On Tuesday, the UK’s Labour Party unveiled its “Get Britain Working” plan to address long-standing issues in the labor market, including high inactivity among working-age people. As part of this initiative, the party launched a new Labour Market Advisory Board, which will provide expert advice to reduce economic inactivity and support the government’s goal of reaching an 80% employment rate.

Paul Gregg, chair of the advisory board, highlighted the challenges facing the UK’s job market, including a rise in long-term sickness and economic inactivity, particularly among young people since the COVID-19 pandemic. “Reversing these trends will be key to ensuring the long-term prosperity of the UK’s labor market,” Gregg said, pointing to the significant suppression of real wage growth over the past 15 years, which has impacted living standards and reduced tax revenues.

Britain’s economic recovery from the pandemic has lagged behind other major economies. According to mid-2024 figures, 9.4 million working-age individuals were not engaged in employment or job searches. Of those, 2.8 million were out of work due to long-term sickness, a problem the government attributes partly to long wait times in the National Health Service.

The Labour Party, in power since July, plans to overhaul job centers and devolve more employment-related powers to local areas as part of broader reforms set for this autumn. Labor market data, expected later in the day, is anticipated to show strong employment growth alongside a moderation in wage increases in July.