London Daily

Focus on the big picture.
Tuesday, Jan 20, 2026

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
Trump Aides Say U.S. Has Discussed Offering Asylum to British Jews Amid Growing Antisemitism Concerns
UK Seeks Diplomatic De-escalation with Trump Over Greenland Tariff Threat
Prince Harry Returns to London as High Court Trial Begins Over Alleged Illegal Tabloid Snooping
High-Speed Train Collision in Southern Spain Kills at Least Twenty-One and Injures Scores
Meghan Markle May Return to the U.K. This Summer as Security Review Advances
Trump’s Greenland Tariff Threat Sparks EU Response and Risks Deep Transatlantic Rift
Prince Harry’s High Court Battle With Daily Mail Publisher Begins in London
Trump’s Tariff Escalation Presents Complex Challenges for the UK Economy
UK Prime Minister Starmer Rebukes Trump’s Greenland Tariff Strategy as Transatlantic Tensions Rise
Prince Harry’s Last Press Case in UK Court Signals Potential Turning Point in Media and Royal Relations
OpenAI to Begin Advertising in ChatGPT in Strategic Shift to New Revenue Model
GDP Growth Remains the Most Telling Barometer of Britain’s Economic Health
Prince William and Kate Middleton Stay Away as Prince Harry Visits London Amid Lingering Rift
Britain Braces for Colder Weather and Snow Risk as Temperatures Set to Plunge
Mass Protests Erupt as UK Nears Decision on China’s ‘Mega Embassy’ in London
Prince Harry to Return to UK to Testify in High-Profile Media Trial Against Associated Newspapers
Keir Starmer Rejects Trump’s Greenland Tariff Threat as ‘Completely Wrong’
Trump to hit Europe with 10% tariffs until Greenland deal is agreed
Prince Harry Returns to UK High Court as Final Privacy Trial Against Daily Mail Publisher Begins
Britain Confronts a Billion-Pound Wind Energy Paradox Amid Grid Constraints
The graduate 'jobpocalypse': Entry-level jobs are not shrinking. They are disappearing.
Cybercrime, Inc.: When Crime Becomes an Economy. How the World Accidentally Built a Twenty-Trillion-Dollar Criminal Economy
The Return of the Hands: Why the AI Age Is Rewriting the Meaning of “Real Work”
UK PM Kier Scammer Ridicules Tories With "Kamasutra"
Strategic Restraint, Credible Force, and the Discipline of Power
United Kingdom and Norway Endorse NATO’s ‘Arctic Sentry’ Mission Including Greenland
Woman Claiming to Be Freddie Mercury’s Secret Daughter Dies at Forty-Eight After Rare Cancer Battle
UK Launches First-Ever ‘Town of Culture’ Competition to Celebrate Local Stories and Boost Communities
Planned Sale of Shell and Exxon’s UK Gas Assets to Viaro Energy Collapses Amid Regulatory and Market Hurdles
UK Intensifies Arctic Security Engagement as Trump’s Greenland Rhetoric Fuels Allied Concern
Meghan Markle Could Return to the UK for the First Time in Nearly Four Years If Security Is Secured
Meghan Markle Likely to Return to UK Only if Harry Secures Official Security Cover
UAE Restricts Funding for Emiratis to Study in UK Amid Fears Over Muslim Brotherhood Influence
EU Seeks ‘Farage Clause’ in Brexit Reset Talks to Safeguard Long-Term Agreement Stability
Starmer’s Push to Rally Support for Action Against Elon Musk’s X Faces Setback as Canada Shuns Ban
UK Free School Meals Expansion Faces Political and Budgetary Delays
EU Seeks ‘Farage Clause’ in Brexit Reset Talks With Britain
Germany Hit by Major Airport Strikes Disrupting European Travel
Prince Harry Seeks King Charles’ Support to Open Invictus Games on UK Return
Washington Holds Back as Britain and France Signal Willingness to Deploy Troops in Postwar Ukraine
Elon Musk Accuses UK Government of Suppressing Free Speech as X Faces Potential Ban Over AI-Generated Content
Russia Deploys Hypersonic Missile in Strike on Ukraine
OpenAI and SoftBank Commit One Billion Dollars to Energy and Data Centre Supplier
UK Prime Minister Starmer Reaffirms Support for Danish Sovereignty Over Greenland Amid U.S. Pressure
UK Support Bolsters U.S. Seizure of Russian-Flagged Tanker Marinera in Atlantic Strike on Sanctions Evasion
The Claim That Maduro’s Capture and Trial Violate International Law Is Either Legally Illiterate—or Deliberately Deceptive
UK Data Watchdog Probes Elon Musk’s X Over AI-Generated Grok Images Amid Surge in Non-Consensual Outputs
Prince Harry to Return to UK for Court Hearing Without Plans to Meet King Charles III
UK Confirms Support for US Seizure of Russian-Flagged Oil Tanker in North Atlantic
Béla Tarr, Visionary Hungarian Filmmaker, Dies at Seventy After Long Illness
×