Ashwin Prasad, the UK chief executive of Tesco, has issued a stark warning that the United Kingdom is "sleepwalking into a quiet epidemic" of joblessness, with millions of people out of work and reliant on benefits. Speaking at an event hosted by the Resolution Foundation thinktank in London, Prasad highlighted that far fewer individuals are employed than could be, and taxpayers are increasingly funding out-of-work benefits, which he argues damages the nation's global standing.
Rising Unemployment and Economic Inactivity
Official data released last month shows the unemployment rate at a four-year high of 5.1%. Prasad noted a "clear, gradual change" over the past decade, with more people falling out of the workforce. He called for urgent collaboration between the government and businesses to address this issue, emphasizing that the UK cannot afford to let the next generation languish on the sidelines.
Alarming Statistics on Economic Inactivity
More than 9 million people aged 16 to 64 in the UK are classified as economically inactive, meaning they are not actively seeking employment or available to start work. This includes 2.9 million young people aged 16 to 24, with nearly a million not in education, employment, or training—a 26% increase from pre-pandemic levels. Analysis by the Centre for Social Justice thinktank suggests over 700,000 university graduates are out of work and claiming welfare benefits.
In December, the government announced an £820 million funding package aimed at helping more young people into work or onto learning schemes. However, Prasad argued that ministers are merely "tinkering at the edges" and must implement bold changes to effectively tackle the problem.
Root Causes and Corporate Responsibility
Prasad cited "myriad reasons" for high economic inactivity, pointing to the "incredibly challenging" circumstances faced by lower-income households over a sustained period. He attributed this to being at the "sharp end of a prolonged era of political instability and economic uncertainty."
From his perspective as a major employer, Prasad stressed that fewer people are working than could be, leading to increased spending on benefits instead of investments that could stimulate economic growth. He warned that this trend is creating a quiet epidemic that keeps millions out of work.
Tesco's Role and Controversies
Tesco, the UK's largest supermarket chain and biggest private-sector employer, has over 300,000 employees across the UK and Republic of Ireland and operates more than 5,000 stores. The company has faced criticism, such as when its group chief executive, Ken Murphy, received £9.9 million in pay and perks in 2024 during the cost of living crisis, earning over 430 times the average Tesco worker's pay.
Prasad acknowledged Tesco's "good financial health" but highlighted that the retailer has invested an extra billion pounds in wages over the past five years. He praised the retail sector as one of the best for helping people into work, offering flexible opportunities that support first-time entrants or those re-entering after breaks for childcare or caring responsibilities.
In conclusion, Prasad's warning underscores the urgent need for comprehensive strategies to combat joblessness and boost employment, calling for a shift from incremental measures to decisive action to secure the UK's economic future.
