Economically Inactive covers everyone who is not in an official paid employment category.
Its just a catch all and in fact I think should be broken down into sub categories such as SAHP, Carer, Disabled/Ill, Pensioner, Unemployed, Volunteer.
It is a very imporant piece of information that Govt should take more care to record and report. It is especially important in a recession as Govt needs to know who might return to the workforce. There are some well respected economists who think the work that many of the, so called, economically inactive people actually do unpaid should be recognised in GDP.
I also think it is very important to record people as part time worker by choice or part time worker by force of circumstance.
For example in the USA the U6 data is reported alongside U3 unemployment data. The U6 data shows everyone who is unemployed, under employed, or would otherwise like to work. At present that is 17% of the popuation and almost double the official unemployment figure.
Economically inactive people often do unpaid work and would like the opportunity to work and should not be ignored or written off.
I am officially economically inactive and sometimes say retired, as BabyDubs does, but actually pay tax, contribute to the economy and society as well as bring up children.