Home / Sources / Select Committees / Economic Affairs Committee / UK labour supply
Select committee: Economic Affairs Committee

UK labour supply

Closed Opened 28 Jul 2022 Closed 8 Feb 2024

Economic Affairs Committee Inquiry on parliament.uk ↗

Inquiry scope (the committee's words)
There has been a significant reduction in the size of the UK labour force following the COVID-19 pandemic and the related restrictions on economic activity. Labour shortages are affecting a wide range of sectors and may have important economic consequences. The Economic Affairs Committee is seeking to understand the main causes of the reduction in the size of the labour force, and it will explore data on the types of people who have left the labour market. The Committee is also interested in what differences exist between labour market trends in the UK compared with those in other developed countries. Useful information Two million more women in work since 2010, as unemployment remains low (Department for Work & Pensions) Labour market overview, UK - Office for National Statistics (ons.gov.uk) - SEPTEMBER 2022

Where it stands

The inquiry is closed, opened 28 July 2022.

The committee has published 1 report, most recently 2nd Report - Where have all the workers gone? (20 December 2022) on 20 December 2022.

The government's response

Letter from the Rt Hon Mel Stride MP, Secretary of State for Work and Pensions, to the Chair of the Economic Affairs Committee (26 May 2023)

Published 15 June 2023. The deadline was 28 April 2023.

Summary written by Accountability Index from the government's response. It is not the government's own words.

The Secretary of State says the government is "wholly committed to driving down economic inactivity" and that a package of cross-government measures announced at Budget "represents the conclusion of my review".

  • The letter says the Secretary of State was tasked at the Autumn Statement with leading work across government on workforce participation.
  • The package is described as designed to help people to enter work, increase their working hours and extend their working lives, focusing on disabled people and those with health conditions, the over-50s and parents.
  • The letter states that the government "is continuing to consider how we can increase workforce participation", while now focused on delivering the package alongside existing support.

Read the government's response ↗ Report an error

Government Response from the Department of Works and Pensions to the UK labour supply inquiry (April 2023)

Published 2 May 2023.

Summary written by Accountability Index from the government's response. It is not the government's own words.

The government says it has "considered the recommendations" and, rather than responding to each in turn, sets out an "update on how we are addressing this issue", pointing mainly to measures announced at the Spring Budget 2023.

  • On health and inactivity, the government "welcomes the committee's focus" and describes Spring Budget 2023 measures including Universal Support, the WorkWell partnerships pilot and expanded Individual Placement and Support.
  • On older workers and retirement, it will "continue to use these statistics to monitor trends in retirement", noting it is "too early to determine" whether changes since 2019 are short-term or longer-term.
  • On furlough, HM Treasury and HMRC are publishing an evaluation in 2023 and, "where feasible with the available data", plan to look at the impact on inactivity.
  • On immigration, the government says it is "not currently our intention" to introduce a general route for recruitment at or near the minimum wage, and states that improving pay and conditions is the key long-term solution.

Read the government's response ↗ Report an error

Reports

All reports

Evidence

  • 8 oral evidence sessionsLatest 22 November 2022
  • 28 witnesses
All evidence

Recent activity

Meetings and visits

Reports

1 report

Oral evidence sessions

8 sessions

On smaller screens, scroll horizontally to read every column. Keyboard users can focus the table region and use the arrow keys.

Date Session and witnesses Source
22 Nov 2022
Oral evidence session
Errki Liikanen · Systemic Risk Council, Sir Paul Tucker · Bank of England 		View ↗
8 Nov 2022
Oral evidence session
Guy Opperman MP · Department for Work and Pensions, Huw Pill · Bank of England, Kevin Hollinrake MP · Department for Business and Trade, Mike Warren · Department for Business, Energy & Industrial Strategy, Ronan O'Connor · Department for Work and Pensions 		View ↗
1 Nov 2022
Oral evidence session
David Finch · The Health Foundation, John Burn Murdoch · Financial Times 		View ↗
25 Oct 2022
Oral evidence session
Eliza Forsythe · University of Illinois, Madeleine Sumption · Migration Observatory, Professor Jonathan Portes · King’s College London, Tony Wilson · Institute for Employment Studies, Werner Eichhorst · IZA 		View ↗
18 Oct 2022
Oral evidence session
Dr Kris Hamer · British Retail Consortium (BRC), Mr David Sheen · UK Hospitality, Nadra Ahmed OBE · National Care Association, Tom Bradshaw · National Farmers' Union (NFU) 		View ↗
13 Oct 2022
Oral evidence session
Hannah Slaughter · Resolution Foundation, Ian Stewart · Deloitte, Kate Shoesmith · Recruitment and Employment Confederation, Lauren Thomas · Glassdoor 		View ↗
11 Oct 2022
Oral evidence session
David Hale · Federation of Small Businesses, Jon Boys · Chartered Institute of Personnel and Development, Kate Bell · Trade Union Congress (TUC), Mike Clancy · Prospect Union 		View ↗
6 Sep 2022
Oral evidence session
David Freeman · Office for National Statistics, Mike Keoghan · Office for National Statistics 		View ↗

Who gave evidence

28 witnesses

On smaller screens, scroll horizontally to read every column. Keyboard users can focus the table region and use the arrow keys.

