UK Workforce Being Left By Sick People At A Record Pace

The first brain-chip patient is seen playing online chess by Musk’s Neuralink.According to a survey, the number of people in the UK quitting their jobs because of long-term illness is at its highest level since the 1990s. According to the Resolution Foundation, the number of adults who were economically inactive owing to illness increased from 2.1 million in July 2019 to a peak of 2.8 million in October 2023.

The “longest sustained rise” since records began in 1994–1998 is this one.

According to the government, the recent budgetary changes are expected to add 300,000 new workers to the labour force.

The ONS reported that over 25% of adult UK citizens were not seeking for work, which is when the Foundation’s research was released.

According to the Foundation’s analysis, the proportion of people unemployed as a result of persistent sickness was highest among people at either end of the age range.

According to Louise Murphy, senior economist at the Foundation, “younger and older people together account for nine-tenths of the rise in overall economic inactivity,” which could have detrimental impacts on people’s living standards and career prospects.

The Foundation claims that because of the increase in long-term illness, the UK economy is the only one among the G7 to not have reached its pre-pandemic employment rate.

It did, however, note that inactive rates decreased somewhat to 2.7 million in December 2023.

According to the report, the rising trend in long-term illness really began in the summer of 2019—before the pandemic—and has persisted for 54 months.

It further stated that the greatest prior stretch of rising economic inactivity brought on by illness was 55 months, from 1994 to 1998.

The Foundation referred readers to Department of Work and Pension (DWP) data that represented disability benefit claims in addition to ONS information. It stated that there has been a “most striking” increase in claims for PIP, the non-means tested benefit for those with health concerns, with claims jumping by 68% between 2020 and 2024.

The age range of 16–17 had a 138% increase in new PIP claims.

According to the Foundation, “if we fail to improve the nation’s health and reduce economic inactivity, it will result in wider strains on the NHS and welfare spending.”

Additionally, it looked at DWP data on medical illnesses noted in Work Capability Assessments and found that a large number of benefit applicants mentioned musculoskeletal and mental health issues.

According to the report, 69% of claims were for mental health conditions, and 48% were connective or musculoskeletal discomfort.

“Our plan for the economy is working,” a DWP official stated. The rate of price growth, or inflation, has decreased to 3.4%, while employment has increased, the number of workers on payrolls has reached a record high, and idleness is declining.

“We’ve reduced the number of workless households by one million since 2010. Our £2.5 billion Back to Work plan will help break down barriers to work for over a million more people and our recent Budget measures are estimated to boost the labour force by an extra 300,000 workers.”

Chancellor Jeremy Hunt claimed in November that measures including tougher fit-to-work standards and jobseeker assistance will put 200,000 more people into employment in order to combat persistent economic stagnation. The government also intends to do away with the contentious Work Capability Assessment as part of those plans.

“We will reform the work capability assessment to reflect greater flexibility and availability of home working after the pandemic,” Hunt said in November. “And we will spend £1.3bn over the next five years to help nearly 700,000 people with health conditions find jobs.”

The Foundation’s most recent analysis follows its February declaration that individuals in their early 20s are more likely than those in their early 40s to be unemployed as a result of illness.

Long NHS waiting lists “are a big factor for why not enough people are well enough to work,” according to Shazia Ejaz of the recruiting and Employment Federation (REC), which represents the recruiting industry, in response to the research.

She added: “Better infrastructure around transport, childcare and social care will all help tackle the inactivity challenge the UK faces”.

(Adapted from BBC.com)



Categories: Economy & Finance, Regulations & Legal, Strategy, Uncategorized

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