In the News
Economic inactivity - 1.6m UK adults over 50 unable to work
More here on the decline in the British labour force, and its macroeconomic implications. There has been a near 300,000 increase in the over-50s not working - so how are the government going to coax them back into the labour force? Perhaps not with the offer of a pension MOT! The government hopes to get 3.4m over 50s back to work. But nearly half are too ill to work.
Economic inactivity in the labour market refers to individuals who are not working and are not actively seeking employment. This group of people may include students, homemakers, retired individuals, disabled persons, and others who are not available or interested in participating in the labour force.
Long-term sickness can cause economic inactivity because individuals who suffer from serious illnesses or disabilities may not be able to work or actively seek employment.
This may result in them dropping out of the labour force, which in turn increases the rate of economic inactivity. Furthermore, the lack of work and income can exacerbate the financial difficulties faced by individuals with long-term sickness, creating a vicious cycle that further discourages them from participating in the labour market.