In an election year, jobs and benefits are often centre stage. Alongside the UK’s stagnant wage growth, there is one big issue that will face the next government: the rises in economic inactivity and health-related benefit claims. Real pay growth, unemployment and vacancies have all returned roughly to 2019 rates. But there is one aspect of the labour market that remains far from normal: the UK employment rate is still lower than pre-pandemic, with economic inactivity up from 20.5 per cent to 21.8 per cent, equivalent to 700,000 people. And the continued rise shows little sign of slowing as the pandemic recedes. The UK is the only G7 country with a lower employment rate than before the pandemic. The report showed the upward trend in long-term sickness started before the pandemic and has lasted for 54 months.
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- United Kingdom