WitnessOrganisationSessions
David Finch · Associate Director, Healthy Lives Team The Health Foundation 1
David Freeman · Head of Labour Market and Households Office for National Statistics 1
David Hale · Head of Public Affairs Federation of Small Businesses 1
Dr Kris Hamer · Director British Retail Consortium (BRC) 1
Eliza Forsythe · School of Labor and Employment Relations University of Illinois 1
Errki Liikanen · Co-Chair Systemic Risk Council 1
Guy Opperman MP · Minister for Employment Department for Work and Pensions 1
Hannah Slaughter · Economist Resolution Foundation 1
Huw Pill · Chief Economist Bank of England 1
Ian Stewart · Chief Economist Deloitte 1
John Burn Murdoch · Chief Data Reporter Financial Times 1
Jon Boys · Labour Market Economist Chartered Institute of Personnel and Development 1
Kate Bell · Assistant General Secretary Trade Union Congress (TUC) 1
Kate Shoesmith · Deputy Chief Executive Recruitment and Employment Confederation 1
Kevin Hollinrake MP · Minister for Enteprise, Markets and Small Business Department for Business and Trade 1
Lauren Thomas · UK Economist Glassdoor 1
Madeleine Sumption · Director Migration Observatory 1
Mike Clancy · General Secretary Prospect Union 1
Mike Keoghan · Deputy National Statistician and Director General for Economic, Social and Environmental Statistics Office for National Statistics 1
Mike Warren · Official Department for Business, Energy & Industrial Strategy 1
Mr David Sheen · Public Affairs Director UK Hospitality 1
Nadra Ahmed OBE · Chairman National Care Association 1
Professor Jonathan Portes · Professor of Economics and Public Policy King’s College London 1
Ronan O'Connor · Director of Labour Markets Strategy Department for Work and Pensions 1
Sir Paul Tucker · Former Deputy Governor Bank of England 1
Tom Bradshaw · President National Farmers' Union (NFU) 1
Tony Wilson · Director Institute for Employment Studies 1
Werner Eichhorst · Coordinator of Labor Market and Social Policy in Europe IZA 1

Correspondence

14 letters

On smaller screens, scroll horizontally to read every column. Keyboard users can focus the table region and use the arrow keys.

PublishedDirectionLetter
6 Jun 2023 To committee Letter from the Rt Hon Mel Stride MP, Secretary of State for Work and Pensions to the Chair of the Economic Affairs Committee (15 May 2023)
23 May 2023 To committee Letter from the Chair of the Economics Affairs Committee to Rt Hon Mel Stride MP, Secretary of State for Work and Pensions (15 May 2023)
15 May 2023 From committee Letter to Rt Hon Mel Stride MP, Secretary of State for Work and Pensions, from the Chair of the Economic Affairs Committee (15 May 2023)
28 Feb 2023 To committee Letter from the Chair to the Office for National Statistics (27 February 2023)
28 Feb 2023 To committee Letter from the Office for National Statistics to the Chair (7 February 2023)
28 Feb 2023 To committee Letter from Huw Pill, Chief Economist at the Bank of England to the Chair (6 February 2023)
6 Dec 2022 To committee Letter from Guy Opperman MP, Minister of State at DWP, to the Chair (22 November 2022)
6 Dec 2022 To committee Letter from Huw Pill, Chief Economist at the Bank of England to the Chair (2 December 2022)
25 Nov 2022 To committee Letter from the Office for Budget Responsibility, to the Chair (8 December 2022)
3 Nov 2022 To committee Letter from the Financial Conduct Authority to the Economic Affairs Committee (29 November 2022)
3 Nov 2022 Not recorded Glassdoor follow-up data (25 October 2022)
26 Oct 2022 Not recorded Follow-up charts from CIPD to the Economic Affairs Committee (October 2022)
21 Oct 2022 To committee Letter from the Office for National Statistics to the Chair (5 October 2022)
11 Oct 2022 To committee Letter from the Office for National Statistics to the Chair (5 October 2022)

Meetings & visits

3 items

On smaller screens, scroll horizontally to read every column. Keyboard users can focus the table region and use the arrow keys.

DateTypeDetailSource
13 Dec 2022 Formal meeting (private meeting) Not recorded · Room 1, Palace of Westminster
6 Dec 2022 Formal meeting (private meeting) Not recorded · To be confirmed
15 Nov 2022 Formal meeting (private meeting) Not recorded · Room 3, Palace of Westminster