IoD press release Growth in economic inactivity rate is concerning for business

Commenting on this morning’s release of labour market statistics that showed an increase in the economic inactivity rate in the three months to March 2024, Alexandra Hall-Chen, Principal Policy Advisor for Employment at the Institute of Directors, said:

“With another fall in vacancies and a small increase in the unemployment rate, there are signs of the labour market easing.

“However, the rise in economic inactivity over both the quarter and the year is a worrying development for businesses, given its potential to exacerbate persistent skills and labour shortages in the UK. The ongoing expansion of government-funded childcare is a welcome step to increasing labour market participation, but more action from government is urgently needed to increase domestic labour supply.”