Blasé Capital Don’t Wish to Work

Sometimes it is good for a nation where people do not wish to work. It is the easiest, and possibly the best way to reduce unemployment. Goad most of the people that it is not worthwhile to search for a job, and opt out of the race. Bingo! Joblessness will be down in a jiffy. In India, the jobs market is supported by the fact that a majority of women, and a sizable number of men do not want to work. They stay out and, hence, they are not included among the jobless. Only those who seek jobs actively, and do not get them, are technically and economically unemployed. If you tune out, the figures turn out better. But before you think that this is a typical emerging nation’s boon, or curse, however you may see it, this happens even in the developed world. In the UK, for example, the unemployment rate was down below five per cent, “partly due to fewer students looking for work while they study.”

Most experts predicted the figure to be over five per cent in the three months to February 2026. But this was not so, partly because of the reason cited earlier. More importantly, wages rose at an annual pace of 3.6 per cent, according to a media report, in the three months. On the flip side, despite the positive that the increase was higher than the inflation figure, this (wage hike) was the “weakest rate since late 2020.” There seems to be a paradox. The number of job-seekers is down, and so is unemployment. Yet, the wage increases are low. This may indicate a double-blow to the economy. People are not looking for jobs because they possibly do not expect to get one, or do not get what they want or like. Yet, there are enough seekers that allow the employers to give low increments, partly due to lower inflation. Low prospects for jobs coupled with lower chances of good salaries is a killer syndrome.

Indeed, if one looks at the figures closely, the increase in the percentage of people who are not looking for work, from 20.7 per cent to 21 per cent, or 0.3 per cent, is exactly the same as the difference between the actual joblessness, 4.9 per cent, and prediction, 5.2 per cent. Experts point that these are figures until February 2026, or before the Iran war. The subsequent rise in energy prices, as also other commodities, may impact jobs in the coming months, even if the ongoing talks between the US and Iran result in a ceasefire, or extension of temporary peace. Early estimates reveal that thanks to business disruptions, 11,000 jobs were lost in the UK in March 2026. The number of job vacancies fell to their lowest levels in five years, according to a media report, “dropping to 7,11,000 for the January to March (2026) period.” This may either imply that employers are not looking for people, or the jobs are getting filled up quite fast. Those who are desperate are willing to pick up any jobs. Those who have a cushion, like students, do not want to work.

However, one needs to add that the UK unemployment rate, which was below four per cent in 2020, rose above five per cent in 2021, obviously due to the impact of the pandemic and business closures. It dipped again below four per cent but has picked up steadily since 2022-23 to go over five per cent, before a small dip in the December 2025-February 2026 period. More importantly, some experts feel that the current situation, when the youngsters are not looking for jobs does not stem from a feeling of not needing one, but more from a state of under-confidence. It is the lack of confidence that is holding them back, which is the most important reason, followed by mental health, anxiety, and nerves. “Job searching is demoralizing,” says one. The same is true with the Indian youth. Tired of not getting a job, frustrated with the jibes at homes, and from relatives and friends, the youngster simply announces that she will focus on studies, and not work. In some cases, she may say that she is not interested in work right now. There may be cases where the individuals take strategic breaks, or enter into personal tie-ups.

There is trouble brewing on the horizon. Recently, the International Monetary Fund (IMF) predicted that the UK would be hardest hit among the advanced economies due to the Iran war and oil shock. It cut the estimates for annual GDP growth from 1.3 per cent to 0.8 per cent. This is a bummer since growth had picked up before the conflict, and was faster-than-expected 0.5 per cent in February 2026. Even the lower unemployment rate was “consistent with survey evidence suggesting hiring activity was recovering before the conflict in the Middle East.” The decisions by students not to seek work helped. But as is the case with growth, the trends in joblessness may be in for a reversal. Firms may scale down hiring in response to higher costs, and lower growths. Weak demand will translate into lower corporate profits. The first cuts during such times are on the jobs, and future hirings.