HC Deb 05 February 2004 vol 417 c1005W
Mr. George Osborne

To ask the Chancellor of the Exchequer what recent estimate he has made of the total cost to the economy of economic inactivity. [152935]

Ruth Kelly

The performance of the UK labour market over recent years has been strong by both international and historical standards. In 2002 the standardised inactivity rate for persons aged 15–64 was 23.4 per cent. for the United Kingdom, well below the EU average of 30.2 per cent.

Sharp declines in the unemployment rate have boosted UK GDP growth, and a falling inactivity rate would increase labour supply and add further to the growth rate of the UK economy. That is why this Government attach priority to reducing the inactivity rate. In addition to helping the unemployed back to work, and increasing the skills of the lowest skilled workers, Government policies aim to encourage inactive people who are able to work back into the labour market.

Mr. George Osborne

To ask the Chancellor of the Exchequer if he will make a statement on the major causes of economic inactivity. [152936]

Ruth Kelly

The Government have published an analysis of the extent and causes of inactivity and unemployment, and of the policies in place to address them, in "Full employment in every region" (HM Treasury/Department of Work and Pensions, December 2003).