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ONS chief ‘ confident’ UK is suffering from rise in economic inactivity

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Tuesday 04 February 2025 2:00 pm

(Photograph by Dan Kitwood/Getty Pictures)

Professor Sir Ian Diamond mentioned he was “very assured” that the UK was affected by an increase in health-related financial inactivity, regardless of query marks in regards to the high quality of the info.

Diamond, the UK’s nationwide statistician, mentioned that work from the Workplace for Nationwide Statistics (ONS) on health-related inactivity “hangs collectively” with a spread of different figures from Division for Work and Pensions (DWP) and the NHS, which level to increased inactivity attributable to sick well being.

In keeping with the ONS, the variety of people who find themselves economically inactive attributable to ill-health has elevated to 2.8m individuals, up from 2.1m within the ultimate quarter of 2019.

“What we now have reported, and what we stick with, is a rise in inactivity linked – not all the time, however typically – to psychological sick well being amongst younger individuals,” Diamond mentioned.

He mentioned there had additionally been a “flight from the labour pressure” amongst over-50s, as a result of growing prevalence of cardiovascular, musculoskeletal and psychological well being situations.

However the ONS has suffered from falling response charges to its flagship labour pressure survey, the supply of knowledge for employment, unemployment and inactivity within the economic system.

Unbiased analysis from the Decision Basis, revealed final November, prompt that as many as 900,000 extra individuals have been in employment than the official figures suggest, that means the employment price could be consistent with its pre-pandemic degree.

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Torquay United in comparison with Manchester Metropolis?

Huw Tablet, chief economist on the Financial institution of England, has prompt that the Financial institution’s personal work on the subject suggests inactivity has remained pretty fixed.

Requested how he may very well be so assured within the inactivity figures regardless of wider points with the survey, Diamond replied: “Please, please, please don’t assume I’m being complacent. I lie awake at evening worrying about this the entire time”.

He defined that the Decision Basis’s work began from a special inhabitants base to the one which the ONS have been utilizing on the time.

“It’s a bit like attempting to check Torquay United with Manchester Metropolis: Its not a really smart comparability,” he mentioned.

The assume tank’s work additionally made assumptions about self-employment and folks out of labor, assumptions which Diamond mentioned it could be inappropriate for the ONS to make.

“We don’t imagine {that a} nationwide statistics institute ought to be making daring assumptions about that,” he mentioned.

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