Why are so many Britons not working?

Don’t blame covid or NHS waiting lists. The problem is the welfare system


  • by
  • 09 14, 2023
  • in Leaders

SLUGABEDSlowpokeOECDGDP. . Idler. Loafer. The English language has many evocative terms for those seen as workshy. British politicians have made hearty use of them when debating economic inactivity. Economists, however, used to point out that Britain had a good record on this score. For two decades until 2019 its inactivity rate (the share of people of working age who are neither working nor looking for a job) was among the lowest of any rich country. Then something went awry. Pandemic lockdowns smothered economic activity everywhere. But whereas other economies bounced back—since 2020 the inactivity rate has fallen, on average, by 0.4 percentage points across the , a club of rich countries—in Britain, uniquely, it continues to climb, and is up by 0.5 points. What’s going on?The immediate cause is not disputed: more Britons than ever are classified as unwell. Data released this week showed a remarkable 2.6m people, a record, are economically inactive because of long-term sickness—an increase of 476,000 since early 2020. Inactivity helps explain why firms are struggling with labour shortages and, in part, stubbornly high inflation. And there is a hefty bill. The Office for Budget Responsibility, the fiscal watchdog, says more long-term sickness has added £15.7bn ($19.6bn), or 0.6% of , to annual government borrowing because of lost tax receipts and higher welfare spending.

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