London Daily

Focus on the big picture.
Tuesday, Nov 25, 2025

Of all the troubling signs, the increase in 'economic inactivity' is perhaps the most worrying

Of all the troubling signs, the increase in 'economic inactivity' is perhaps the most worrying

The number of people classed as economically inactive because they are long-term sick has reached a record high, with the largest rise among the over-50s - taking millions of people out of the workforce.

Of all the troubling vital signs displayed by the British economy, the increase in "economic inactivity" is perhaps the most worrying.

Since the pandemic the number of people neither working nor seeking work for a range of reasons has risen to more than nine million people, one-in-five working age adults.

Initially it was driven by an increase in students deferring the transition to work, but latterly a more worrying underlying trend has emerged; long-term sickness.

The numbers of those classed as economically inactive because they are long-term sick has reached a record high, with the largest rise among the over-50s - taking millions of people out of the workforce.

In the three months from June to August the rate of economic inactivity increased by 0.6 percentage points to 21.7%, with 624,000 more people out of the workplace in August than before COVID-19 stalled the economy.

This is weighing heavily on a labour market already extremely "tight" - the euphemism for an economy struggling to fill the jobs it needs doing.

Unemployment in the quarter to August was down to 3.5%, a 48-year low, but so was employment, the second successive month in which fewer people were working and fully one percentage point below pre-pandemic levels.

The number of vacancies also dipped again, but there are still more unfilled roles than there are unemployed people (defined as those looking for work) with only 0.9 for every available job.


Reversing the rise in inactivity is a huge challenge made harder, and perhaps caused to a degree, by the pressure facing the NHS.

There is a clear link between economic inactivity and NHS treatment delays.


The number of people waiting for non-emergency treatment after being referred has risen from a little below four million to just short of seven million since 2020, and a remarkable 18% of economically inactive over-50s are among them, according to the Office for National Statistics.

For a government fixated on growth to fix public services these data are enough to turn the stomach.

The prime minister has repeatedly said that you cannot have a healthy NHS without a strong economy, but the latest employment trends suggest the opposite is also true; the economy will not have the workers it needs to grow if the health service can't meet demand to get them there.

Newsletter

Related Articles

0:00
0:00
Close
UK Economy Stalls as Reeves Faces First Budget Test
UK Economy’s Weak Start Adds Pressure on Prime Minister Starmer
UK Government Acknowledges Billionaire Exodus Amid Tax Rise Concerns
UK Budget 2025: Markets Brace as Chancellor Faces Fiscal Tightrope
UK Unveils Strategic Plan to Secure Critical Mineral Supply Chains
UK Taskforce Calls for Radical Reset of Nuclear Regulation to Cut Costs and Accelerate Build
UK Government Launches Consultation on Major Overhaul of Settlement Rules
Google Struggles to Meet AI Demand as Infrastructure, Energy and Supply-Chain Gaps Deepen
Car Parts Leader Warns Europe Faces Heavy Job Losses in ‘Darwinian’ Auto Shake-Out
Arsenal Move Six Points Clear After Eze’s Historic Hat-Trick in Derby Rout
Wealthy New Yorkers Weigh Second Homes as the ‘Mamdani Effect’ Ripples Through Luxury Markets
Families Accuse OpenAI of Enabling ‘AI-Driven Delusions’ After Multiple Suicides
UK Unveils Critical-Minerals Strategy to Break China Supply-Chain Grip
Taylor Swift’s “The Fate of Ophelia” Extends U.K. No. 1 Run to Five Weeks
UK VPN Sign-Ups Surge by Over 1,400 % as Age-Verification Law Takes Effect
Former MEP Nathan Gill Jailed for Over Ten Years After Taking Pro-Russia Bribes
Majority of UK Entrepreneurs Regard Government as ‘Anti-Business’, Survey Shows
UK’s Starmer and US President Trump Align as Geneva Talks Probe Ukraine Peace Plan
UK Prime Minister Signals Former Prince Andrew Should Testify to US Epstein Inquiry
Royal Navy Deploys HMS Severn to Shadow Russian Corvette and Tanker Off UK Coast
China’s Wedding Boom: Nightclubs, Mountains and a Demographic Reset
Fugees Founding Member Pras Michel Sentenced to 14 Years in High-Profile US Foreign Influence Case
WhatsApp’s Unexpected Rise Reshapes American Messaging Habits
United States: Judge Dressed Up as Elvis During Hearings – and Was Forced to Resign
Johnson Blasts ‘Incoherent’ Covid Inquiry Findings Amid Report’s Harsh Critique of His Government
Lord Rothermere Secures £500 Million Deal to Acquire Telegraph Titles
Maduro Tightens Security Measures as U.S. Strike Threat Intensifies
U.S. Envoys Deliver Ultimatum to Ukraine: Sign Peace Deal by Thursday or Risk Losing American Support
Zelenskyy Signals Progress Toward Ending the War: ‘One of the Hardest Moments in History’ (end of his business model?)
U.S. Issues Alert Declaring Venezuelan Airspace a Hazard Due to Escalating Security Conditions
The U.S. State Department Announces That Mass Migration Constitutes an Existential Threat to Western Civilization and Undermines the Stability of Key American Allies
Students Challenge AI-Driven Teaching at University of Staffordshire
Pikeville Medical Center Partners with UK’s Golisano Children’s Network to Expand Pediatric Care
Germany, France and UK Confirm Full Support for Ukraine in US-Backed Security Plan
UK Low-Traffic Neighbourhoods Face Rising Backlash as Pandemic Schemes Unravel
UK Records Coldest Night of Autumn as Sub-Zero Conditions Sweep the Country
UK at Risk of Losing International Doctors as Workforce Exodus Grows, Regulator Warns
ASU Launches ASU London, Extending Its Innovation Brand to the UK Education Market
UK Prime Minister Keir Starmer to Visit China in January as Diplomatic Reset Accelerates
Google Launches Voluntary Buyouts for UK Staff Amid AI-Driven Company Realignment
UK braces for freezing snap as snow and ice warnings escalate
Majority of UK Novelists Fear AI Could Displace Their Work, Cambridge Study Finds
UK's Carrier Strike Group Achieves Full Operational Capability During NATO Drill in Mediterranean
Trump and Mamdani to Meet at the White House: “The Communist Asked”
Nvidia Again Beats Forecasts, Shares Jump in After-Hours Trading
Wintry Conditions Persist Along UK Coasts After Up to Seven Centimetres of Snow
UK Inflation Eases to 3.6 % in October, Opening Door for Rate Cut
UK Accelerates Munitions Factory Build-Out to Reinforce Warfighting Readiness
UK Consumer Optimism Plunges Ahead of November Budget
A Decade of Innovation Stagnation at Apple: The Cook Era Critique
×