Male Inactivity Rates in UK

Readers Question ‘Evaluate two policies which the government might adopt to reduce the male inactivity rate’

Inactivity rates implies that people have left the labour market and are not able or are unwilling to seek employment. Inactivity rates can be caused by:

• Demotivation
• Sickness

Two Policies To Reduce Inactivity Rates

1. Make It more difficult to gain sickness / long term disability benefits. It is argued that it has become too easy for the long term unemployed to be given sickness benefits. The government could introduce a scheme where those on benefits are revaluated every 12 months and given the option to take on light work. This could help reintegrate them into the labour market.

However, it can be difficult for the government to intervene. If checks are too strict people unable to work are forced into working even though it is detrimental to health; this leads to a less productive labour force.

Another solution could be to provide education and training to older people who have become demotivated and left the labour market. Better skill training could encourage people to go out and look for work again. However, this is quite expensive, takes time and may not be very satisfactory. – old people may not want to learn new skills