An increase in work-limiting health conditions has contributed the most to the rise in economic inactivity from 2019 to 2022., according to ONS data.
The data show that, despite the fact that the rising cost of living and job openings have partially countered the rise in economic inactivity, there has been a considerable decline in health.
Around 16.4 per cent of adults aged 16 to 64 reported having a health condition preventing them from working in 2019, up from 16.4 per cent in 2016, corresponding to 6.3 million and 6.8 million people, respectively.
Since the coronavirus pandemic, the number of people with work-restricting health issues has increased, reaching 7.5 million in 2022, or 18.1 per cent of the population aged 16 to 64.
Broadstone head of health & protection Brett Hill says: “There are an array of positive and negative factors that drive economic inactivity – from those who saved more during the pandemic and may have been able to retire earlier than expected to those who are struggling with the cost-of-living and must “unretire” to top up their income and pension pots.
“However, this research is further evidence that the deteriorating health of the nation is the primary driver of economic inactivity and is causing lasting damage to workforces up and down the country. Just this week, the labour market statistics uncovered that the number of people not working in the UK due to long-term sickness had risen to yet another new record of 2.55 million.
“With the public health service struggling in the aftermath of the pandemic, workers are finding it difficult to access the treatments that they need to make a quick recovery and return to the workforce which is pushing up economic inactivity.
“It is driving a growing business case for investment in healthcare with this issue now surging right to the top of the boardroom agenda. Chief Executives are recognising that they need to keep their staff fit and healthy to achieve growth, so we are expecting demand for private healthcare to continue to grow.”