UK Government Establishes Board to Address Labour Market Inactivity – Reuters

LONDON (Reuters) – The Labour Party of Britain unveiled a new advisory board on Tuesday aimed at tackling persistent challenges in the country’s labor market, particularly the high levels of inactivity among working-age individuals.

The initiative, branded as the "Get Britain Working" plan, is designed to encourage more people to re-enter the workforce as part of the government’s goal to achieve an 80% employment rate and accelerate economic growth.

Paul Gregg, the chair of the Labour Market Advisory Board, highlighted the deep-rooted challenges facing the UK labor market.

"We have observed a significant rise in economic inactivity and long-term health issues, especially among young people in the wake of the pandemic," Gregg stated.

He further noted that real wage growth has stagnated for 15 years, adversely affecting living standards and government tax revenues. "Reversing these trends is crucial for the long-term health of the UK’s labor market," he emphasized.

The recovery of Britain’s economy from the impacts of the COVID-19 pandemic has lagged behind many other affluent nations.

Recent official statistics indicated that as of mid-2024, 9.4 million working-age individuals in Britain were neither employed nor seeking work, while 2.8 million were out of work due to chronic illness. The government attributes part of this issue to the long waiting times within the increasingly strained National Health Service.

Later on Tuesday, labor market data is expected to reveal robust employment growth and a slowdown in wage increases for July.

Since assuming power in July, the Labour Party has announced plans to revamp job centers and decentralize authority to local communities as part of its reform agenda set for this autumn.