in gun trial

You may also like

Google faces €25bn lawsuit in UK and EU...

September 13, 2022

Marketing strategies for live bingo: How to attract...

May 1, 2023

Six Scottish startups showcased at Virgin Hotels Edinburgh

August 16, 2022

UK Economy Shows Signs of Recovery, Exiting Recession

May 7, 2024

Beyond the Four-day Week: CEO of Small Financial...

September 3, 2024

The Success Of Bitcoin Written In Pandemic

October 20, 2022

Invest in Women Taskforce secures over £250m to...

November 26, 2024

How Eyewear is Becoming the New Business Accessory:...

April 15, 2025

The government has made little progress on tackling...

March 12, 2024

UK Entrepreneurs unite to help business owners succeed...

September 12, 2022

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Barclays exits Entercard joint venture with £200m sale to Swedbank

      August 28, 2025
    • Is Trump considering bold Africa play to push back on China, Russia and Islamic terrorists?

      August 28, 2025
    • ‘Gender bonus bias’ revealed as men nearly 1.5 times more likely to receive bonuses than women

      August 28, 2025
    • Four in five online small businesses expect growth despite UK economic headwinds

      August 28, 2025
    • Tesla sales slump 42% in Europe as BYD overtakes market share

      August 28, 2025
    • “XRP Futures Hit $1B — WinnerMining Cloud Mining Shows You How to Earn $1,850 a Day”

      August 28, 2025

    Categories

    • Business (8,908)
    • Investing (2,246)
    • Politics (16,504)
    • Stocks (3,228)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved