Millions of ‘economically inactive’ people make up the UK’s population (Picture: Getty/Metro.co.uk)

When Samantha Beech had her baby girl, she was considering heading back to her job as a teaching assistant on a part-time basis. She loved her work, and was hoping to return after taking statutory maternity leave.

However, when she and her husband crunched the numbers in 2021, they discovered that they could not afford childcare if Samantha even returned on a full-time basis; her entire monthly salary was dwarfed by nursery costs.

‘It didn’t seem worth the trade-off, that I would miss out on some of my daughter’s milestones to go to job that wouldn’t pay me enough,’ she tells Metro.

At the time, Samantha was just one of an estimated 11 million people who do not currently have jobs, but are not considered unemployed. They are classed as ‘economically inactive’ – unable to work due to illness, caring for family members, or unable to look for employment.

Samantha realised her work salary would be dwarfed by nursery costs for her young daughter (Picture: Supplied)

In December 2023, economic inactivity reached the highest levels in the UK since 2012. It proves to be an ongoing problem for the UK government as the country now faces historically low levels of productivity (in economics terms, the measure of a worker’s input versus a business’s output) – leading to stagnant wages, underperforming businesses, and low living standards.

In a bid to get people back to work, last month health secretary Wes Streeting suggested using the controversial weight loss jab Ozempic on those who are overweight and unemployed.

Meanwhile, Liz Kendall, the work and pensions secretary put forward the idea that job coaches could visit mental health patients when they are in hospital to help them get back to work.

Response to both suggestions have been divisive, with some disability charities expressing concern that the National Health Service is being turned into a means of stimulating people to be economic agents as opposed to a facility to help people get better.

Health secretary Wes Streeting made controversial comments about utilising the weight loss jab Ozempic to get people back to work (Picture: Leon Neal/Getty Images)

‘It is ridiculous to try and turn a hospital, a place of care and support into a business setting,’ Mikey Erhardt, campaigner at Disability Rights UK, told the BBC.

Despite archaic stereotypes of non-working people being ‘lazy’ or ‘work-shy’; statistics show that in reality 1.7 million of those in this situation want to work, but employers are not offering adequate salaries – or support. 

This is certainly the case for Daisy*; having been diagnosed with bipolar disorder when she was 21, she found her symptoms worsening as she got older.

‘My workplace wasn’t happy that I was on lithium to manage my symptoms,’ she tells Metro.

‘You mention mental health issues to employers and their alarm bells start ringing, as if we’re going to be liabilities. You’ve got to just try and look for a job that you think might suit your abilities. What actually would be helpful if you had mental health trained experts who could match people with mental health-friendly employers.

Poor mental health and burnout can drive people away from work (Picture: Getty Images/Maskot)

‘People with mental health issues can be constructive part of the workforce, but it’s just maybe understanding we may need additional support.’

Flexibility is hugely important for those with mental health problems in the workplace, says Nil Guzelgun, Head of Policy and Campaigns at mental health charity, Mind.

‘Many people with mental health problems who are unemployed want to work, with around 58% of those out of work saying they would like a paid job,’ he tells Metro. ‘But too many struggle to find employment which gives them the flexibility to work and manage their mental health problems in a meaningful way.

‘People with mental health problems who receive unemployment benefits have told us they would like to work or make steps that allow themselves to live more independently, but the threat of sanctions makes it difficult for them to do so. Many have said that returning to work before they are well enough has had a detrimental impact on their mental health, leading to worsening symptoms which impedes their recovery.’

Wages for many Brits now barely cover rising living costs (Picture: Getty Images)

Nil adds that, like Daisy, tailored advice from experts should be given to help those who have mental health issues to aid them into workplaces.

‘That support just isn’t there,’ he says. ‘With over two million people on waiting lists for NHS mental health services it is clear that the focus should be on increasing funding in the system.

‘In order to best help people with mental health problems back into work we need effective support in the workplace, employment support programmes, such as Individual Placement Support (IPS) schemes, that are not tied to benefits and the threat of sanctions, and an increased and more flexible statutory sickness pay.’

Vicky Walker, Group Director of People at health and wellbeing specialists Westfield Health, adds: ‘The UK has recently been coined as a ‘burnout nation’, emphasising the gravity of employees’ worsening mental health.

‘In our 2024 research, nearly 3 in 10 (30%) employees reported a decline in their mental wellbeing over the past year. Burnout, stress, and financial worries were cited as significant contributors to worsening mental health.’

Nearly 3 in 10 employees reported a decline in mental wellbeing in the past year (Picture: Getty Images)

But it’s not just our mental health proving a workplace barrier, it’s also our physical health, as the rise in the bill for working-age health-related benefits has surged from £36bn before the pandemic to £48bn in the last financial year. Statistics show these recipients are also skewing younger, sparking fears that an entire generation may be left locked out of the workforce.

