Rising Numbers of Economically Inactive Young Adults Linked to Job Search Difficulties
Recent data indicates a concerning trend in the economically inactive population,particularly among young adults. In august of this year, 2.641 million people reported being ‘at rest’ – neither employed nor actively seeking work – marking an all-time high adn a 73,000 person increase year-over-year. This figure falls within a broader economically inactive population of 16.22 million, up 9,000 from the previous August, though the overall proportion of the population aged 15 or older in this category has actually decreased slightly to 35.4%, the lowest level as 1999.
A meaningful factor driving this inactivity, especially for those aged 15 to 29, is difficulty finding suitable employment. A considerable 34.1% of young people cited “difficulty finding the job I wanted” as the reason for not working, representing a 3.3 percentage point increase from the previous year and the highest percentage recorded as August 2020, coinciding with the peak of the coronavirus outbreak. This aligns with a 17-month downward trend in the youth employment rate as of last September.
While the most common reason for being ‘at rest’ remains “not feeling well” (34.9%), the pronounced increase in job-search related inactivity among young adults is noteworthy.
Looking at desired work arrangements, 67% of those economically inactive individuals expressed a preference for full-time employment, 26.9% for part-time, and 5.9% for self-employment. Interestingly, the desire for part-time work has risen to its highest level as 2016, with 37.3% citing health reasons and 20.5% balancing work with other commitments. Though, a growing proportion – 13.2%, an all-time high – are seeking part-time work specifically as they cannot secure full-time positions.
Further indicating a lack of optimism, only 20.4% of the economically inactive population intend to seek employment or start a business within the next year, the lowest figure since 2018.
The data also reveals shifts in the non-wage worker sector (typically self-employed). The total number of non-wage workers decreased to 6.554 million, the lowest as 2007, representing 22.6% of the total employed population – also a record low. This decline is largely attributed to an aging workforce, with those aged 60 or older now comprising over 41.1% of non-wage workers, a first as data collection began. Specifically, individuals aged 70 or older account for a significant portion of this increase, rising by 52,000.
