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6 images showing employment, building sites and people in employment for believe housing and social science enterprise lab report

A new study highlights that economic inactivity is driven by deep-rooted structural and social barriers, rather than a lack of willingness to work.

The report argues that addressing these challenges requires sustained collaboration between government, industry, and wider society.

Understanding the causes of inactivity

The research examines the high levels of economic inactivity in County Durham, UK, where one in four working-age adults are currently out of employment.

According to the Office for National Statistics, the region’s inactivity rate stands at 26.6%, significantly above the UK average of 20.9%.

The study involved Business School researchers Dr Sanne Elbrink, Dr Cat Spellman and Dr Lee Wainwright, alongside Joanne McGrath from the Department of Sociology.

It was delivered through the University’s Social Science Enterprise Lab in partnership with believe housing, one of the North East’s largest housing associations.

Through co-creation workshops, the team explored how health inequalities, fragmented support systems, stigma, limited education opportunities, and digital exclusion interact to restrict people’s ability to access work.

Key barriers identified included hidden hardships, low confidence, limited literacy or digital skills, and a lack of tailored services.

A human-centred, place-based response

The research team stresses that meaningful change will not come from funding or sanctions alone.

Instead, the report calls for a joined-up and flexible approach that recognises economic inactivity as a shared challenge rather than an individual shortcoming.

The study argues that a place-based model offers an effective way to connect people with work, volunteering, or training

Five pathways for progress

Drawing on insights from the workshops, the researchers have created five pathways that can guide organisations seeking to support economically inactive people:

  1. Developing holistic, accessible services.
  2. Nurturing volunteering opportunities.
  3. Creating inclusive work options.
  4. Designing enabling policies.
  5. Establishing cultural change.

Together, these pathways provide a practical framework for housing associations, employers, volunteer groups, and policymakers aiming to reduce economic inactivity.

Local and national impact

The findings will inform new interventions within believe housing, which will be tested and refined with potential for wider sector adoption.

Nationally, the report encourages greater collaboration across County Durham and beyond to support those facing vulnerable employment or unstable housing.

The project was funded by Durham University’s Smart & Scale programme, supporting the growth of small and medium-sized enterprises across the North East.

The programme team notes that the work could help more people enter the workforce while enabling regional SMEs (small and medium enterprises) to scale effective interventions.

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