Bank governor warns over sick and ageing workforce

Weak economic growth and a drop in workforce numbers are posing an “acute challenge” to Britain, Bank of England governor Andrew Bailey has said.

- ALBERT TOTH

An ageing workforce coupled with a rise in the number of people defined as “long-term sick” means the UK’s productivity is suffering, he told a gathering of fiscal policymakers in Wyoming.

According to official data, the percentage of 16- to 64-year-olds who are economically active in Britain has dropped since the Covid pandemic, making the country an outlier among advanced economies. Mr Bailey added that it is a “very concerning development” that mental health has become the most common reason for inactivity.

There were caveats to this data, he said, such as a low response rate and a higher chance that economically inactive participants would take part.