A quarter of young employees in the UK have considered leaving their jobs in the past year, with mental health challenges cited as the leading cause, according to new research from PwC. The data highlights growing concerns over economic inactivity, with employers struggling to retain staff and address workplace well-being.
A survey of over 4,000 employees across 300 companies found that younger workers—those under 35—were significantly more likely than their older counterparts to contemplate leaving the workforce. The findings come as businesses and policymakers debate how best to support employees amid an evolving labour market.
Rising Economic Inactivity Raises Concerns for Businesses
The UK’s economic inactivity rate—measuring those not seeking or available for work—hit 9.4 million people last year, accounting for 22% of working-age adults, according to The Independent, citing data from the Office for National Statistics (ONS).
While the unemployment rate remained at 4.4% in late 2023, job vacancies have declined, with 819,000 open positions recorded in the three months to January.
The research also found that 10% of all employees have seriously considered taking an extended break from work. Meanwhile, 20% of workers across all age groups admitted to contemplating leaving their roles in the past year.
According to PwC UK senior partner Marco Amitrano, businesses are increasingly concerned about productivity losses linked to staff departures. “Much of the current conversation focuses on how to get people outside the workforce back in. Equally important is stemming the flow of people leaving in the first place,” he said.
The impact extends beyond recruitment challenges, with over half of surveyed businesses reporting a rise in resignations. Additionally, more than one-third of employers suggested that some individuals might be “gaming the system” when it comes to economic inactivity.
Mental Health and Workplace Support Under Scrutiny
Mental health conditions emerged as the primary reason for younger employees considering leaving their jobs. Alongside long-term physical conditions and low self-confidence, these issues represent some of the most significant barriers to workforce participation.
Among those classified as inactive, 43% expressed interest in returning to work on either a full-time or part-time basis, while 31% were not considering a return. Despite this, nearly 60% of inactive individuals believed their employers could have done more to retain them.
Katie Johnston, PwC’s local and devolved government leader, stressed the importance of businesses and policymakers working together to address economic inactivity.
“If we are serious about reducing economic inactivity and contributing to the Government’s ambition of economic growth, then we need joined-up action not only helping people back into work, but more importantly stemming the flow of people out of the work,” she said.
With 54% of employers actively reconsidering support measures, attention is now turning to how businesses can improve workplace conditions. The most commonly cited challenges include skills gaps, education levels, and employer flexibility in accommodating mental and physical health needs.
