The Demoralising State of the UK Job Market: What is making it collapse?
There I was, writing another cover letter for a job of minimum wage. Morale withering and in despair for landing a job. Like any other normal person, I had decided to doomscroll on TikTok and behold – videos of the UK job market and how employers are caught with their pants down. From the state of the comments, I had finally felt that I was not in this alone full-time job (looking for a full-time job), an absolute breath of fresh air – and a detrimental thought to be having, knowing that many individuals are also in the same position.
This article will focus on those seeking employment and why it is so tough for them to land a job, even if it may be minimum wage. It will also focus broadly on the UK in terms of the economy, and why those that cannot get a job is so detrimental, potentially leading to a death spiral. As well as the economy, a poor environment in the workplace is also leading to dissatisfaction from the workers themselves.
The Job’s Taken – But go ahead and apply anyway
According to the Office of National Statistics (January to March 2025), the UK unemployment rate (for those 16 and over) stands at 4.5% and the economic inactivity rate sits at 36.5%. Those between 16 and 64, it sits at 4.6% unemployment and 21.5% economically inactive. What is classed as economic inactivity is as follows: not seeking employment (not currently holding a job – including zero hours), not seeking work (not actively searching in the past 4 weeks) and no availability to start a job within the next 2 weeks.
What stands out most to me is those who do not currently hold a job, although actively looking for work. This strikes me as peculiar because as someone that is in employment – and actively seeking a new job – along with a plethora of job listings being posted, why cannot anyone seeking employment seem to get a job? Be it even a basic entry-level. Of course, as I opened with this article, employers have been caught with their pants down and this sentiment rings true across the board, especially for those whom desperately seek new roles and wish to provide value in society, towards their families and even for themselves.
Do not get me wrong here – employers are actively looking for employees. However, by the time the job has been posted on boards such as Indeed or LinkedIn, they have already chosen someone behind closed doors who had information prior to the job being listed. Employers are looking after their own in this regard. By law they do have to post the job publicly and go through various CVs in case another candidate has cropped up that could be a better match for the role – this is rarely the case if they have already chosen from inside.
Paretos Law – How at least 20% of the people not working is immensely detrimental for the British public.
Vilfredo Pareto, a 19th-century Italian polymath, introduced the famous 80/20 principle, which many of us know from self-improvement circles intellectually masturbate to – the idea that roughly 20% of effort can lead to 80% of results.
This principle applies far beyond personal productivity – it can be seen in business, economics, and even nature. On a societal level, having 20% or more of the population economically inactive is a massive strain on the British economy. It means a smaller group of people must carry the weight of most of the nation’s productivity, which isn’t just inefficient – it is completely unsustainable.
Economically, when over a fifth of the working-age population is inactive, several damaging effects occur:
Lower GDP growth: Fewer people working means less overall economic output, slowing growth and reducing the country’s global competitiveness.
Increased fiscal pressure: Governments must spend more on benefits and social support, driving up public debt or forcing cuts in other essential services.
Widening inequality: Economic inactivity often correlates with poverty and social exclusion, creating a bigger divide between those with secure jobs and those without.
Reduced consumer spending: Inactive individuals tend to have less disposable income, which lowers demand for goods and services, further stalling business growth.
Labour shortages and skill gaps: With fewer people working, businesses struggle to fill roles, especially skilled ones, which can hamper innovation and efficiency.
Sadly, this situation is often worsened by unclear job requirements, unfair recruitment practices, and corporate jargon that alienate potential workers rather than support them.
Issues with minimum wage and entry requirements
The introduction of the National Minimum Wage by Tony Blair in April 1999 – legislated through the National Minimum Wage Act of 1998 – marked a significant step toward reducing poverty and ensuring that young people received fair compensation at the start of their careers. While this policy represented a clear social benefit, many corporations initially viewed it as a constraint due to the imposition of a universal pay standard. Over time, however, as the workforce evolved and younger generations assumed a more prominent role, businesses adapted – often by using the minimum wage as a cost-saving measure, effectively placing employees in roles with limited prospects for growth or progression.
The stagnation in job progression – where roles offer little room for growth or change – has been compounded by the rising barriers to entry for new opportunities. Increasingly, employers list stringent requirements, such as several years of experience, for roles that were once considered entry-level or easily transferable. This shift disproportionately benefits internal candidates who have already been informally performing the role, often without recognition or fair compensation. For external applicants, this creates an uneven playing field – no matter how capable or driven they may be, they are excluded from the outset. It erodes the principle of merit-based hiring and reinforces a cycle where opportunity is determined not by potential, but by proximity and prior access.
No, Gen Z isn’t the problem - we simply refuse to be exploited. We see through the corporate veil that big business tries to hide behind.
Without veering into ideological extremes, the Zoomer generation is more attuned to how the workplace operates. We’ve come of age in an unstable economy and know better than to put all our eggs in one basket – because that basket almost always breaks. While it’s easy to blame previous generations, like the boomers, they were often puppets under big business themselves. The real responsibility lies with corporations and government policies – particularly those from the Thatcher era – that deregulated industries, weakened unions, and prioritized market freedom over worker protections. These shifts laid the groundwork for today’s precarious job market and growing inequality.
Consider these facts: A study of 3,000 UK workers aged 16–25 revealed over 90% felt they were treated unfairly at work due to their age—being undervalued (81%), patronised (78%), or overlooked for promotion (69%). That’s not paranoia; it’s lived experience.
Oli Mould, professor at Royal Holloway, writing in The Guardian: “The constant message from potential employers to be competitive, entrepreneurial and flexible has failed quite spectacularly … jobs vanish as quickly as they appear, benefits are slashed, exploitation is rife, and career paths … have crumbled.” theguardian.com
Gen Z’s “realism” isn’t pessimism – it is a rational response to a system that repeatedly breaks promises. We value flexibility, transparency, and respect – and that’s the shift big business can’t – or shouldn’t – ignore.
Unfortunately, us Britons are in a time of great socio-economic uphevel. People are feeling betrayed not only by their government, but the industries and businesses they very much need to provide an income. Real lasting change cannot solely be based on ‘growth’ - whatever the government thinks that looks like. It is time for employers to be held accountable and to be honest with the public about what they need in a role. Not only will this benefit people in getting a fitting, worthwhile role, but also support and bolster the UK economy.
Sources:
Office for National Statistics (ONS). Economic inactivity in the UK: detailed breakdowns by age, gender, and reasons. ons.gov.uk
Mould, Oli. The Guardian. “The constant message from potential employers…”. theguardian.com
News10. Survey of UK workers aged 16–25 on workplace fairness and age discrimination.
News18. Study on NEETs and youth inactivity in the UK.
The Sun. “We cannot keep footing the bill for jobless Britain.” thesun.co.uk
The Sun. “Millions of unemployed Brits will LOSE benefits if they refuse jobs.” thesun.co.uk
The Sun. “Britain's benefits crisis is crippling our economy and fuelling mass…” thesun.co.uk