The number of workless households has reached its highest level in almost a decade, highlighting the growing challenge facing employers and policymakers as more working-age people remain outside the labour market.
New figures from the Office for National Statistics (ONS) show that 53% of local authority areas across the UK saw an increase in the proportion of households where no adult was in work during 2025. The data points to a continuing rise in economic inactivity, with long-term sickness remaining one of the biggest factors preventing people from returning to employment.
A workless household is one in which no one aged 16 or over is in employment. This includes people who are unemployed and actively looking for work, as well as those who are economically inactive because of illness, disability, caring responsibilities or other reasons.
The increase comes despite wider efforts to improve employment and skills across the UK. While unemployment has remained relatively stable, economic inactivity continues to place pressure on employers already struggling with skills shortages across sectors including healthcare, engineering, construction, logistics and social care.
According to the latest ONS data, almost four in ten people living in workless households who are economically inactive cited long-term sickness or disability as the main reason they were not working. This reflects a continuing trend that has emerged since the COVID-19 pandemic, with growing numbers of people leaving the workforce because of physical or mental health conditions.
The figures also show significant regional differences.
Inverclyde in Scotland recorded the highest proportion of workless households at 28.1%, while several areas in South Wales, including Rhondda Cynon Taf, Merthyr Tydfil and Blaenau Gwent, also recorded some of the highest levels in the UK.
The rise in workless households has implications beyond the labour market. It affects household income, child poverty, economic growth and the availability of experienced workers at a time when many employers are reporting ongoing recruitment difficulties.
The ONS recently estimated that 1.52 million children were living in workless households during the first quarter of 2026, an increase of 72,000 compared with the same period a year earlier.
Business groups have repeatedly warned that labour shortages continue to restrict growth, while employers are increasingly looking at flexible working, health support and workplace adjustments to encourage more people back into employment.
The Government has acknowledged that too many people remain locked out of work and says it is bringing forward employment reforms designed to improve opportunities, reduce inactivity and help people with health conditions re-enter the labour market.
For employers, the latest figures reinforce the importance of widening recruitment practices and removing barriers that prevent talented candidates from accessing work. Flexible working arrangements, reasonable adjustments, skills development and inclusive recruitment are expected to play an increasingly important role in helping organisations access a broader pool of talent.
As the UK continues to face demographic change and persistent skills shortages, tackling economic inactivity is likely to remain one of the biggest employment challenges facing both government and employers over the coming years.
Sources
- Office for National Statistics
- GOV.UK
- Office for National Statistics – Working and Workless Households in the UK