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1、Turning the tide on economic inactivity:Retaining talent and skills in the workforce March 20252Turning the tide on economic inactivityForeword 3Executive Summary 41 The UKs escalating challenge of inactivity 6 Considering leaving work has gone mainstream 6 A handbrake on economic growth 7 The facto

2、rs driving people to leave work 8 The barriers to re-entering work 10 The missing piece of the puzzle:slowing the exit rate from work 12 Windows of opportunity:leaving work is not a foregone conclusion 13 Employers are reconsidering their approach to workplace support 162 A way forward 18 Areas for

3、further consideration and focus 19 Additional perspectives 19Contacts 21ContentsForewordIf economic growth is the Governments number one mission,skills and productivity are the key drivers.To build homes,roads and runways,or make breakthroughs in technology,we need a skilled,active and growing workf

4、orce.Yet the UK has an excessive number of adults who are neither in work nor actively looking for work,eclipsing the number of unemployed by six to one.As well as a major societal problem,economic inactivity acts as a constant handbrake on growth.While the issue is rightly attracting strong attenti

5、on,understanding of how to tackle it is weak.A key focus has been on getting those people outside the workforce into work.Just as important,however,is stemming the flow of people leaving the workforce in the first place.This outflow has risen more sharply than the rate of returns to work,driving hig

6、her overall levels of inactivity.Like all employers,PwC has good reason to prevent worklessness.We need skilled workers,and we need them to thrive.We want to understand what drives people to leave the workforce,particularly those under the age of 35,and want to share and contrast our perspective wit

7、h that of businesses across the UK.To this end,our research has given us access to the views and ideas of more than 4,000 people and 350 businesses.They have revealed some hard truths.Businesses told us they are wary of recruiting people who have been out of the workforce for a long time-with skills

8、 and experience gaps being a particular concern.But it is equally true that businesses want to stop talented workers from leaving.However,often they do not realise an employee is on the path to inactivity until it is too late.Had they been alert to the problem,they could have stepped in and potentia

9、lly kept a valued employee in productive work.It is clear that the earlier the intervention,the easier,less costly and more effective it is likely to be.From the employees perspective,we find that individuals rarely decide to become inactive for good.Many say the right interventions at the right tim

10、e could have made all the difference.But once they are out of work,confidence wanes,and a short period too often becomes an indefinite one.Given that outflows from work to inactivity currently show no sign of abating,we see a significant opportunity for businesses,government and other organisations,

11、centrally and locally,to work together to address the problem.Some 80%of the businesses we spoke to said economic inactivity was impacting productivity and they were already reconsidering the support they provide.The prize for ensuring these efforts are channelled in the most constructive way will b

12、e substantial.Marco Amitrano Senior Partner of PwC UKThere is a significant opportunity for businesses,government and other organisations,centrally and locally,to work together to address the problem of economic inactivity.”3Turning the tide on economic inactivityWith that in mind,PwC commissioned a

13、nd undertook research to better understand the problem and to explore where new solutions might be found.We have heard from more than 4,000 people through interviews and surveys as well as several hundred senior business leaders from larger employers and SMEs.This brought together three perspectives

14、:employers,those in work and thinking of leaving,and those who have already left work.Understanding the challenge and opportunity from each of these perspectives will help us find a new approach to allow individuals and businesses to thrive.Our findings revealed four key themes:Executive SummaryThe

15、level of economic inactivity in the UK presents a major challenge.Since late 2019,the number of people neither working nor looking for work has increased by roughly 12,000 a month net.A new approach is needed.This is being driven by employees leaving the workforce.One-in-ten workers are actively con

16、sidering leaving work.This equates to 4.4m workers who are on the brink of leaving the labour market.A further 19%of workers say that in the past 12 months they have seriously considered leaving work for an extended period.Younger workers aged 18-24 are particularly at risk,with mental health a majo

