UK Economic Inactivity Hits Record Highs, Employment Rate Lags Behind G7UK Economic Inactivity Hits Record Highs, Employment Rate Lags Behind G7 New labor market data has revealed a grim picture for the UK economy, with economic inactivity reaching record highs. The UK is the only G7 country where employment levels have yet to recover to pre-pandemic levels. Government Announces Plans to Address Economic Inactivity In response to these concerning figures, Work and Pensions Secretary Liz Kendall has condemned the government’s inaction and the lack of support provided to individuals seeking employment. To address the issue, the government has unveiled a comprehensive plan to get Britain back to work and boost growth. Key Features of the Plan The plan includes the following key measures: * A review of job centers to improve their effectiveness * A youth guarantee for young people aged 18 to 21 * New plans for jobs, health, and skills * A new national jobs and careers service * Work, health, and skills plans led by local areas Government Commitment to Economic Recovery Finance Minister Rachel Reeves has emphasized the government’s commitment to economic growth, recognizing that it is crucial for improving living standards. The plan to tackle economic inactivity will be a collaborative effort across departments, including the Health Department’s initiatives to reduce NHS waiting times and support individuals in returning to work. Urgent Call for Action The government has urged immediate action to address the escalating economic inactivity. They believe that their comprehensive plan will empower local areas to tackle barriers to employment and create a brighter future for all citizens. Additional Statistics * The percentage of people in employment has fallen to 74.4%. * A record 2.8 million people are now unemployed due to long-term sickness. * The Foreign Secretary recently outlined the government’s broader plan to boost economic growth and reduce regional disparities.
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New labour market data shows economic inactivity is near record highs, with the UK the only G7 country whose employment rate has not yet returned to pre-pandemic levels.
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Work and Pensions Secretary Liz Kendall said people were being ignored and not getting the support they needed to get into work and continue their jobs.
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Plans to get Britain back to work and growth include a review of jobcentres, a youth guarantee and new plans for jobs, health and skills.
Data published this morning by the Office for National Statistics (ONS) also showed that the percentage of people in employment has fallen to 74.4%, while a record 2.8 million people are now unemployed due to long-term sickness.
Today’s figures come a week after the Foreign Secretary outlined how the government’s plan to get Britain moving again will tackle economic inactivity and boost growth in all corners of the country.
In addition to measures to make work pay, improve skills and tackle the root causes of unemployment, including poor physical and mental health, the plan will deliver:
A new national jobs and careers service to help more people get into and stay in work.
New work, health and skills plans for the economically inactive, led by mayors and local areas.
A youth guarantee for all young people aged 18 to 21.
Liz Kendall MP, Minister for Work and Pensions, said:
Spiralling economic inactivity, rising unemployment and the UK standing alone as the only G7 country where employment has still not returned to pre-pandemic levels. This is a truly terrible legacy that the government is determined to tackle.
Behind these statistics are real people who have been ignored for far too long and who have not received the support they need to get into work and stay successful.
It’s time for change – in every corner of the country. That’s why we’re taking immediate action to fulfill our mission of growth and spread jobs, prosperity and opportunity to everyone, wherever they live.
Our plan to get Britain talking again will overhaul job centres, introduce a Youth Guarantee and give local areas the power they need to tackle economic inactivity and remove barriers to a better future.
In her first days in office, Finance Minister Rachel Reeves announced the government’s first steps to achieve economic growth, which is the only way to improve the country’s prosperity and the living standards of working people.
Finance Minister Rachel Reeves MP added:
Economic growth is our national mission and getting people back to work is essential. It is the best way to improve living standards for everyone. That is why I have already taken action to rebuild the foundations of our economy so that we can rebuild Britain and make every part of our country better off.
The plan to deliver growth, get people into work and improve the labour market will be a whole-of-government effort. For example, the Health Secretary will outline how cutting NHS waiting times can get Britain healthy and back to work.
