UK unemployment rate surges past 20%, with over a fifth of working-age adults not in work or actively seeking employment. The economic inactivity rate has dropped, but the challenge facing Britain’s workforce remains significant.
More than a fifth of working-age adults in the UK are not in work or actively looking for work, according to official figures. The economic inactivity rate has dropped from both the previous quarter and year, but the challenge facing Britain’s workforce remains significant.
The UK's unemployment rate is a key indicator of its economic health.
According to the Office for National Statistics (ONS) , the unemployment rate has fluctuated over the years, ranging from 2.4% in 1973 to 8.5% in 1986 during a recession.
As of 2022, the unemployment rate stands at around 3.9%.
The UK's labor market is influenced by factors such as economic growth, inflation, and government policies.
The Office for National Statistics (ONS) also reports that the number of unemployed individuals has been steadily decreasing since 2015.
The Labour government is targeting an employment rate of 80%, currently standing at 75%. To achieve this goal, the UK needs to move away from a disjointed system that focuses on what people can’t do and towards one that focuses on what they can do. ‘We need to focus on what people can do, rather than what they can’t,’ said Sir Charlie Mayfield, leader of the Keep Britain Working review, notes that there are 8.7 million people in the UK with a work-limiting health condition, an increase of 2.5 million over the last decade.
Sir Charlie Mayfield is a British businessman and former chairman of John Lewis Partnership, a UK-based retail company.
He served as the chairman from 2007 to 2020, leading the organization through significant growth and expansion.
Mayfield has also held various other directorships in companies such as the Bank of England's Court of Directors and the London School of Economics Trust.
He was appointed Knight Bachelor in 2012 for his services to business.
This includes 1.2 million 16 to 34-year-olds and 900,000 50 to 64-year-olds who are out of work due to health conditions. People who are out of work for less than a year are five times more likely to return to work compared to those who are out of work for longer.
Economic inactivity has generally been falling since comparable records began in 1971, but the rate of decline slowed over the year by 0.6%, largely due to an increase in people aged 35 to 49 looking for work. Redundancies rose for the first time in a year to 124,000 in the three months to January.
Pay growth continued to outpace inflation, with wages excluding bonuses growing 5.9% in the quarter. The ‘Bank of England watches the pay and jobs data closely when making decisions on interest rates,’
Established in 1694, the Bank of England is the central bank of the United Kingdom.
Its primary function is to regulate the UK's monetary policy, maintaining price stability and promoting economic growth.
The Bank of England sets interest rates, manages the country's foreign exchange reserves, and acts as a lender of last resort during times of financial crisis.
It also oversees the banking system, ensuring the stability and soundness of banks in the UK.
- bbc.com | UK Jobless Rate Exceeds 20%
