Quarter of young workers considering quitting the workforce
A quarter of British 18-24 year olds have considered leaving the workforce in the last year in a sign of the increasing impact of economic inactivity spreading across the UK.
Among all UK workers, 10 per cent are currently actively considering leaving work for an extended period, with a further 20 per cent having considered leaving in the last year, data from PwC revealed.
The news comes as a staggering 90 per cent of employers state that they are concerned about a rising wave of economic inactivity.
Economic inactivity, which includes those who are not seeking work or unavailable to work, climbed to 22 per cent of working-age adults last year, according to ONS data.
In PwC’s survey of over 300 firms, six in ten businesses said they had seen an increase in employees leaving the workforce.
“Economic inactivity is a very real problem for people and businesses. As well as the cost to individuals, businesses are understandably concerned about the direct impact on productivity and financial performance,” said Marco Amitrano, senior partner of PwC UK.
Indeed, 81 per cent of employers said productivity has been impacted by economic inactivity, with 77 per cent stating people leaving the workforce had been affecting financial performance.
Despite mass fears around inactivity, employers were reluctant to fix the problem themselves, with 57 per cent revealing they would be worried to recruit someone who had been inactive.
37 per cent associated inactivity with people “gaming the system”, though most believe the largest barriers for people returning to the workforce are skills and education gaps.
PwC identified two main reasons for those considering becoming economically inactive: mental health issues and unfulfilling work, with the former being the most important for young workers.
Despite stating they were considering more support, the survey found a clear mismatch on what employers were planning to offer, as they highlighted benefits such as company car schemes rather than culture or health support.
“If we are serious about reducing economic inactivity and contributing to the government’s ambition of economic growth, then we need joined-up action not only helping people back into work, but more importantly stemming the flow of people out of the work,” added Katie Johnston, local and devolved government leader at PwC.
“This is not an issue for government alone, it needs close collaboration between central and local government, health and education providers and employers.”