What's really happened to the unemployment rate over the past decade - and what will come next
Unemployment, out of work benefits and economic inactivity present tricky political challenges for those in Government, and as ministers return from their Christmas break, workforce issues are likely to become one of the dominant political issues.What’s the difference between unemployment and economic inactivity?– but this is not the same as unemployment.
In statistics, the unemployment rate refers to people who are economically active – they are looking for a job, but they currently do not have one, so are counted as unemployed.Recent increases in economic inactivity have been caused by a number of factors, including the number of people who are, students who are not looking for work, and older workers who have retired early and are choosing not to return.
The number of economically inactive people with a long-term illness is close to its highest level since comparable records began, and while some of these say they would like a job, they are not currently looking for work. This has been a pressing concern for politicians because the rise in economic inactivity, combined with a changing workforce due to Brexit-related immigration changes, has left some industries struggling to hire enough people.What about those who are looking for a job and unable to find one? Statistics tell us that over the past decade, unemployment has generally been falling.
Office for National Statistics labour market data shows there were 1.25 million unemployed people in the UK in August to October 2022. This was an increase of 23,000 from the previous quarter, but down 176,000 from the year before.Prior to the start of the coronavirus pandemic, the unemployment rate was at a historically low level. The disruption caused by Covid-19 caused unemployment to increase briefly, but it has been gradually falling again since the end of 2020.
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