A recent report by the Co-op and think tank Demos highlights the economic impact of limited social mobility in the UK.
- The UK economy loses out on £19 billion annually due to insufficient social mobility in workplaces.
- Improved mobility could potentially generate £6.8 billion in yearly tax revenue, supporting education massively.
- Significant consumer and business leader support exists for initiatives promoting social mobility.
- Implementing strategies for mobility could boost private sector profits by £1.8 billion.
According to a recent report by the Co-op and think tank Demos, the UK economy is significantly hampered by a systemic failure to promote greater social mobility within the workplace. This impediment is estimated to cost the economy a substantial £19 billion in GDP growth every year. This underlines the crucial need for more inclusive workplace practices.
The report, aptly titled “The Opportunity Effect,” suggests that enhanced social mobility could result in an additional £6.8 billion in tax revenues annually. This figure translates to funding for over 170,000 teachers or nearly 884,000 school places, showcasing the profound potential benefits of addressing this issue in economic and societal terms.
Public opinion strongly favors businesses that champion social mobility. A survey conducted by the Co-op indicates that 29% of UK adults are more inclined to purchase from companies that actively promote such initiatives. This trend is even more pronounced among younger consumers aged 18-34, with over 40% expressing a preference for socially progressive businesses.
From the perspective of business leaders, the importance of social mobility is also clear. A survey of these leaders revealed that 76% believe promoting social mobility is essential for attracting and retaining talent. Furthermore, 71% concur that it positively impacts business outcomes, emphasizing a broad consensus on its strategic importance.
In terms of recommendations, the report calls for both the Government and businesses to take action. It proposes several measures, including assigning Skills England the responsibility to enhance social mobility, establishing a government-supported Better Opportunities Fund to collaborate with the private sector, and encouraging voluntary disclosure of socio-economic information by job applicants. These steps are designed to dismantle barriers and foster a more equitable economic environment.
The Co-op report underscores the need for proactive social mobility initiatives to strengthen the UK economy and business landscape.