17、r driver.12Nearly nine out of ten businesses report being concerned about the rise in economic inactivity.In addition,81%of businesses say their productivity has been impacted,while 73%say the issue is affecting financial performance.This is aside from the broader impacts to public finances and the

18、economy,such as through lower tax receipts and higher public spending.While there is no universal pathway to leaving work,our research shows there are several windows of opportunity to provide more support for people before they decide to leave.While for some people a sudden event or diagnosis drive

19、s their decision,our findings show that,for most,the timeline is longer and more gradual.During that time,a significant number of people never ask for or receive support.This suggests that a concerted effort by business and government to intervene earlier and address the underlying factors driving p

20、eople to leave work,could make a real difference.Employers see inactivity as a risk to talent they value.Encouragingly,more than half(54%)of employers are reconsidering or have reconsidered the support they have in place to prevent their employees leaving work.While there is desire to prevent work e

21、xits,over half of businesses admit being worried about recruiting people who are already inactive,with skills gaps a key concern.This highlights the importance of prevention the Government should work with employers to give as much attention to reducing the flow of employees into economic inactivity

22、 as they are to supporting the people currently inactive into work.Economic inactivity in the UK may well rise further.Businesses are increasingly worried.There is an opportunity to reduce exits from work.Businesses want to do more to prevent work exits into inactivity.344Turning the tide on economi

23、c inactivityExecutive SummaryPhase 1:Initial in-depth online interviews with different groups,including people currently in work and those currently economically inactive.Given the growing focus on inactivity among young people,we focused on a cohort of under 35 year olds.We also conducted interview

24、s with senior representatives from businesses,including SMEs.Collectively,these more than 300 interviews provided insights into the perceptions and thinking around economic inactivity,and refined the hypotheses we intended to test in Phase 2.Focaldata used its AI-powered depth interview tool,FDChat,

25、to conduct the interviews.The platform uses a trained AI moderator to conduct 30 minute conversations with individual participants based on a set of interview objectives.Individuals were aware they were talking to a chatbot and agreed to the approach before the interview began.For discussions on sen

26、sitive topics,like health and family,evidence suggests that well-moderated AI interviews can offer some individuals the space to be more candid and transparent.The approach also enabled a far larger number of interviews to be conducted compared to traditional approaches.Research approachPwC commissi

27、oned Focaldata to conduct research on attitudes to work,and experiences of leaving and re-entering the workforce.Our report identifies and elaborates on two key areas for further focus and consideration:Phase 2:A representative survey conducted among the working-age population(18-64)in the United Ki

28、ngdom,with responses from 4,404 individuals.Fieldwork was conducted between the 9th and 19th January 2025.Separately,PwC surveyed 311 business leaders,including C-suite executives,HR directors,managing directors and operations directors,covering large employers and SMEs.Keeping people engaged,health

29、y and resilient at work Build a prevention-first approach into workplace design and culture:Health support better integrated into other aspects of business.Improved communication,peer group,and other social network support.Greater focus on development and skills.Employers and government to work toge

30、ther on prevention-first approach for example,through a Good Employer Charter.Ensure workers have access to high quality,confidential support:Government to consider offering assistance to SMEs.Explore wider use of third-party providers.Better mechanisms to identify those at risk early:Improved commu

31、nication and support for absent employees which focuses on return to work.1Faster intervention and support 25Turning the tide on economic inactivity1:The UKs inactivity challenge The UKs rate of economic inactivity has surged since the Covid-19 pandemic,with approximately 21.5%of UK adults out of th

32、e workforce and not seeking a role.1Considering leaving work has gone mainstreamThere is a risk inactivity levels will rise again,with our research indicating that a significant proportion of working adults are close to becoming economically inactive:10%are currently actively considering leaving wor

33、k,not just their current role,a figure which is equally high for both men and women.This is equivalent to approximately 4.4 million workers.2 A further 19%of workers have seriously considered leaving work for an extended period of time in the past 12 months.Younger workers are particularly at risk,w

