Workforce Impact: Record Number of Sick Individuals Exiting Jobs
A recent report by the Resolution Foundation suggests that the number of individuals leaving the workforce due to long-term sickness has reached its highest level since the 1990s. According to the foundation, the number of economically inactive adults due to ill health surged from 2.1 million in July 2019 to a peak of 2.8 million in October 2023, marking the “longest sustained rise” since records began in 1994-1998.
The government has highlighted measures from its recent Budget, estimating that these measures could increase the labor force by 300,000 workers. However, concerns persist as data from the Office for National Statistics (ONS) indicates that more than a fifth of UK adults are not actively seeking work.
The report underscores that individuals at both ends of the age spectrum constitute the highest proportion of those out of work due to ongoing illness. This trend could significantly impact individuals’ living standards and career trajectories, according to Louise Murphy, a senior economist at the Resolution Foundation.
Despite a slight decrease to 2.7 million in December 2023, the UK remains the only G7 economy yet to return to its pre-pandemic employment rate. The rise in long-term sickness began before the pandemic in the summer of 2019 and has persisted for 54 months, with the previous longest period of increasing economic inactivity due to ill health lasting 55 months from 1994 to 1998.
The Foundation’s analysis also considers Department of Work and Pension (DWP) figures, revealing a significant increase in claims for disability benefits, particularly personal independence payment (PIP). Claims for PIP rose by 68% from 2020 to 2024, with a notable 138% increase in new PIP claims among individuals aged 16-17.
The Foundation warns of broader implications on the NHS and welfare spending if steps are not taken to improve the nation’s health and reduce economic inactivity. It highlights the prevalence of mental health disorders and musculoskeletal problems among benefit claimants, underscoring the need for targeted interventions.
In response, a spokesperson for the DWP emphasized positive economic indicators and government initiatives aimed at increasing employment opportunities. Chancellor Jeremy Hunt announced reforms, including stricter fit-to-work tests and jobseeker support, to facilitate the transition of 200,000 more people into work. Plans also include the overhaul of the Work Capability Assessment and investment in programs to assist individuals with health conditions in finding employment.
The report’s findings shed light on the complex challenges surrounding long-term economic inactivity, prompting calls for comprehensive strategies to address underlying health issues and create supportive environments for workforce participation.
Comment Template