The UK's unemployment crisis is a ticking time bomb, warns Tesco's CEO. With millions out of work and on benefits, the nation's largest supermarket chain's boss, Ashwin Prasad, sounds the alarm. Prasad highlights a disturbing trend: far fewer people are employed than should be, and taxpayers are footing an ever-growing bill for out-of-work benefits. The unemployment rate has hit a four-year high of 5.1%, according to official data. Prasad, who took the UK CEO role last year, notes a decade-long trend of people losing their jobs. He calls for government and business collaboration to address this issue, arguing it's damaging the UK's global reputation. Prasad emphasizes the need for bold action to get more people back to work, stating, 'We cannot afford to let the next generation languish on the sidelines.' Over 9 million people aged 16 to 64 are economically inactive, including nearly a million young people not in education, employment, or training, a 26% increase from pre-pandemic levels. Analysis by the Centre for Social Justice reveals a staggering 700,000 university graduates out of work and claiming welfare benefits. The government's response includes an £820 million funding package to support young people into work or learning schemes. Prasad acknowledges the myriad reasons for economic inactivity, citing prolonged political instability and economic uncertainty for lower-income households. However, he argues that the situation is far from ideal, stating, 'Far fewer people are at work than they could be.' This leads to a concerning outcome: an ever-increasing proportion of the national income is spent on out-of-work benefits. Prasad highlights the government's increased regulation and employer taxes, which he believes hinder businesses' ability to hire more people. Tesco, as the UK's dominant grocer and largest private-sector employer, has over 300,000 employees and 5,000 stores. Despite its financial health, Tesco has invested an extra billion pounds in wages over the past five years. Prasad concludes by emphasizing retail's role in providing flexible work opportunities, supporting people's entry into or re-entry to the workforce.