34、ith 37%of those aged 18-24 saying they have either seriously considered leaving work in the last year or are actively considering doing so now.This is a broad trend across the workforce:these results are consistent across different levels of income,education,commuting time,and across regions.This is

35、 echoed by the nearly two-thirds(63%)of businesses which report an increase in employees leaving the workforce over the past two years.Nearly two-thirds of businesses report an increase in employees leaving the workforce over the past two years63%While the rate has declined from its peak last year,i

36、nactivity levels among younger people(below age 35)have proved more stubborn,with an increasing proportion of those out of work due to long-term sickness.Internationally,the UK remains the only G7 country with fewer people in work now than before the pandemic.Concern about economic inactivity has pr

37、eviously tended to focus on the very large number of people who have left,or never entered,the workforce.Our research has focused on the growing problem of the flow of people exiting work-that is the rate at which people are leaving the workforce.6Turning the tide on economic inactivity1 Economic in

38、activity is defined as people aged 16-64 not in employment who have not been seeking work within the last 4 weeks and/or are unable to start work within the next 2 weeks(Office for National Statistics).2 UK labour market statistics,18 February 2025.Base:Respondents concerned about economic inactivit

39、y.N=281.Note:rounded figures have been used.Share of businesses reporting impact of economic inactivityThe cost of economic inactivity to UK growth is becoming increasingly clear.With constraints on international migration and an ageing workforce,levels of participation in the labour market have a d

40、irect impact on growth.To date,there are 700,000 more inactive people of working age compared to pre-pandemic levels.Assuming historic contribution levels,reintegrating these individuals back into the workforce could boost economic activity by an added 29 billion,in 2024 price terms.The rise in econ

41、omic inactivity also compounds pressure on the public finances,through lower tax receipts and increased spending on welfare and public services.In response,there are growing efforts to tackle the challenge and support more people back into work.The Governments Get Britain Working White Paper publish

42、ed in November 2024 explored how employers and policymakers can support workforce retention and re-entry,particularly for those with health conditions.This has been followed up by the ongoing Keep Britain Working Review,which is examining the potential role of employers to support individuals around

43、 health and disability.Locally,mayoral combined authorities and local authorities are stepping up to address the underlying causes of economic inactivity.However,as recognised in the landmark 2024 Pathways to Work report by Barnsley Council,the system is fragmented and often individuals are left to

44、navigate a web of support which is too complex to access.Our research shows economic inactivity has become a very real concern for businesses,with nine out of ten employers concerned about the issue.This is driven by the growing effect of inactivity on their operations,with 81%of employers saying pr

45、oductivity has been impacted.A particular worry is the loss of skills and talent,with 79%of businesses reporting either a moderate or significant impact from the loss of key talent,and a similar proportion(77%)saying that the UKs overall rate of inactivity is making it harder to access the skills an

46、d talent their business needs.Over three-quarters(83%)say the issue is affecting financial performance due to the cost of staff departures and re-recruitment.A handbrake on economic growth Businesses increasingly concerned 100%50%0%Key:No impactMinimal impactModerately impactedSignificantly impacted

47、Access to skills and talentLoss of key talentOverall productivityFinancial cost of staff leaving and having to re-recruit42%35%40%39%46%35%43%40%7Turning the tide on economic inactivityThe factors behind the rise in economic inactivity are various and complex,and often there is no one single reason.

