Rising Economic Inactivity Among Young Workers Threatens UK Workforce

New data highlights mental health challenges as a key factor driving young people out of the labor market, prompting concerns over economic growth and welfare reform.

• A PwC survey revealed that up to 25% of workers aged 16-24 considered leaving the workforce in the past year, with mental health cited as the leading cause.
• Economic inactivity in the UK, where individuals are neither working nor seeking work, remains high at 21.5%, with younger workers disproportionately affected.
• Businesses report hesitancy to hire individuals who have been out of the workforce due to concerns over skills gaps and long-term inactivity.
• The government plans to overhaul the benefits system, aiming to save £6 billion annually, but faces internal opposition and public concern over potential impacts on vulnerable populations.
• Over half of surveyed businesses are reevaluating employee support measures, such as mental health resources, to retain staff and prevent further workforce exits.

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