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The UK workforce will increase by just 820,000 (2.4%) by 2025 – a significant drop from recent trends that have seen the workforce grow by 9% in the 10 years up to 2015 - according to  Mercer’s Workforce Monitor.

It predicts that the overall population will increase at a faster rate than the workforce for the first time in half a century, signalling long-term changes to the economy.

An estimated 710,000 extra workers will be needed in the health and social care sector, based on there being an anticipated further two million over-65s in the UK by 2025, the report stated. Assuming this demand is met through the forecasted workforce growth, only 110,000 additional workers will be available to fill the demand of all other industries.

Age demographics in the workforce will also be impacted. Over the next eight years there will be 300,000 fewer workers under the age of 30 and one million more over-50s in the UK as a result of falling net migration and ageing Baby Boomers, the report found. London, whose economy is reliant upon young and migrant workers, will be particularly adversely affected. The report forecasts that London’s under-30s worker population will fall by 25%, while over-50s will increase by 25%.  (more…)

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