More than 7.4m people born in Britain are inactive – a rise of 604,000 since the pandemic.
For those born overseas, the increase has been a more modest 104,000, taking the total to 1.7m – a rise mostly accounted for by more overseas students studying here. (The number of students of all nationalities has risen by 344,000 to almost 2.5m since the pandemic.)
Just over 33.3m people were in work in the three months to September, above the pre-pandemic peak of 33m.
Pay growth slowed slightly over the period, with regular weekly earnings up 4.8pc compared to the same period last year. That was the weakest growth in more than two years, with almost identical increases in the public and private sectors.
Including bonuses, total pay was up by 4.3pc.
Average wages grew by 2.7pc once inflation is factored in, representing a boost to living standards.
Liz Kendall MP, the Work and Pensions Secretary, said: “2.8m people – a near record number – are locked out of work due to poor health. This is bad for people, bad for businesses and it’s holding our economy back.
“That’s why our Get Britain Working plan will bring forward the biggest reforms to employment support in a generation, backed by an additional £240m of investment.
“And while it’s encouraging to see real pay growth this month, more needs to be done to improve living standards too. So, from April next year over 3m of the lowest-paid workers will benefit from our increase to the National Living Wage, delivering a £1,400 a year pay rise for a full-time worker.”