48、Among those individuals who were in work and left,there is a wide range of factors which led to that decision although it is increasingly clear that ill-health,both physical and mental,is a major driver.This is mirrored in our research,where individuals who are economically inactive are 3 percentage

49、 points more likely to be on a waiting list to see a medical practitioner compared with someone in work.Similarly,among those who have considered leaving work in the past 12 months,concerns with my mental health was the single most cited factor.For people currently considering leaving work for an ex

50、tended period,we found that concerns with mental health are a major concern,alongside frustrations with“unfulfilling work”.Among those under age 35,mental health is the more important factor of the two.Indeed,people aged 18-24 are 40%more likely to cite concerns with mental health compared with olde

51、r respondents.The factors driving people to leave work Factors impacting risk of leaving work at the moment,by ageBase:Respondents currently considering leaving work.N=310.(“Thinking about why you are considering leaving work at the moment,which of the following factors most influenced your desire t

52、o leave work?”)People aged 18-24 are 40%more likely to cite concerns with mental health compared with older respondents 40%Total18-2425-3435-4445-4455-6435%38%24%35%43%39%Unfulfilling workAge32%42%34%27%30%29%Concerns with my mental health30%29%22%38%27%37%Lack of career growth28%30%22%29%35%23%Poor

53、 workplace culture27%37%33%33%18%19%Financial difficulties16%6%13%21%21%12%Poor relationship with colleagues14%10%17%14%14%15%Concerns with my physical health12%17%25%13%3%0%Neurodivergence10%15%12%7%10%9%Transport difficulties10%7%9%8%11%15%Caregiving responsibilities9%9%15%10%7%0%Parenting respons

54、ibilities8Turning the tide on economic inactivityIn their own words When I was going through a rough time due to doing a lot of shifts and having unreliable staff,they my work were very supportive and gave me the breathing space and flexibility I needed to not become completely burned out”20 year-ol

55、d male East of England My employer was really lovely,she was really kind when I went on sick leave I was planning to go back,but she wasnt very receptive to my suggestion to start back part-time.I think I mightve gone back if shed considered that.”23 year-old female North East England In our intervi

56、ews,we heard that making work more flexible even for a limited period-was something people felt would make a big difference in allowing them to stay in work.This is reflected in our larger survey.Interestingly,flexibility and/or adjustments to working hours,are prioritised far more by people than re

57、mote working.But in practice,staggering or reducing hours remains relatively uncommon,with only slightly more than one-third(36%)of the employers we surveyed having done so.9Turning the tide on economic inactivityWe found that many more people who are currently inactive would be interested in return

58、ing to full-time or part-time work than not(54%compared to 25%)provided the necessary support for their family/caring responsibilities,or their health conditions,was available.Among those are inactive,the most frequently requested forms of support are flexible working arrangements and support for me

59、ntal health.But the most significant major barriers to returning to work are not just practical people are also worried about their self-esteem and the perceived difficulty of finding a suitable job.The barriers to re-entering workBarriers to returning to work(individuals not currently in work,exclu

60、ding students and retirees)In their own words I think my main barriers are lack of experience,as well as confidence.Ive recently been looking into getting back into work Ive been doing courses that will allow me to become a teaching assistant.I joined an agency who got me set up with a school and ar

61、ranged a trial day,but the night before I didnt sleep and all I could do was cry,so I cancelled it.I feel like my anxiety is still too bad.”23 year-old female North East England100%75%50%25%0%Low self-esteemKey:Major barrierNeutralMinor barrierDont knowMental healthDifficulty finding jobsPhysical co

62、ndition or disabilityTreatment of diagnosis or a health conditionLack of qualifications or skills relevant to avaiable jobsFinancial disincentives to work (eg benefits would be reduced or lost)TransportCaring responsibilitiesPossible bias in the workplaceNeurodiver-genceLack of access to affordable

63、care66%10%65%21%51%23%57%54%10%41%33%28%41%17%30%45%31%36%45%34%42%39%34%17%7%7%6%14%12%10%25%8%11%15%12%14%14%12%9%14%38%17%13%11%14%14%26%9%10Turning the tide on economic inactivityThe main obstacles I see right now are trying to get some sort of confidence back to feel ready for it and finding a

64、way to physically prepare by re-learning some skills I may have lost.”24 year-old male Scotland The main barrier is my lack of confidence,anxiety and just not knowing how I go about looking for work,not knowing what I need to do to apply for a job and not knowing what I do in an interview.”33 year-o

