Economic Inactivity: Causes and Consequences

economic inactivity housing associations

“Economic inactivity can have a far-reaching impact on communities and individuals, particularly on those without the skills and qualifications necessary to access decent jobs. We must ensure that those who are most at risk of inactivity are supported with the right education and training opportunities.” – Theresa May, Former Prime Minister of the United Kingdom.

There are many reasons why people may find themselves out of work and not actively seeking employment. This can be due to a lack of available jobs, but it can also be due to personal circumstances or choices. Post-Covid specifically there has been a significant rise in over-50’s who are economically inactive. Interestingly there are over 1.5 million economically inactive people in the UK who do want to work! In this blog post, we will take a closer look at economic inactivity and its causes and consequences. We will also explore what local authorities can do to help residents who are inactive gain employability.

1. Local Authority Responsibility:

Local authorities have a responsibility to ensure that their local residents are provided with the necessary resources and guidance to become employable. Local authorities should provide job-training courses, career advice and mentoring for those out of work

2. Poverty:

Poverty is one of the main causes of economic inactivity. Low-income households often struggle to make ends meet and lack the resources to gain employability. Local authorities should provide financial assistance and create better access to affordable housing, education and other essential services for their residents in poverty.

3. Mental Health:

Poor mental health is another cause of economic inactivity. Local authorities should have robust support systems in place to help those with mental health issues find employment. This could include providing psychological support and guidance, as well as job-training courses

4. Local Economy:

Local economies play a huge role in the employability of residents. Local authorities should strive to create an environment that is conducive for businesses to thrive and provide more jobs for their local residents, especially those economically inactive who are looking for work.

5. Systematic Inequality:

Systematic inequality can be a barrier to employability for some. Local authorities should take steps to address systemic inequality in access to jobs and other resources, so that all members of society have an equal chance at gainful employment

It is important for Local authorities to ensure that their local residents have the necessary resources and guidance to become employable. Local authorities should take action to address systemic inequality, poverty and mental health issues in order to give people a better chance at finding gainful employment. With the right measures in place, Local Authorities can help reduce economic inactivity in their communities


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