Sir Keir Starmer urged to 'get a grip' of workshy Britain - as nearly 10 million Brits are out of work but not looking for a job despite companies struggling to hire staff

Labour was under mounting pressure last night to tackle the worklessness crisis – as figures showed 9.4million Britons are neither in a job or looking for one.

This represents more than a fifth of the working-age population and includes a near-record figure for those signed off with long-term sickness.

The issue is a major headache for Chancellor Rachel Reeves because employers cannot find the staff they need – making it harder for the economy to grow.

Ms Reeves yesterday pledged to take action in her autumn Budget, declaring ‘if you can work, you should work’.

But last night the Tories said Labour’s workers’ rights policy would undermine those efforts ‘by making it harder and more expensive for firms to employ people’.

The number of those classed as ‘economically inactive’ stood at 9.4million in the three months to June, or 22.2 per cent of 16 to 64-year-olds, according to the Office for National Statistics. It is up by 350,000 on the same period last year and has risen by a million since the start of the pandemic. The number has remained stubbornly high over recent months, at levels last seen more than 12 years ago.

It includes those off work due to long-term sickness, which is at a near-record 2.803million, as well as students, at 2.56million, and those classed as looking after family or home, at 1.728million.

A further 228,000 are described as being off with temporary sickness while 1.062million have taken retirement before the age of 65.

Some 27,000 are described as ‘discouraged workers’ meaning they are not looking for work because no jobs are available.

An additional 1.001million are off for other reasons, including those awaiting the results of a job application and those who have not yet started looking for work or do not need or want employment. Government figures recently indicated that Nigerians and Indians have filled more vacancies than British nationals since 2019.

Around 1.5 million jobs have been created since shortly before the pandemic. Of those, 488,000 were filed by Indian workers and 279,000 by Nigerians, while 257,000 were taken by UK citizens, the HMRC data showed.

Ms Reeves – elected on a pledge to achieve the fastest growth in the G7 group of advanced economies – said yesterday: ‘Today’s figures show there is more to do in supporting people into employment because if you can work, you should work.

‘This will be part of my Budget later in the year where I will be making difficult decisions on spending, welfare and tax to fix the foundations of our economy.’

Work and Pensions Secretary Liz Kendall admitted the situation was ‘dire’, blaming the previous government ‘with millions of people denied the support they need to get work and get on at work’.

However, Kevin Hollinrake, Conservative business spokesman, said: ‘Labour talks a good game on getting more people into work, but their own business agenda will deliver the exact opposite.’ He said Labour’s workers’ rights plan, which the Tories have branded a ‘unions’ charter’, would ‘tie business up in red tape’, damaging competitiveness and drowning small businesses in regulation.

Earlier this year the Tories announced plans to overhaul disability benefits which included telling individuals with ‘mild’ mental health problems to get therapy and return to work.

Sir Keir Starmer said at the time that he supported reform and ‘the principle that those that can work should work’ but mental health campaigners said the Tory stance threatened incomes of the disabled.

Labour’s workers’ rights programme will grant staff the right to work from home, access to sick pay and protection from unfair dismissal from day one in the job, while ‘exploitative’ zero-hours contracts will be banned.

Yesterday, the Institute of Directors said companies were still struggling to find staff. Alexandra Hall-Chen at the IoD, said: ‘The Government will need to proceed carefully over the introduction of the Employment Rights Bill to ensure that it does not add further burden for employers.’

James Cockett at the Chartered Institute of Personnel and Development, said ministers must consult business ‘to ensure planned changes to workers’ rights don’t undermine the flexibility of the labour market’.