London Daily

Focus on the big picture.
Monday, Aug 04, 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's Online Safety Law: A Front for Censorship
Nationwide Protests Erupt in Brazil Demanding Presidential Resignation
Parents Abandon Child at Barcelona Airport Over Passport Issue
Mystery Surrounds Death of Brazilian Woman with iPhones Glued to Her Body
Bus Driver Discovers Toddler Hidden in Suitcase in New Zealand
Switzerland Celebrates 734 Years of Independence Amid Global Changes
U.S. Opens Official Investigation into Former Trump Prosecutor Jack Smith
Leaked audio of Canada's new PM Mark Carney admitting the truth about the Net Zero agenda: "We're gonna make a lot of money off of this."
China Enforces Comprehensive Ban on Cryptocurrency Activities
Absolutely 100% Realistic EVO Series Doll by EXDOLL (Chinese Company) used mainly for carnal purposes
World Economic Forum founder Klaus Schwab: "In this new world, we must accept... total transparency. You have to get used to it. You have to behave accordingly. But if you have nothing to hide, you shouldn't be afraid."
Meet Mufti Hamid Patel, head of Office for Standards in Education in Pakistan
George Soros tells the World Economic Forum: "President Trump is a con man and the ultimate narcissist, who wants the world to revolve around him."
Hamas are STARVING the hostages.
Decline in Tourism in Majorca Amidst Ongoing Anti-Tourism Protests
British Tourist Dies Following Hair Transplant in Turkey, Police Investigate
Poland Begins Excavation at Dziemiany After New Clue to World War II‑Era Nazi Treasure
WhatsApp Users Targeted in New Scam Involving Account Takeovers
Trump Threatens Canada with Tariffs Over Palestinian State Recognition
Trump Deploys Nuclear Submarines After Threats from Former Russian President Medvedev
Trump Sues Murdoch in “Heavyweight Bout”: Lawsuit Over Alleged Epstein Letter Sets Stage for Courtroom Showdown
Germany Enters Fiscal Crisis as Cabinet Approves €174 Billion in New Debt
Trump Administration Finalizes Broad Tariff Increases on Global Trade Partners
J.K. Rowling Limits Public Engagements Citing Safety Fears
JD.com Launches €2.2 Billion Bid for German Electronics Retailer Ceconomy
Azerbaijan Proceeds with Plan to Legalise Casinos on Artificial Islands
Former Judge Charged After Drunk Driving Crash Kills Comedian in Brazil
Jeff Bezos hasn’t paid a dollar in taxes for decades. He makes billions and pays $0 in taxes, LEGALLY
China Increases Use of Exit Bans Amid Rising U.S. Tensions
IMF Upgrades Global Growth Forecast as Weaker Dollar Supports Outlook
Procter & Gamble to Raise U.S. Prices to Offset One‑Billion‑Dollar Tariff Cost
House Republicans Move to Defund OECD Over Global Tax Dispute
Botswana Seeks Controlling Stake in De Beers as Anglo American Prepares Exit
Trump Administration Proposes Repeal of Obama‑Era Endangerment Finding, Dismantling Regulatory Basis for CO₂ Emissions Limits
France Opens Criminal Investigation into X Over Algorithm Manipulation Allegations
A family has been arrested in the UK for displaying the British flag
Mel Gibson refuses to work with Robert De Niro, saying, "Keep that woke clown away from me."
Trump Steamrolls EU in Landmark Trade Win: US–EU Trade Deal Imposes 15% Tariff on European Imports
ChatGPT CEO Sam Altman says people share personal info with ChatGPT but don’t know chats can be used as court evidence in legal cases.
The British propaganda channel BBC News lies again.
Deputy attorney general's second day of meeting with Ghislaine Maxwell has concluded
Controversial March in Switzerland Features Men Dressed in Nazi Uniforms
Politics is a good business: Barack Obama’s Reported Net Worth Growth, 1990–2025
Thai Civilian Death Toll Rises to 12 in Cambodian Cross-Border Attacks
TSUNAMI: Trump Just Crossed the Rubicon—And There’s No Turning Back
Over 120 Criminal Cases Dismissed in Boston Amid Public Defender Shortage
UN's Top Court Declares Environmental Protection a Legal Obligation Under International Law
"Crazy Thing": OpenAI's Sam Altman Warns Of AI Voice Fraud Crisis In Banking
The Podcaster Who Accidentally Revealed He Earns Over $10 Million a Year
Trump Announces $550 Billion Japanese Investment and New Trade Agreements with Indonesia and the Philippines
×