- The number of individuals unable to work due to long-term sickness has surged since the pandemic, affecting hundreds of thousands.
- Newly appointed experts will guide government initiatives as part of an upcoming transformative White Paper this autumn.
LONDON, England – On Monday, September 9, 2024, government advisors convened for the inaugural meeting of the Labour Market Advisory Board to address what has been described as the ‘greatest employment challenge for a generation.’
The board, handpicked by the Work and Pensions Secretary, comprises experts from various sectors, including business, industrial relations, and academia, as reported by the Department for Work and Pensions.
“During our first session, board members provided innovative strategies aimed at reducing economic inactivity and addressing core issues such as poor physical and mental health that keep individuals from obtaining employment. The goal is to attain an 80 percent employment rate,” said a Department spokesperson.
“The board is tasked with generating new initiatives for the Work and Pensions Secretary, aiming to reduce economic inactivity rates, particularly as the UK remains the only G7 nation where employment and inactivity levels have not bounced back to pre-pandemic standards.”
Work and Pensions Secretary, Liz Kendall MP, stated:
“The rising tide of economic inactivity poses our most significant employment issue in decades, with approximately 2.8 million people currently out of work due to long-term sickness. Addressing these systemic issues will be a lengthy process, but we are committed to reforming the economic foundation and reducing economic inactivity. The expertise of this board will be invaluable in driving opportunities and improving the livelihoods across the nation.”
In a previous statement, as health secretary, it was emphasized that reducing NHS waiting lists is crucial for revitalizing the workforce. The board’s immediate focus will be evaluating the impact of health-related issues on employment and exploring ways to assist more individuals in securing quality jobs.
Chair of the Labour Market Advisory Board, Paul Gregg, noted:
“After analyzing the UK’s labour market over the decades, it is evident that we face significant challenges, particularly regarding economic inactivity and long-term sickness post-pandemic, especially among the youth. Furthermore, real wage growth has stagnated for 15 years, negatively affecting living standards and government revenues. Reversing these trends is critical for the long-term health of the UK’s labour market.”
“I am eager to collaborate with board members and the Secretary of State to pursue her vision for economic growth while addressing inactivity and unlocking the true potential of the UK’s labour force.”
The Department for Work and Pensions reiterated:
“The Secretary of State is expected to unveil strategies for decentralizing authority to local entities, enabling them to address inactivity through tailored work, health, and skill plans, outlined in a forthcoming White Paper this autumn. This will also encompass a new youth guarantee for individuals aged 18-21 and plans to revamp job centres by integrating them with the National Careers Service.”