65、ld male West Midlands Although many businesses have successfully supported employees returning to work,a quarter of surveyed businesses have never done so.Over half(57%)admit worry about hiring someone who has been inactive.The main obstacles are applicants perceived lack of skills and education(21%

66、),expectations for flexibility(16%),and the need to accommodate mental health needs(14%).Additionally,nearly two-thirds report being unable to support employees with complex health needs.There is also a notable split between larger employers and SMEs,with the latter much more likely to indicate that

67、 they are not confident in being able to meet the needs and requests of prospective employees seeking support.11Turning the tide on economic inactivityTo date,the response to inactivity has largely focused on supporting people who have left work to return,which is undoubtedly an essential piece of t

68、he puzzle.However,equal focus should be placed on reducing the number of people leaving work.Indeed,analysis by the Office for Budget Responsibility(OBR)shows that the rate of exits from the workforce is growing faster than the rate of people returning to work,driving the higher overall rate of inac

69、tivity.3 There is also a significant advantage in reducing preventable exits from the workforce,because it can become harder for people to return to work after extended periods,as skills and confidence decline,alongside a rise in anxiety about returning to the workplace.Notably,our research found th

70、at of those currently inactive:More than 58%had been out of work for longer than 2 years.A similar number(59%)have not accessed any support since leaving their previous job,likely making re-entry more difficult.Only a quarter(25%)express no interest in returning to work,even if appropriate support w

71、as available.So while supporting people back into work is at the heart of reducing the UKs level of inactivity,slowing the rate of exits from the workforce is an important and so far under-explored part of resolving this complex challenge.A combination of both approaches is likely to be most success

72、ful,minimising the risk that achievements in supporting more people back to work are offset by growing numbers of new departures from the workforce.The missing piece of the puzzle:slowing the exit rate from work Business appetite to prevent exits The opportunity to stem the flow of exits from work i

73、s corroborated by our research among employers.We found that a majority(57%)of businesses are wary about hiring someone who has been economically inactive,with skills and experience gaps a key concern.At the same time,as many as a third of employers associate the concept of economic inactivity with

74、people“gaming the system”.However,a similar proportion(31%)of employers associate economic inactivity with a risk to talent they value.Moreover,85%of businesses believe they have a role to play in supporting employees to remain in the workforce,and as we explore further in our report,many are consid

75、ering how best to do this.There is a significant opportunity to develop a new approach to the challenge,to the benefit of both the economy and individual businesses.4 OBR,Why has working-age inactivity risen since the pandemic?(2023).12Turning the tide on economic inactivityIn their own words Our re

76、search examined the different pathways for people leaving work.There is no single experience,but two factors strongly suggest leaving work is often not a foregone conclusion:Just under a third of(now inactive)people considered leaving work for more than six months before taking the decision to leave

77、 work.Almost half did not reach out for any support prior to taking the decision to leave work.Both of these findings suggest there are windows of opportunity to intervene and support a significant proportion of those considering leaving work and so potentially reduce the rate of exits.Timelines For

78、 a large minority(34%),leaving work was unanticipated.This is often the result of a major health issue or a sudden change in family circumstances.But a majority of those who became inactive(51%)described their journey as gradual.This was a recurring theme in our interviews with people who had left w

79、ork,with a common story of challenges particularly mental health building up over time before becoming too much.Windows of opportunity:leaving work is not a foregone conclusion It happened gradually my condition started off manageable with my workload at my job,but the condition slowly began taking

80、over my life and mind,it weakened my body and was all I could seem to think of when I wasnt too tired to even think at all.”24 year-old female East of EnglandThe main reasons for me leaving work was my health,and as time went on my health got worse and still worsens.”28 year-old femaleWales13Economi

