When an individual of working age is not in employment and not looking for job opportunities, they are said to be economically inactive.
Economic inactivity is a significant challenge across the UK and in the South Yorkshire region. In Sheffield, there is estimated to be more than 99,000 residents that are economically inactive, as of June 2024.
Reasons for economic inactivity could include long-term sickness or a health condition, having to take care of a family member or loved one, early retirement, homelessness or personal choice. Sheffield sees a higher than average economic inactivity among young people who have exited the education system and among residents from ethnic minority communities.
The Department for Work and Pensions (DWP) have announced £10m in funding for the South Yorkshire region, via the South Yorkshire Mayoral Combined Authority, to help reduce economic inactivity while stimulating job creation.
This will boost economic growth, improve social cohesion and expand the life prospects of local residents.
£3m of this funding has been allocated to Sheffield, and in an Economic Development and Skills Committee meeting on Thursday 6 February, the funding was accepted by the local authority.
The funds will be used to deliver the Pathways to Work programme, which will offer tailored support to inspire people to enter, or re-enter, employment, and help overcome any personal or circumstantial barriers to the job market.
Pathways to Work will feature significant partnership work with local employers to create jobs that are accessible and appealing to residents now seeking employment.
“To support our ambitions for the growth in the city we must also support our residents in finding good, secure and sustainable employment.
“This funding is welcomed to help us deliver the Pathways to Work programme and support Sheffield residents, help them to thrive and improve their life prospects.”
Councillor Martin Smith, Chair of the Economic Development and Skill Committee at Sheffield City Council
The funding will enable Sheffield City Council’s Employment, Skills and Economy services to engage with more than 2000 economically inactive residents and progress more than 800 local people into paid employment in 2025-26.
It will also allow for investment to develop the infrastructure for long-term reduction in economic inactivity.
The service will also engage with the Voluntary and Community Sector within the city to provide a network of citywide employment support services, where residents can access one-to-one keyworker support in trusted community locations.