The Recent Decline in United Kingdom Labor Force Participation: Causes and Potential Remedies
Selected Issues Papers, July 13, 2023
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- The Recent Decline in United Kingdom Labor Force Participation: Causes and Potential Remedies
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Bibliographic details
- Authors: Gloria Li, Carlos Mulas-Granados
- Published: July 13, 2023
- Series: Selected Issues Papers
- DOI: https://doi.org/10.5089/9798400248528.018
Summary and principal findings
- The paper studies the puzzling decline in labor force participation observed in the UK following the pandemic.
- Retirement and long-term sickness appear to be the main drivers of the decline.
- Chronic illness remains a lingering distinctive factor vis-a-vis peer countries.
- The government has recently adopted a battery of measures to increase labor force participation, but additional actions are warranted.
Drivers of the decline
- Retirement:
- Identified as one of the main drivers of lower labor force participation after the pandemic.
- Long-term sickness:
- Identified as one of the main drivers.
- Chronic illness is highlighted as a distinctive factor relative to peer countries.
Policy recommendations and potential remedies
- Improve health outcomes to reduce inactivity linked to long-term sickness and chronic illness.
- Increase participation of the long-term sick and the disabled.
- Keep older workers in the labor force (address retirement-related exits).
- Increase female labor force participation.
- Improve the skills and productivity of both domestic and foreign workers who join the workforce.
Publication and metadata
- Authors: Gloria Li, Carlos Mulas-Granados
- Date: July 13, 2023
- Pages: 15
- Volume: 2023
- Issue: 051
- Series: Selected Issues Paper No. 2023/051
- DOI: https://doi.org/10.5089/9798400248528.018
- Stock No: SIPEA2023051
- ISBN: 9798400248528
- ISSN: 2958-7875
Summary derived from "The Recent Decline in United Kingdom Labor Force Participation: Causes and Potential Remedies" (Selected Issues Papers) by Gloria Li and Carlos Mulas-Granados, July 13, 2023.
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- Sipea2023051