NHS backlogs and Covid leave long-term sick level at record high
The TelegraphJames Smith, ING economist, said that it is “hard to escape the conclusion that this is at least partly linked to delays in the NHS”. He said: “The increasing economic inactivity rate, now standing at 21.7pc, should be a cause for concern.” The UK jobs market has been extremely tight this year as businesses battle for workers. The tightness in the labour market has stoked wage pressures but households are still suffering a huge real terms squeeze as pay fails to keep pace with the highest inflation in 40 years. Victoria Prentis, minister at the Department for Work and Pensions, said the figures “show the strength of our labour market” but admitted action is needed to lure more back into the workforce. She said: “To support economic growth it is vital we encourage workers into the labour market, making the most of the skills and experience this country holds whilst tackling the barriers jobseekers face.”