The Bank of England’s former chief economist says the “sandwich generation” of 35-50-year-olds will pay the bills for those who don’t work.
- Andy Haldane said they are paying the price for rising economic inactivity
The former chief economist of the Bank of England has said that the “sandwich generation” aged between 35 and 50 are paying for the decline in inactivity among older and younger people.
Andy Haldane said they were paying the price of increased economic inactivity – those not in work and not looking for work – much of it due to a dramatic rise in long-term illness.
“At the moment we have pressure among the young and pressure among the old, and it puts pressure on those in the middle,” Haldane told the Daily Telegraph.
He said it meant 35 to 50-year-olds had to shoulder a greater tax burden and take on more care responsibilities.
“The sandwich generation pays to support both young and old financially and non-financially,” Haldane added.
Andy Haldane (pictured) said he was paying the price of increased economic inactivity – those not in work and not looking for work – much of it due to a dramatic increase in long-term illnesses.
His comments come as officials grapple with the challenge of getting people back into the workforce after emigration during the pandemic.
The UK is one of a handful of advanced economies where the working population’s share of employment is below pre-Covid levels due to higher levels of economic inactivity.
According to last week’s figures, there were 8.8 million people classified as out of working life, or slightly more than a fifth of the working-age population.
Most of that was due to an increase in long-term illness, which increased by 462,000 between 2019 and 2022, partly due to the approaching retirement age. on the number of baby boomers.
Long-term illness numbers have reached record levels in recent months, rising to 2.6 million in the three months to July.
The increase in economic inactivity in the early stages of the pandemic was largely among 16- to 24-year-olds, while more recently it has been greater among 50- to 64-year-olds.
Aside from illness, reasons for economic inactivity can include early retirement or being a “discouraged worker”—someone not looking for work because they believe there isn’t one available.
Earlier this month, he told Sky News that the bank had made unfortunate mistakes that fueled inflation – printing money longer than necessary through its quantitative easing program.
Mr Haldane expressed his concern about the number of young people who are increasingly seeking help for their mental health problems and disabilities.
“We know that health and inactivity issues are very persistent,” he said.
“If you fall into ill health or become unemployed at an early age, it greatly increases your chances of having this problem throughout your life.”
Mr Haldane became known for his eye-catching views on economic trends both at the Bank of England and beyond.
Earlier this month, he told Sky News that the bank had made unfortunate mistakes that fueled inflation – printing money through its quantitative easing program for longer than necessary.