Economic Inactivity
- Most forms of economic inactivity are not labour market failure
- g. people looking after family and home have chosen to do so and are providing a key service, and a rise in the number of full-time students will likely help the economy in the long run
- Discouraged workers and people classified as long-term sick or disabled, but are still capable to do some work, represent a waste of resources and a burden to tax payers
- Getting these people into the labour force would increase aggregate supply, and increase their income.