One in four young people considering quitting work, new data reveals
Employees under the age of 35 were more likely than their older counterparts to exit the workforce because of mental health challenges.
One in four young people have considered leaving the workforce in the past year, with mental health cited as the most common factor.
New data from PwC further revealed that 10% of all workers have actively considered leaving for an extended period.
The survey of more than 4,000 employees from 300 companies within the UK suggests a further 20% of workers of all ages have considered leaving in the past year.
Employees under the age of 35 were more likely than their older counterparts to exit the workforce because of mental health challenges.
Economic inactivity, which measures people not seeking work or available to work, hit a record 9.4 million last year- about 22% of working-age adults.
According to the Office of National Statistics (ONS), the number of job vacancies pulled back once again, down 9,000 to 819,000 in the three months to January.
The UK unemployment rate remained at 4.4% in the three months to December, although at the time the ONS reiterated caution over the statistic due to an overhaul of the nation’s jobs survey.
PwC data reported nine in 10 employers were worried about economic inactivity, with over half seeing an increase in employees leaving the workplace.
Marco Amitrano, senior partner of PwC UK said businesses were “understandably concerned” about the impacts of productivity and financial performance.
“Much of the current conversation focuses on how to get people outside the workforce back in, equally important is stemming the flow leaving the workforce in the first place,” he said.
“Our research shows the path from work to inactivity is not set in stone.
“With 54% of employers actively reconsidering further support to prevent inactivity, it’s vital this support is channelled in the most effective way. Guardrails to prevent inactivity need to be part of the framework for UK growth.”
More than half of businesses reported concerns about recruiting someone who has been inactive, while more than a third linked inactivity with people “gaming the system”.
Among the inactive respondents surveyed, 43% said they would be interested in returning to work full-time or part-time, and 31% were not.
It comes amid Prime Minister Sir Keir Starmer’s plans to overhaul the benefits system.
The number of people in England and Wales claiming either sickness or disability benefits has increased from 2.8 million to about 4 million since 2019.
The benefits bill has risen with this increase, hitting £48 billion in 2023-24.
It is forecast to soar to £67 billion in 2029-30.
Katie Johnston, PwC’s local and devolved government leader, said getting people back into the workforce needed close collaboration with businesses and all levels of government.
“If we are serious about reducing economic inactivity and contributing to the Government’s ambition of economic growth, then we need joined-up action not only helping people back into work, but more importantly stemming the flow of people out of the work,” she said.
Almost 60% of inactive people said their employers could have done something more to help keep them at work, while a significant number reached out to no one at all.
The most common barriers to employment aside from long-term mental health conditions were long-term physical conditions and low self-confidence.
Businesses reported the biggest barriers to people returning to the workforce are skills and education gaps, alongside expectations around flexibility and the ability to accommodate mental and physical needs.
