Is the UK the ‘sick man of Europe’?
A recent report published by the Institute for Public Policy Research (IPPR) suggests that the UK is the ‘sick man of Europe’ by highlighting the country’s poor health as a significant barrier to economic growth.
Rising levels of long-term sickness
The report highlights that long-term sickness is contributing to economic activity, with around 2.8 million people currently unable to work due to health issues.
Since 2020, researchers have observed a rise in long-term sickness absences, with 900,000 more workers off sick than pre-pandemic projections suggested.
While many EU countries have seen economic inactivity fall by 2.3% on average since 2020, the UK’s has risen by 1.1%.
If trends continue at the current rate, it is estimated that the number of people unable to work due to long-term sickness will rise to 4.3 million by 2029.
The cost to productivity
The IPPR’s report estimates that the reduced workforce, and productivity losses that result from it, cost the UK economy approximately £25 billion per year. There is also a projection that sickness-related economic inactivity could leave to a reduction of £8.9 billion in annual tax revenue.
In fact, for every 13 people currently working, one person is on long-term sick leave – which makes the UK the only G7 country not to have returned to its pre-pandemic employment rate. As well as costing the UK economy billions of pounds a year, it is also generating skills shortages and harming productivity.
How can we change the UK’s poor health?
In light of the worrying statistics, the IPPR’s report calls for the new Labour government to view public health a central pillar in its economic strategy. It urges a shift towards preventative health strategies, focusing on issues that lead to poor health – namely poor working conditions, access to healthcare and lifestyle factors including diet and mental health.
Measures that have been suggested include tax breaks to organisations that support employee health, and programs to assist people with disabilities and long-term health issues in returning to work.
The government announced its historic Autumn Budget recently, and in it unveiled £240 million to accelerate the rollout of local services to help get people back into work and tackle inactivity.
However, the government also announced an increase in the National Insurance rate paid by employers, National Minimum Wage and National Living Wage, potentially putting extra strain on a significant number of businesses.
There will also be further funding for the NHS, in an effort to provide more appointments and reduce waiting lists more quickly, helping to provide people with the treatment they need.
Managing sickness absence in the workplace
For employers, managing sickness absence effectively comes with its challenges.
A lack of visibility over who’s off sick, for how long and why, can lead to more significant – but potentially avoidable – problems down the line.
Organisations are well-placed to prioritise the health and wellbeing of their people, and take a clear, streamlined approach to absence management. Take a look at our complete guide to absence tracking here.
