Rise in long-term sick brings headache for UK economy
Bank of England officials do not usually pore over the details of NHS waiting lists. But, in recent months, the health of the UK workforce has become an urgent question for monetary policymakers.
Britain avoided big job losses at the height of the pandemic but, since Covid-19 lockdowns lifted, it has seen an exodus of older workers from the labour force. The number of people of working age who are economically inactive — neither working nor looking for a job — has risen by more than 630,000 since 2019. And, in contrast with other countries, there has been no sign of them returning — even as inflation puts new strains on household finances.
On current trends, the UK will soon be the only country in the OECD where the workforce remains smaller than it was before the pandemic. At present, it is behind only Latvia and Switzerland.
This story originally appeared on: Financial Times - Author:Delphine Strauss
