According to official figures, over a fifth of adults in the UK didn’t actively search for work between November 2021 and January 2022. The Office for National Statistics revealed that the UK’s economic inactivity rate was higher than it was last year, standing at 21.8% during the three-month period. This equates to 9.2 million people aged between 16 and 64 in the UK who aren’t currently in work or seeking employment.
The increasing number of workers shortages is a cause for concern for the UK’s economy. Although the number of people not employed or actively looking for work surged during the Covid pandemic, it began to decrease as lockdown restrictions were lifted. Despite this, economists have since highlighted the UK’s economic inactivity rate has proved much more persistent, with over 700,000 people currently not seeking employment compared to pre-pandemic levels.
The Office for Budget Responsibility has revealed that around a third of the working-age inactive population cited long-term illness as the main reason for not being a part of the labour force. To encourage people to find work or increase their hours, Chancellor Jeremy Hunt outlined a series of measures in his Budget last week. The UK government is seeking to address these worker shortages and help those who are currently out of work or not seeking employment to find viable employment opportunities.
The UK’s economy is facing significant challenges due to the ongoing impact of Covid-19, and worker shortages are just one of many issues it is currently dealing with. By reducing the number of individuals who are not actively seeking employment, the UK can better meet the needs of its growing economy and support those who are currently struggling to find work. It remains to be seen how effective the government’s measures will be in achieving these aims
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