The chancellor said the government will ask more than 600,000 more people on universal credit to meet a “job coach” so they can “get the support they need” to increase their hours or earnings. Companies and the public sector are struggling with a chronic shortage of workers, which the Bank of England says is hurting the economy. There are now 630,000 more economically inactive working-age adults – neither looking for work nor working – than before the onset of the Covid pandemic in early 2020. Announcing a review of the issues stopping people from participating in the labor market, due to be completed early next year, Hunt said Britain desperately needed more workers to boost the economy. The number of missing workers has risen amid a sharp rise in the number of older people leaving the workforce and a dramatic increase in long-term illness. The UK employment rate Hunt said he had asked the Department for Work and Pensions to carry out a “thorough” assessment of barriers and incentives to work, while he said the pension age review would also be published early next year. Economists have warned that underinvestment in public services over the past decade, particularly in health and social care, as well as the NHS’ growing backlog from the Covid pandemic, has contributed to the rapid rise in long-term illness among working-age adults . Job vacancies are nearing a record high as employers struggle to find enough hires in a wide range of jobs. Andy Haldane, former chief economist at the Bank of England, has warned that the deterioration of the health of the British people is holding back economic growth for the first time since the Industrial Revolution. But Hunt appeared to suggest that benefit claimants were among the main reasons behind the lack of available workers, as he announced a new investment of £280 million to fight fraud and benefit errors over the next two years. “I’m proud to live in a country with one of the most comprehensive safety nets in the world, but I’m also concerned that we’ve seen a sharp increase in economically inactive working-age adults,” he said in his autumn speech on Thursday. . Subscribe to Business Today Get ready for the business day – we’ll point you to all the business news and analysis you need every morning Privacy Notice: Newsletters may contain information about charities, online advertising and content sponsored by external parties. For more information, see our Privacy Policy. We use Google reCaptcha to protect our website and Google’s Privacy Policy and Terms of Service apply. Official figures show that around 9 million working-age adults are economically inactive, including more than 2.5 million with long-term health conditions, and 2.4 million students. However, far fewer people have universal credit, at around 5.8 million, including 41% of claimants who are already in work. According to the Office for Budget Responsibility, the increase in economic inactivity due to long-term illness is echoing the increase in new claims for disability benefits. Ben Willmott, head of public policy at the Chartered Institute of Personnel and Development, said it was important that the labor market review looked at issues around flexibility and quality of work, as well as support for employment. “Evidence shows that working parents, carers and older workers particularly value and are more likely to need flexible working. This underlines the importance of the Government delivering on its previous commitment to help create more flexible workplaces.”
