A labour market update from the Office of National Statistics (ONS) has revealed that the UK’s rate of economic inactivity was 21.8% between November 2023 and January 2024, up from 21.6% a year previously.
A total of 9.2 million people aged 16 to 64 are not in work or looking for a job – more than 700,000 more than before the Covid pandemic. The figures found that 25.3% of women are inactive, compared to 18.3% of men.
The inactivity rate grew by 4.5% for 16 to 24-year-olds, by 0.9% for those aged 25 to 34, and by 1.1% for 50 to 64-year-olds; it fell by 0.2% for those aged 35 to 49. The overall increase was driven by students and retirees, the ONS said.
Julia Turney, head of platform and benefits at professional services specialist Barnett Waddingham, called for “a fundamental review” of the barriers that prevent people from working.
She continued: “Government intervention to encourage the 2.8 million long-term sick back into work will be key here, but business leaders have an even more important role in improving workforce health reporting and solving the employee engagement problem.’’