The head of Britain’s largest private employer has issued a chilling verdict on the nation's economy. Ashwin Prasad, CEO of Tesco UK, has warned that the country is "sleepwalking into a quiet epidemic" of joblessness, accusing the government of merely "tinkering at the edges" while millions languish on benefits.

This intervention from corporate royalty is a seismic jolt to the political establishment. Prasad's diagnosis is not based on abstract theory but on the brutal reality of the labor market he navigates daily. With unemployment hitting a four-year high of 5.1 percent and over nine million people classed as "economically inactive," the UK is facing a structural crisis that threatens to derail any hope of economic recovery.

The Lost Generation

The statistics are damning. Nearly three million people aged 16 to 24 are neither in work nor in education—a figure that has surged by 26 percent since the pandemic. This "lost generation" is costing the taxpayer billions and sapping the economy of its future vitality. Prasad argued that the current welfare structure is incentivizing inactivity, trapping potential workers in a cycle of dependency.

"We cannot afford to be a country that lets the next generation languish on the sideline," Prasad told an audience at the Resolution Foundation. His comments strike at the heart of the government's dilemma: how to coax people back to work without dismantling the social safety net. The current strategy, according to Prasad, is failing.

• The Graduate Glut: Analysis by the Centre for Social Justice reveals that over 700,000 university graduates are out of work and claiming benefits, debunking the myth that education guarantees employment.
• The Benefit Bill: Taxpayers are spending an "ever-increasing proportion of national income" on out-of-work benefits, money that Prasad argues should be fueling investment and growth.
• The Corporate Call: Tesco’s willingness to speak out suggests that the patience of the business community is wearing thin. They need workers, and the state is failing to provide them.

A Systemic Failure

Prasad acknowledged the "myriad reasons" for the crisis, including long-term sickness and the mental health aftermath of the pandemic. However, his central thesis is undeniable: the UK's labor market is broken. The "political instability and economic uncertainty" of the last decade have created a toxic environment where work no longer pays, and inactivity is the safer option.

As the government scrambles to respond, the warning from Tesco is clear. Unless there are "bold changes" rather than minor adjustments, the UK risks becoming a low-growth, high-welfare economy, permanently sleepwalking toward decline.