"Britain faces an acute challenge from its weak underlying economic growth and a drop in the number of workers since the pandemic, according to the Bank of England governor, Andrew Bailey. A rise in the number of people defined as long-term sick and a big drop in young people in work factors that he suggested might be intertwined added to the squeeze created by an ageing population."
"Official data shows that the percentage of 16- 64-year-olds active in Britain's labour market is lower than before the Covid-19 pandemic, unlike in other advanced economies. Mental health was the most common reason for being inactive, a point he described as a very concerning development. Bailey added that there were caveats around the data, including a low response rate and the possibility that the economically inactive might be more likely to take part in official surveys."
Britain faces weak underlying economic growth and a reduction in the number of workers since the pandemic. An increase in people defined as long-term sick and a sharp fall in young people in work have contributed to the decline, alongside pressures from an ageing population. Labour force participation for 16-64-year-olds remains lower than before the Covid-19 pandemic, unlike in other advanced economies. Mental health is the most common reason for being economically inactive. Data caveats include low survey response rates, but these do not explain the full decline. Government pledges aim to increase participation and growth.
#uk-economic-growth #labour-force-participation #ageing-population #mental-health-and-long-term-sickness
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