Labour Adviser Warns: Getting Sick Brits Back to Work is Top Economic Issue

Alan Milburn Urges Focus on Job Creation for 3 Million Inactive Workers

Alan Milburn, a top Labour adviser, has cautioned that getting sick Brits back to work is the nation's most pressing economic challenge. He emphasized that finding jobs for the nearly three million individuals must be the top priority for Prime Minister Sir Keir Starmer to ensure the country's prosperity.

Reversing Economic Inactivity: A Major Opportunity for UK, Says Milburn

Milburn highlighted that addressing the rising trend of economic inactivity presents the UK with its greatest opportunity. By reintegrating these individuals into the workforce, the economy can expand and welfare expenditures can be reduced.

Government Response and Challenges Ahead

While Work and Pensions Secretary Liz Kendall commended Milburn's report on the importance of employment for growth, Chancellor Rachel Reeves stressed the need to support people in finding work. Shadow Work and Pensions Secretary Mel Stride criticized the lack of a comprehensive plan from the government to further decrease welfare dependency.

Wage Growth and Employment Rate

Recent figures revealed a 5.4% increase in wages in the quarter ending June, although it was lower than the previous quarter. This wage growth may alleviate pressure on the Bank of England to reduce interest rates. Additionally, a slight decrease in the unemployment rate from 4.4% to 4.2% indicates a tightening labor market.