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The Conversation
The Conversation
Abigail Taylor, Research Fellow, City-Region Economic Development Institute (City-REDI), University of Birmingham

How better local employment support could help tackle UK labour shortages

Economically inactive people -- those neither working nor actively seeking jobs -- could help tackle UK labour shortages. 1000 Words/Shutterstock

There has been a rise in “economic inactivity” in the UK among people of working age since the start of the COVID pandemic. Although the trend peaked last year, an additional 420,000 people are now in this category compared with early 2020.

People classed as economically inactive are neither working nor actively seeking employment. They include students, retired older people, and those in poor health or caring for others at home. Helping these people return to work would alleviate current UK labour shortages that are increasing workloads for existing staff, limiting output and business growth.

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