Andrew Bailey said the UK faces “acute challenges” to weak growth and reduced labor. Andrew Bailey

According to the character Bank of England Governor Andrew Bailey.

The number of people defined as the increase in the number of long-term patients, the work of young people – factors that he believes may be intertwined – increases the squeeze of aging population.

Bailey presented the need for efforts to increase economic productivity at a weekend party at Jackson Hole, Wyoming.

Bailey said the focus is on improving productivity growth. “In the foreseeable future, aging will not change.” He added that by 2040, 40% of the UK population will be over 64 years old.

He said Bank of England The focus has been shifted from the long-term trend in unemployment rates to the focus of observing the level of labor force participation.

Official data show that, unlike other advanced economies, the percentage of young people aged 16 to 64 who are active in the UK labour market is lower than the 19-year-old pandemic. Mental health is the most common cause of inactivity, which he describes as “very important about development.”

Bailey added that there are warnings around the data, including lower response rates and the likelihood of economic inactivity are more likely to participate in the official survey.

But he believes that this factor does not explain all declines. “Apart from the data warning, it’s a very sad story for the UK because … we’re at the bottom of the league table,” he said.

The government has committed to promoting labor force participation and economic growth, but earlier this year Members of Congress refuse to reform For disability benefits, some analysts say it will stop people from working.

Data for the second quarter of 2025 showed that 21% of Britons aged 16-64 were neither working nor actively seeking jobs, down from the peak of 22.2% last year and above 20.3% before the pandemic.

Reduced labor force participation is one of the reasons some Bank of England policymakers are concerned about the UK inflation rate, the highest in the G7 3.8% in July – Possible recovery of its 2% target may be slow.

The latest official data shows that despite rising tax revenues and pressure from Donald Trump, the UK’s economy is growing faster than expected in the second quarter than expected.

this National Bureau of Statistics Figures indicate growth in GDP Slow down to 0.3% The rate in the first quarter was below 0.7% in the three months to the end of June.

Although it beat urban economists to reduce the forecast speed to 0.1%, weak reading highlights the Prime Minister’s challenge, Rachel Reevesbecause she believes the option to improve the economy and increase income in the fall budget.