INACTIVE Britons are holding the economy back from reaching its full potential, says a Bank of England policymaker.
The proportion of people does not work neither active job search increased 0.7 percent between 2019 and the beginning of this year, figures show.
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Jonathan Haskell, an interest rate setter, said: “The increase in economic inactivity will slow growth in the UK.”
This is in contrast to inactivity increases during the pandemic but then fall back to 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 after Covid to return to work.
Haskell also welcomed the close involvement of the independent forecaster’s Office of Budget Responsibility with Chancellor Kwasi Quarteng’s economic plans.
He added: “A sidelined OBR generates more uncertainty by degrading everyone’s information base.”