LONDON, Sept 10 (Askume) – Britain’s Labour Party on Tuesday set up a new advisory committee to help tackle long-standing problems in the country’s labour market, including reducing high levels of inactivity among the working-age population.
The Make Britain Employment programme aims to get more people back into work and is part of the Government’s plan to reach 80% employment and boost economic growth.
Paul Gregg, chairman of the Labour Market Advisory Committee, said the British job market faced deep challenges.
“We are seeing a sharp increase in economic inactivity and long-term illness, particularly among younger people, since the pandemic,” Greig said.
“In addition, real pay growth has been severely suppressed for 15 years, hurting living standards and government tax receipts. Reversing these trends will be crucial to ensuring the long-term prosperity of the UK labour market.”
The British economy has been slower to recover from the shock of the Covid-19 pandemic than many other large, wealthy countries.
Official data showed that 9.4 million working-age Britons were out of work or looking for work by mid-2024, of which 2.8 million were out of work due to long-term illness, the government said, adding that this also reflects the growing strain on the country. The national economy is in a time of crisis.
Labor market data later on Tuesday is expected to show strong job growth and slower wage growth in July.
Labor, which has been in power since July, said it would overhaul job centres and transfer power to local governments as part of a reform programme this autumn.
