The UK government is facing increasing pressure to address the issue of unemployment. Data reveals that 9.4 million Britons are neither employed nor actively seeking work. This accounts for over a fifth of the working-age population and includes a near-record number of individuals on long-term sickness leave.

The situation poses a significant challenge for Chancellor Rachel Reeves as employers struggle to find the necessary workforce, hindering economic growth. Reeves has promised action in the upcoming budget, stating, "If you are capable of working, you should be working."

However, the Tories have criticised Labour's workers' rights policy, arguing that it would make it more difficult and costly for businesses to hire employees.

According to the Office for National Statistics, the number of economically inactive individuals stood at 9.4 million in the three months leading up to June, comprising 22.2% of 16 to 64-year-olds. This represents an increase of350,000 from last year and a million since the pandemic's start. The number has remained persistently high in recent months, reaching levels not seen in over 12 years.

The economically inactive include individuals on long-term sickness leave (2.803 million), students (2.56 million), and those responsible for caring for family or home (1.728 million). Additionally, 228,000 are on temporary sick leave, and 1.062 million have retired before age 65.

Moreover, 27,000 individuals are classified as "discouraged workers," meaning they are not actively seeking employment due to a lack of available jobs. An additional 1.001 million are inactive for various reasons, including awaiting the outcome of a job application and not yet searching for work or not requiring/wanting employment.

Recent government figures have indicated that since 2019, more vacancies have been filled by Nigerians and Indians than British nationals. Approximately 1.5 million jobs have been created since just before the pandemic, with 488,000 filled by Indian workers, 279,000 by Nigerians, and 257,000 by UK citizens, as indicated by data from HMRC.

Rachel Reeves, elected with a pledge to achieve the fastest growth among advanced economies in the G7, has emphasised the need for further support in helping people secure employment. She stated, "If you can work, you should be working." Reeves plans to address this in her upcoming budget, involving difficult decisions on spending, welfare, and taxes to stabilise the economy's foundations.

Liz Kendall, the Work and Pensions Secretary, acknowledged the severity of the situation and attributed it to the previous government's failure to provide the necessary support for people to obtain and progress in employment.

However, the Conservative business spokesperson, Kevin Hollinrake, expressed scepticism about Labour's capacity to increase employment, criticising their business agenda for potentially undermining these efforts.

Earlier this year, the Tories outlined plans to reform disability benefits, including advising individuals with "mild" mental health issues to receive therapy and return to work. Although Labour supports the principle that those capable of working should do so, mental health advocates expressed concerns about the potential impact of the Tories' approach on people with disabilities.

Labour's workers' rights initiative entails granting employees the right to work from home, access to sick pay, and protection from unfair dismissal from day one while also outlawing "exploitative" zero-hours contracts.

The Institute of Directors recently highlighted companies' ongoing struggle to recruit staff. Alexandra Hall-Chen of the IoD emphasised the need for cautious consideration of the Employment Rights Bill's introduction to avoid placing additional burdens on employers.

James Cockett of the Chartered Institute of Personnel and Development urged the government to consult with businesses to ensure that proposed changes in workers' rights do not impede the flexibility of the labour market.

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