81、c inactivityThe gradual shift to inactivity is also evident in the period of time people spend considering leaving work and before choosing to do so.While a large minority did not anticipate becoming inactive,nearly one-third spent between six months and three years or more considering doing so.This

82、 raises the question of whether the right interventions at the right time could persuade people to reconsider before the underlying factors accumulate or crystallise into a decision to leave.The gradual decision period is particularly true for young people and those in the middle of their working li

83、ves:between the ages of 25 and 44 there is a broad split between those who spent longer than six months considering leaving work than those who did not anticipate doing so,indicating an opportunity for early intervention.(Among those 45 years old and above,there is marked increase in unanticipated e

84、xits from work.)Given a significant number of people who become economically inactive struggle to re-enter the workforce,preventing more people from leaving work at an early stage of their lives is a major opportunity.Time spent considering leaving work before doing soBase:Respondents who are econom

85、ically inactive.N=420 40.0%35.0%30.0%25.0%20.0%15.0%10.0%5.0%0.0%I did not anticipate becoming inactiveLess than 6 months before becoming inactiveBetween 1 and 3 years before becoming inactiveBetween 6 months and 1 year before becoming inactiveI dont knowMore than 3 years before becoming inactive26.

86、7%12.4%8.6%7.5%11.4%11.3%Time spent considering leaving work before doing so,by age50.0%40.0%30.0%20.0%10.0%0.0%18-2425-3445-5435-4455-64Base:Respondents who are economically inactive.N=420 Key:I did not anticipate becoming inactiveI dont knowMore than 6 monthsLess than 6 months32%40%36%35%32%14Turn

87、ing the tide on economic inactivityBy their own admission,almost half(42%)of those who left work permanently did not speak to anyone at home or at work to ask for support.Among those who did reach out for support,the largest proportion asked family and friends(33%)for help.In contrast,much smaller n

88、umbers spoke with their line manager(17%)or with the human resources team(11%).This is echoed by employers,where a significant proportion almost one-in-five(19%)said the first time they realised someone was going to leave was when the person handed in their notice.Not every circumstance will necessa

89、rily have a solution which could allow someone to stay in work.However,looking back,only 39%of those who had taken the decision to leave said that there was nothing their employer could have done to help them stay in work.This underlines a major opportunity to intervene earlier and provide more supp

90、ort to people before a final decision is made.Seeking and accessing support In their own words I never spoke to my employer about my mental health until it was too late.If Id spoken to them,they may have been able to support me.”23 year-old maleNorthern IrelandA colleague took sick leave due to her

91、mental health and that is when the support came flooding.I was more in the pre-emptive stageI got the support from my team supervision.”28 year-old femaleWest Midlands15Turning the tide on economic inactivityIn our interviews,we found that embarrassment and a lack of confidence are holding back some

92、 employees from making the most of what support is currently available.In their own words I was made aware of some resources we supposedly had,such as telehealth.However,I felt too intimidated and embarrassed to ask for them.”24 year-old female East of EnglandGiven this wide range of experiences of

93、employees receiving support from their employers,we wanted to understand more deeply the perspective from businesses.Our research found that the vast majority(83%)of employers responding to our surveys offer health and wellbeing support for employees,with the most common forms being employee helplin

94、es and access to counselling.Digital services such as health tech apps and access to virtual GP appointments are also relatively common.Employers are reconsidering their approach to workplace supportHowever,encouraging more people to ask for support will not be the whole answer.Nearly half(45%)of th

95、ose who spoke with their employer before leaving work reported that they were offered no support.Share of employers currently offering employee support70%60%50%40%30%20%10%0%Employee assistance/supportBase:All respondents who offer a support system.N=257 Access to counsellingPrivate medical insuranc

96、eTransport subsidiesGym membershipVirtual GP appointmentsHeath tech appsPhysio/rehabilitation67%66%56%55%46%45%44%42%16Turning the tide on economic inactivityof larger employers currently offer access to counselling79%There is an understandable difference between larger and smaller employers.SMEs wi

