Understanding Economic Inactivity and Long-Term Sickness in the UK: A Comprehensive Overview

The latest employment statistics from the PA news agency shed light on the pressing issues of economic inactivity and long-term sickness in the UK. As the labour market continues to evolve, understanding these statistics is crucial for policymakers, businesses, and individuals alike. This article delves into what it means to be economically inactive, the current statistics surrounding this phenomenon, and the implications of long-term sickness on the workforce.

What Does ‘Economically Inactive’ Mean?

The term "economically inactive" is used by statisticians to describe individuals who are part of the labour market but are either unable to start a job or have chosen not to seek employment. This classification is distinct from unemployment, which refers to those actively seeking work but currently without a job.

Economic inactivity can arise from various circumstances, including temporary or long-term sickness, early retirement, caregiving responsibilities (such as looking after newborns), or pursuing education at colleges or universities. Understanding the reasons behind economic inactivity is essential for addressing the challenges faced by different demographics within the workforce.

Current Statistics on Economic Inactivity

According to the Office for National Statistics (ONS), there were approximately 9.30 million economically inactive individuals aged 16-64 in the UK during the three months from May to July 2024. This figure represents an increase from 9.14 million during the same period the previous year and a notable rise from 8.76 million in the pre-pandemic year of 2019. Interestingly, the figure stood at 9.13 million a decade ago in May-July 2014.

This latest total of 9.30 million accounts for 21.9% of all 16-64 year-olds in the UK. Over the past decade, the proportion of the workforce classified as economically inactive has remained relatively stable, fluctuating between 20.5% and 22.4% since the summer of 2014.

Long-Term Sickness and Economic Inactivity

Among the economically inactive population, a significant portion is attributed to long-term sickness. As of May-July 2024, an estimated 2.79 million individuals were economically inactive due to long-term health issues. This figure has risen from 2.71 million a year earlier and 2.05 million in 2019, indicating a concerning trend in health-related economic inactivity.

The ONS adjusted its calculations in July 2022 to incorporate new population estimates, which may have influenced the long-term trend. However, even when focusing solely on data since the adjustment, the number of individuals citing long-term sickness as a reason for economic inactivity has increased, rising from 2.64 million in July-September 2022 to 2.79 million in the latest figures.

Proportion of Economic Inactivity Due to Long-Term Sickness

Long-term sickness now accounts for approximately 30.0% of all economically inactive individuals, a slight increase from 29.7% a year prior. This marks a significant rise from the 23.8% recorded five years ago in May-July 2019. Conversely, the proportion of individuals citing caregiving responsibilities as a reason for economic inactivity has decreased from 23.3% to 18.5% over the same period, while those retiring early have also seen a decline from 12.8% to 11.3%.

Regional Variations in Economic Inactivity

Economic inactivity rates vary significantly across the UK’s nations and regions. In May to July 2024, Northern Ireland reported the highest level of economic inactivity at 27.5% among 16-64 year-olds, while England had the lowest rate at 21.4%.

The regional breakdown reveals that the North-east of England has the highest regional rate of economic inactivity at 26.3%, while the South-west of England has the lowest at 18.3%. Here are the full figures, including year-on-year changes in percentage points:

• Northern Ireland: 27.5% (-0.8)
• Wales: 27.2% (+2.8)
• North-east England: 26.3% (+3.5)
• North-west England: 23.4% (+0.7)
• Yorkshire/Humber: 24.5% (+0.5)
• Scotland: 22.3% (+0.5)
• East Midlands: 21.0% (-0.1)
• West Midlands: 22.9% (+1.2)
• Eastern England: 21.3% (+1.5)
• London: 20.1% (-3.4)
• South-east England: 18.9% (+1.7)
• South-west England: 18.3% (-1.2)

Regional Disparities in Long-Term Sickness

The reasons for economic inactivity also show regional disparities, particularly concerning long-term sickness. The latest data, covering the period from April 2023 to March 2024, indicates that Northern Ireland has the highest proportion of economically inactive individuals due to long-term sickness, while London has the lowest. Here are the figures for long-term sickness as a reason for economic inactivity:

• Northern Ireland: 37.4% (106,000 of 284,000)
• North-east England: 34.1% (142,000 of 415,000)
• Wales: 34.0% (155,000 of 456,000)
• Scotland: 32.7% (259,000 of 791,000)
• North-west England: 30.6% (321,000 of 1,049,000)
• Yorkshire/Humber: 29.2% (241,000 of 824,000)
• West Midlands: 29.1% (233,000 of 800,000)
• East Midlands: 27.8% (177,000 of 637,000)
• Eastern England: 26.3% (200,000 of 758,000)
• South-west England: 26.3% (168,000 of 639,000)
• South-east England: 22.7% (227,000 of 998,000)
• London: 19.0% (251,000 of 1,321,000)

Conclusion

The latest employment statistics reveal a complex landscape of economic inactivity and long-term sickness in the UK. With millions of individuals unable to participate in the workforce due to health issues, it is imperative for policymakers to address these challenges. Understanding the nuances of economic inactivity can help tailor solutions that support those affected, ultimately fostering a more inclusive and resilient labour market. As we move forward, continued monitoring and analysis of these trends will be essential in shaping effective employment strategies for the future.