Another issue for many is adequate pay – especially when it comes to supporting parents who want to head back to the workplace.

According to the Office of National Statistics, 29% of mothers with children aged 0 to 4 are economically inactive. It’s of little surprise, as the UK has one of the most expensive nursery systems in the world. Figures gathered by Coram for their 2024 Childcare Survey has found the average cost of sending a child under two to a nursery full time costs on average a staggering £15,709 per year.

‘It didn’t seem right for me to put my daughter in nursery to have less money, particularly without factoring in rising bills,’ Sam says.

According to the Office for National Statistics, 4.4% of people were unemployed in the period between February-April 2024 (Picture: Getty Images)

But it’s not just parents feeling the financial strain. The cost of living crisis has impacted every demographic by triggering higher rents, energy bills and groceries, which are quickly outstripping stagnating wages.

‘The juice needs to be worth the squeeze,’ explains Jim Moore, Employee Relations Partner at Hamilton Nash. ‘We want to incentivise people back to work – but there has been labour shortages in some sectors, particularly after Brexit, because the money being offered is not good enough.’

Not all organisations offer adequate wage progression and job security, leading to a sense of stagnation for many workers, adds Vicky Walker.

‘With high inflation continuing to outpace wage growth, the incentive to work has fallen, as the financial rewards need to be more sufficient to cover living expenses or improve living standard,’ ‘ she tells Metro.

It’s of little surprise, then, that we’re seeing a creeping sense of apathy when it comes to the world of work, particularly amongst younger generations.

A lack of flexibility – when it comes to hybrid working or mental health support – puts off people returning to work (Picture: Getty Images)

Gen Z, in particular, seems detached from more traditional means and modes of employment. According to consulting firm McKinsey, 77% of the generation born between 1996 and 2010 prioritise work-life balance, with around three-quarters of younger workers willing to quit a job if they do not offer flexible working.

Gen Z are also less bothered about climbing up corporate ladders; with more than half (52%) saying they do not wish to hold management positions, instead favouring individual means of progression – a phenomenon described as ‘conscious unbossing’ by recruitment consultancy Robert Walters.

‘Younger professionals, having entered the workforce in a largely remote or hybrid capacity with a huge focus on digital capabilities are less inclined towards complete company loyalty,’ Lucy Bisset, the consultancy’s Director, tells Metro.

‘Those new to middle management experience a steep step-up in workload, further expectations to be ‘always available’ to those they manage, as well continuing pressure to hit their own targets – it’s clear how these roles can prove overwhelming and deter many from taking on the extra responsibility.’

With the world of work being in flux, what can be done to help people currently not working onto a career ladder that works for them?  While a simple solution may be just ‘offering better wages’, workplaces need to realise that office culture – and employees – are changing.

Gen Z are bucking the trend when it comes to work priorities (Credits: Getty Images)

In Sam’s case, she enrolled with Tiney – a platform helping women return to work as childminders, and giving them training to help them get back into a professional environment.

‘While I have a wide range of experiences in childcare and education, after a year off, I felt really rusty and I had lost some confidence,’ she says. ‘I think a lot of women, especially mums who have been off, begin to doubt themselves.

‘Companies should look at development and what they’re offering to help people who have been out the workforce back.’

Vicky Walker agrees that businesses need to assess whether their current arrangements do work for their employees.

‘Workplaces and the labour market are ever-changing spaces. We must appreciate that traditional work structures, like nine-to-five schedules and return-to-office policies, are increasingly unfavourable in today’s society,’ she explains.

Employers need to strive to create healthy work environments to retain staff, experts say (Picture: Getty Images)

‘For employers, building this culture starts with understanding what employees need to feel happier and healthier at work. Holding one-on-one meetings to assess individual needs and conducting anonymous surveys to encourage open feedback is an excellent way for employers to understand their workers’ needs.’

Meanwhile, Jim adds that companies that don’t adapt will struggle. ‘We’re already seeing a sort of a Darwinian process taking place, where organisations that have been trying to issue return to office mandates are finding that that backfire,’ he says. ‘Candidates are being much more selective about work for now, and so those that are forcing return to office mandates are finding it harder to attract and retain top talent.’

Many experts believe that if we really do want to tackle the lack of productivity in the UK workforce, employers need to also start working for employees, rather than vice versa.

‘Flexible work arrangements, including remote work options and adaptable hours, are no longer just “nice to have” but essential for many workers, especially carers, parents or those battling chronic conditions,’ says Vicky. ‘Without these, employees often experience lower job satisfaction and engagement, leading to higher turnover.

‘So, organisations should explore more adaptive working structures, where they can, to better align with this modern workforce’s needs and values.’

Metro has contacted the Department of Work and Pensions for comment.

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