97、th under 250 staff were significantly more likely to say they do not currently,or plan to,offer many of the forms of support offered by their larger counterparts.For instance,79%of larger employers currently offer access to counselling,a figure which drops to 37%amongst SMEs and with 47%of smaller e

98、mployers reporting no plan to offer this in the future.That said,overall,the rise in economic inactivity is prompting more employers to reconsider their approach.More than half(54%)report that the issue has already led them to change,or consider changing,their existing support offer.A further 23%say

99、 they expect to do so later this year.To help identify the most promising interventions,we asked employers who had seen employees become inactive recently,what might have been done differently to accommodate their needs and keep them in work.The actions most frequently cited were:increasing awarenes

100、s of mental health and support across the workforce(61%);adaptations to the workplace(55%)and greater flexible working provisions(52%).However,particularly in our interviews with SMEs,we identified a potential mismatch between what employers think would help and what individuals say they need.Across

101、 several interviews,businesses cited generic employee benefits(such as company car schemes and loans),rather than support specifically designed to help those at risk of becoming economically inactive.More fundamentally,many employers are worried about the cost and resource implications of providing

102、support.More than 60%said they believe businesses lack the necessary resources to support individuals with complex needs.And among the businesses which dont currently have or plan to offer support,the most cited barriers are the overall cost of support(27%)and resource limitations(21%).17Turning the

103、 tide on economic inactivity2:A way forwardFor most people,leaving the workforce is a gradual decision.Work perceived to be unfulfilling and lacking purpose can contribute to mental health challenges and the decision-making process.Employers can therefore play a key role in preventing exits by keepi

104、ng workers engaged,motivated,healthy and resilient a prevention-first approach.Many employers offer,on paper,comprehensive health support,but it can feel removed from other aspects of business.Workplace design and culture needs to better reflect the intersections between factors including:social int

105、eractions and communication at work,skills,confidence,fulfilling work,managing stress and physical and mental health.This does not all demand additional financial investment but it does require a change in approach.Relatively simple steps can make a big difference for example,building peer group and

106、 other internal social networks to give people greater support and a sense of belonging.Employers and government can work together to ensure this shift.This could take a variety of forms,including a Good Employer Charter,with an independently awarded kite mark,of the kind recommended in the report f

107、rom the Pathways to Work Commission.This would involve employers,including public sector organisations,making a public commitment to achieve the highest standards in relation to workforce retention and wellbeing.1Keeping people engaged,healthy and resilient at work Our research highlights an importa

108、nt opportunity to help stem the flow of workers into inactivity.This is as critical for the economy as helping people back into the workforce.Drawing on the findings,together with our experience as an employer and our advisory work in this area,we have identified key areas for further consideration

109、and attention.Our research highlights a clear opportunity to help stem work exits into inactivity.Once people are considering leaving the workforce,there is a window of opportunity to prevent them doing so.To capitalise on this window,employers need to be able to spot the warning signs more quickly,

110、ensure relevant services are signposted,and that necessary adjustments can be made promptly.Employers say that current processes do not allow them to identify who may be considering leaving,but more than half want to improve what they are doing.There is an opportunity to improve awareness and educat

111、ion about key warning signs and triggers,while introducing better systems and mechanisms to capture concerns and ensure the right people are alerted.Employees worry about the stigma of accessing support,and when they do ask for help,half are let down and receive no response.All employees need high q

112、uality,confidential access to support.Small businesses tell us that this is sometimes unaffordable.The Government could consider offering assistance to SMEs who often cannot afford to invest in health and wellbeing programmes,of the kind that are common in larger organisations.The opportunity for sm

113、aller businesses to access third-party services of this kind,at favourable rates,could make a significant contribution to stemming the flow of workers into economic inactivity.At the same time,larger organisations need to continue to invest in occupational health and check the support provided is de

