A recent report discovered that the number of individuals leaving the workforce due to long-term health issues has reached its highest level since the 1990s. The report, conducted by the Resolution Foundation, indicated that the number of adults who were economically inactive because of ill health increased from 2.1 million people in July 2019 to a peak of 2.8 million in October 2023. This rise, according to the Foundation, is the “longest sustained rise” since records began in 1994-1998.
The report indicated that the age spectrum’s extremes had the highest proportion of individuals out of work due to long-term health issues. Younger and older individuals account for nine-tenths of the increase in overall economic inactivity, which could seriously impact standards of living and career paths, says Louise Murphy, senior economist at the Resolution Foundation.
Despite the UK government’s recent budget measures to improve the workforce by 300,000 workers, the country remains the only G7 economy to have not returned to its pre-pandemic employment rate, as per the Foundation. However, the good news is that the inactivity figures did fall slightly to 2.7 million in December 2023. The Foundation noted that the upward trend in long-term sickness began before the pandemic in the summer of 2019 and has continued for the past 54 months.
The Foundation’s report used figures from the Office for National Statistics and the Department of Work and Pensions and showed a 68% rise in claims for PIP (Personal Independence Payment), the non-means tested benefit for health issues. New PIP claims in the age range of 16-17 years increased by 138%, the report added. The report warned that wider strains on the NHS and welfare spending may result if the nation’s health and economic inactivity are not improved.
In November, Chancellor Jeremy Hunt announced plans to get 200,000 more people into work by implementing reforms that included stricter fit-to-work tests and jobseeker support under the government’s work capability assessment plan. In addition, the government aims to spend £1.3bn over the next five years to aid almost 700,000 people with health issues in finding jobs, as per the Chancellor’s comments in November. Shazia Ejaz at the Recruitment and Employment Federation recommended improving infrastructure around transport, social care, and childcare to tackle the inactivity challenge that the UK faces
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