UK Economy - Policies to Increase Labour Market Participation

Labour market participation refers to the percentage of the working-age population that is either employed or actively seeking employment. A higher labour market participation rate indicates a more active and productive workforce, which can have positive effects on economic growth, income distribution, and social well-being.

Policies that might improve UK labour market participation

Affordable childcare: According to the Organisation for Economic Cooperation and Development, the employment rate for mothers with children under the age of six in the UK was 64% in 2021, compared to 87% for fathers.

Improving access to affordable housing: According to the English Housing Survey, the % of households in the private rented sector increased from 10% in 2000 to 19% in 2019. 46% of 25-34-year-olds renting privately in 2019.

Investment in education and training to boost human capital: The employment rate for those with higher education qualifications was 88% in 2021, compared to 73% for those with no qualifications.