INACTIVE Brits are holding back the economy reaching its full potential, a Bank of England policy maker says.
The proportion of people not working nor actively searching for a job has risen by 0.7 per cent between 2019 and the start of this year, figures show.
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Jonathan Haskell, an interest rate setter, said: “The rise in economic inactivity will hold UK growth back.”
This contrasts with inactivity increasing during the pandemic but then falling back over the same time frame in most countries in the developed world.
Prime Minister Liz Truss recently said she wants to encourage those who are economically inactive following Covid to get back into work.
Haskell also welcomed the close involvement of the independent forecasters’ Office of Budget Responsibility in Chancellor Kwasi Kwarteng’s economic plans.
He added: “A sidelined OBR generates more uncertainty by worsening everyone’s information base.”