114、livering as intended.Once employees are off work for a prolonged period,there can be a loss of connection with employers.There can also be uncertainty over where the responsibility for contacting people who are unwell lies.People will often rely on their GP,or remain on NHS waiting lists who certify

115、 fit notes.However,practice among healthcare providers varies widely,and while some providers go above and beyond to support people to return to work,we know that many are not focused on employability.Every fit note for a prolonged period of absence should be accompanied by a return-to-work plan.The

116、re is the opportunity to explore how large employers,or the health sector can support this,ensuring targeted support and better communication between the individual,the employer and healthcare providers.2Faster in-work intervention and support18Turning the tide on economic inactivityAdditional persp

117、ectivesEnsuring people have the skills and mindset to flourish Phillippa OConnor,Chief People Officer at PwC UK Coming through loud and clear in our research is the bearing confidence has on job satisfaction and broader wellbeing.When confidence is knocked,it can have a spiralling effect,making peop

118、le question their abilities and dissuading them from trying new things.Confidence at work is underpinned by many things,but one of the most significant factors and one that employers and educators can influence is having the skills to flourish.If people start a job with the right skills,they are far

119、 more likely to feel confident and perform well in their role.With technology evolving the world of work at lightning speed,skills requirements are also changing.Its not surprising people are feeling less confident at work and less confident about the future.The Government has pledged to bring toget

120、her the fractured skills landscape and create a shared national ambition to boost the nations skills.Ensuring such reform progresses at pace,and that the business community is plugged in systematically,will be key.Skills also need to be better matched to jobs.At the point of recruitment there needs

121、to be clarity on the skills required-PwCs own recruitment focuses on skills and potential,with our own aptitude tests rather than evaluating people by past performance alone.As importantly,learning and skills development needs to continue within jobs and throughout careers.This isnt all about extra

122、training programmes,but ensuring people know their skillset and where there are gaps and want to learn new skills and try new opportunities.This should increase peoples agility and adaptability,and in turn their resilience,as well as making careers more satisfying.”19Turning the tide on economic ina

123、ctivityBlocking the road to inactivity:Building better communication and resilience within the workplace Brian Dow,Chief Executive of Mental Health UK,PwC Foundation national charitySecure employment is a pillar of good mental health,and many people experiencing mental illness can thrive at work,pro

124、viding the right support is in place.However,too many face stigma and a lack of understanding,making it difficult to stay in work or return after a period of ill healthWe know that poor mental health is fuelling economic inactivity in the UK,yet many employers feel unsure about how to support staff

125、who are struggling with mental illness.Workplace mental health training can equip leaders and managers with the confidence to recognise when someone may be experiencing mental ill-health,start meaningful conversations,and put measures in place to help them stay in work.These measures might include r

126、easonable adjustments such as reduced or flexible hours;developing Wellbeing Action Plans which identify someones trigger points and protective factors;or signposting them to further support for mental health.This will help provide employees with the security,confidence and opportunity to build resi

127、lience,so they can stay in work.“Open communication is key,because issues cant be addressed if they are not known or discussed.Yet our Burnout Report 2025 recently identified that many people do not feel comfortable opening up to line managers about stress or high workloads,particularly young people

128、,the demographic which is most at risk of dropping out of the workforce due to poor mental health.Trust is earned,and employers must build a culture where staff feel they can be open about their mental health,and that they will be supported if they disclose challenges in this area.Otherwise,people w

129、ill continue to suffer in silence and drop out of the workforce suddenly,with support provided being too little,too late.20Turning the tide on economic inactivityContactsKatie JohnstonPartner,Government and Health IRena BrownDirector,Government and Health IBarret KupelianChief EAlastair Woods Partner,W21Turning the tide on economic inactivitypwc.co.uk 2025 PricewaterhouseCoopers LLP.All rights reserved.PwC refers to the UK member firm,and may sometimes refer to the PwC network.Each member firm is a separate legal entity.Please see for further details.RITM0180813