The UK is facing a “quiet epidemic” of joblessness, with millions of people out of work, the boss of Tesco has warned. Ashwin Prasad, chief executive of Tesco UK, said far fewer people were employed than could be, adding that taxpayers were spending “an ever increasing proportion of our national income on out-of-work benefits.” Official figures show the unemployment rate has reached a four-year high of 5.1%. Prasad warned that the government’s current measures were only “tinkering at the edges” and urged bold action to bring more people into work. Prasad made the comments at a London event hosted by the Resolution Foundation thinktank. He said over the past decade there has been a “clear, gradual change” with more people falling out of work, harming the UK’s global standing. “We cannot afford to be a country that lets the next generation languish on the sideline,” Prasad said. He called for businesses and government to collaborate on solutions to increase employment. Currently, more than 9 million people aged 16 to 64 are classed as economically inactive, meaning they are not looking for work or available to start a job. This includes 2.9 million people aged 16 to 24, with almost one million young people not in education, employment, or training—a 26% rise from pre-pandemic levels. Analysis from the Centre for Social Justice (CSJ) thinktank shows that more than 700,000 university graduates are unemployed and claiming welfare benefits. The government recently announced an £820 million funding package to support young people into work or learning schemes. Prasad said economic inactivity is driven by “myriad reasons,” with lower-income households facing long-term challenges. “Life has been incredibly challenging for these families during a prolonged era of political instability and economic uncertainty,” he said. He added that fewer people at work means more government spending on benefits instead of investment in areas that could boost economic growth. “We have been sleepwalking into a quiet epidemic that is keeping millions of people out of work,” he said. While Prasad did not specify which out-of-work benefits he was referring to, government data shows claims for health-related benefits have risen by 800,000 since 2019-20. Claims for Personal Independence Payments (PIP), which help cover costs for disabilities, are expected to double this decade. Economists caution that PIP is not an out-of-work benefit, and overall out-of-work payments have not increased substantially. Some rises are due to a higher state pension age, which shifts people who would otherwise claim a pension onto sickness benefits. Prasad’s comments highlight growing concerns about the UK’s labour market, where economic inactivity is limiting growth and putting pressure on government spending. Analysts say bold policies may be needed to increase employment levels and ensure long-term economic stability. The Tesco chief’s warning underscores the urgency of addressing structural challenges in the labour market, particularly for young people and lower-income households, as the country navigates an evolving economic landscape.