The UK's economic inactivity rate stood at 21.8% between November and January, slightly higher than the previous year.

This means that 9.2 million people aged between 16 and 64 in the UK are neither employed nor looking for a job. This figure is over 700,000 higher than before the onset of the coronavirus pandemic.

There are concerns about worker shortages impacting the UK economy, particularly as the country heads into a general election in the coming months, with both major political parties pledging to stimulate growth.

Although the UK entered a recession at the end of last year, with the economy contracting for two consecutive quarters, the latest official data showed that unemployment levels remained stable. Wage growth has slowed down, but it still outpaces inflation.

However, the number of people not engaged in work or actively seeking employment has remained persistently high since the onset of the pandemic.

Various factors contribute to this economic inactivity, including long-term illness, caregiving responsibilities, disabilities, and early retirement. Historically, more women tend to be classified as economically inactive compared to men.

While recent data indicates a decrease in the number of individuals inactive due to sickness, the figure remains higher than estimates from a year ago. There has been a rise in economic inactivity among individuals aged 16 to 34, although the number has decreased among those aged 35 to 64.

To address these challenges, Chancellor Jeremy Hunt has proposed measures in his recent budget aimed at encouraging people to enter or increase their participation in the workforce. These include reducing National Insurance Contribution rates and extending free childcare services for working parents.

However, business groups argue that more comprehensive strategies are needed to address workforce shortages and promote economic growth. They emphasize the importance of investing in skills development, addressing childcare and transportation barriers, and reducing NHS waiting lists.

There is also recognition of the need to better engage younger workers, especially those who have had their education disrupted by the pandemic. Apprenticeships and workplace engagement are seen as viable alternatives to traditional university routes.

While the UK government has emphasized its commitment to reducing economic inactivity, critics argue that more needs to be done to support individuals locked out of the labor market due to long-term illness or other factors.

In addition to economic inactivity figures, the Office for National Statistics (ONS) reported steady unemployment rates and a slight slowdown in wage growth. However, the reliability of the ONS's job market data has been called into question, posing challenges for policymakers, including the Bank of England, in assessing the state of the UK economy. Photo by Betty Longbottom, Wikimedia commons.