There has been much talk recently about the ‘unacceptable’ rates of economic inactivity among UK workers. ‘A country of shirkers’ seems to risk becoming the next meme – by which I mean statements that spread like wildfire to become received wisdom while being untrue.
Our chart of the month shows the data.
The UK has, in fact, one of the lowest economic inactivity rates among OECD countries. Bested only by Japan over the long term and by Canada and Germany only in recent years.
Neither is this UK performance offset by more people taking more sick days. As the chart below shows, UK workers take less sick days than their counterparts in most European countries.
The COVID Effect
What is, however, noticeable is that since the COVID pandemic, the UK is the only country among those shown in our chart to have seen a sustained rise in rates of economic inactivity. This has placed it slightly above Germany as of 2022.
It is not clear what is the explanation for that differential post-COVID trajectory for the UK relative to other countries. Clearly something worth exploring further.
None of this is to argue that nothing should be done. While there may be a natural floor to economic inactivity numbers (after all, people do develop disabling illnesses and such like), at over 20%, the figure could do with improvement. In particular, we need to understand why the post-COVID increase and how to reverse it.
The welfare system may well be discouraging productive employment (see box below) and the government has promised change.
But please, let us stop just swallowing statements about ‘a country of shirkers’ that are untrue, demeaning, divisive and wholly unhelpful.
