Statistics have revealed an increase in economically inactive adults since the Covid-19 pandemic in 2020. These are working age adults who are not employed and are not formally unemployed whilst looking for work.
The Office for National Statistics (ONS) has published data in April 2024, showing that the percentage of economically inactive adults has increased by approximately 2 percent since 2020. The statistics show that from December 2023 to February 2024, approximately 9.4 million adults aged 16 to 64 fell into the category of being economically inactive. This is a significant increase from February 2020, when approximately 850,000 adults in this age range were classed as economically inactive.
According to the ONS, increases in economic inactivity in the first year of the pandemic were mostly driven by those aged 16 to 24. Following the pandemic, increases were driven by those aged 50 to 64. However, the increase seen in economic inactivity in the latest quarter was mainly driven by those aged 16 to 34, and mainly by those inactive because they were students or those on long-term sickness.
The cause(s) of the overall increase in economic inactivity will need to be analysed and ascertained. Many point to a mental health pandemic which has arisen since the Covid-19 pandemic, particularly among younger people. If this is true, one would expect the impact of the Covid-19 pandemic on the mental health of the UK workforce to reduce over time. Employers will increasingly be required to be mindful of the mental health of their staff and make reasonable adjustments to ensure that workers with mental health conditions can work in a safe and productive environment.
