Tesco Chief Warns of 'Quiet Epidemic' as UK Unemployment Hits Four-Year Peak
Ashwin Prasad, the executive responsible for running the UK arm of supermarket giant Tesco, has issued a stark warning that the country is "sleepwalking into a quiet epidemic" of joblessness. His comments come as official data released last month revealed the unemployment rate has climbed to a four-year high of 5.1 per cent, highlighting a growing economic concern.
Gradual Decline in Workforce Participation
Speaking at an event organised by the Resolution Foundation in London, Mr Prasad emphasised that there has been a "clear, gradual change" over the past decade, with increasing numbers of individuals falling out of work. He urged the government to move beyond "tinkering at the edges" of this pressing issue and implement bold reforms to help people re-enter the job market.
Mr Prasad pointed out that far fewer people are employed than could be, a perspective shaped by his role as a major employer in the UK. This shortfall, he argued, is diverting national resources away from productive investments that could stimulate economic growth.
Economic Strain on Lower-Income Families
The Tesco boss highlighted the "myriad reasons" behind economic inactivity, noting that life has been "incredibly challenging" for lower-income households. He explained that these families have borne the brunt of "a prolonged era of political instability and economic uncertainty," exacerbating the unemployment crisis.
Mr Prasad underscored the financial implications, stating that instead of funding initiatives to boost investment and growth, taxpayers are increasingly shouldering the burden of out-of-work benefits. He warned that this trend is unsustainable and risks sidelining an entire generation.
Call for Government Action
In his speech, Mr Prasad called for decisive government intervention to address the root causes of unemployment. He criticised recent hikes in employer taxes and regulatory burdens, arguing that these measures penalise businesses and hinder their ability to create more jobs.
As Tesco's largest expenditure is employee salaries and wages, any changes to these costs have a significant impact on the company's operations. Mr Prasad's remarks reflect broader concerns within the business community about the need for a more supportive economic environment to foster employment.
The warning from one of the UK's leading retail figures underscores the urgency of tackling unemployment, which now affects millions and threatens long-term economic stability.
