UK faces increased unemployment due to health issues

Three million working-age people are unemployed in the UK due to poor mental or physical health. This number has risen by one million since the pandemic. Among them, nearly one million young people aged 16 to 24 are not in education, employment, or training. The Prime Minister has called this situation a moral and economic emergency. Many people on sickness and disability benefits want to work but need support. The UK retail sector could play a crucial role in helping them. Currently, retail employs three million people directly and an additional 2.7 million indirectly, making it the largest private-sector employer. However, the retail industry is facing significant challenges. Increases to National Insurance, the living wage, and business rates have raised costs by about £7 billion. These changes make it harder for retailers, like Currys, to hire more staff. The Employment Rights Bill may worsen the situation by requiring guaranteed hours for workers, leading to additional costs for businesses that already operate on thin profit margins. Retail companies warn that these challenges could risk up to 300,000 jobs. They argue that the government should reconsider its policies. Retailers are calling for the government to phase in National Insurance increases, cancel the business rates hike, and ease regulations. This would help businesses hire more people and potentially get Britain back to work. Retailers are eager to assist in this effort.