The UK’s ill health ‘employment gap’ is among the widest in the EU

A new report looking at workplace health for people with long-term ill health or disability in the UK, compared to 14 European nations, finds the UK is among the worst performers.

Work and health: international comparisons with the UK, is the latest in a series of reports informing the Commission for Healthier Working Lives. The Commission was established to address the growing challenges of working-age ill health and help people with health conditions to remain and thrive in the workforce.

Key findings include:

• One in five UK workers (21 per cent) report health limitations giving it one of the highest rates among working aged adults in the EU15.
• The UK’s employment gap between people with and without health limitations is among the widest in the EU15.
• The likelihood of those aged 16-24 with health limitations being out of work, more than doubled between 2018 and 2022 in the UK.
• For workers aged 55–64, the likelihood of being out of work due to ill health decreased for most EU15 countries over this period, but increased for the UK.

The report identifies three areas of specific policies and interventions from overseas which the UK could draw lessons from: ensuring healthy workplaces, helping people stay in work, and supporting people to move out of economic inactivity and back into the labour market. Successful features include more generous sick pay, making adaptations to workplaces and roles, and intervening early by ensuring job design and workplace conditions don’t worsen health in the first place.

Ensuring a healthy workforce, incentivising employers and sharing best practice

• Limiting hours worked through the Working Time Directive, has helped to prevent excessive hours and exhaustion.
• Employer incentives to improve workplace health, such as interventions focused on musculoskeletal disorders, can have a positive impact.
• Programmes targeted at specific industries, for example industry-focused initiatives encouraging employers to share good practice, can also bring improvements.

Keeping people attached to the labour market

• Occupational Health (OH) services can be effective and can help employees with health issues stay in work and facilitate their return to work. High coverage can be achieved with public and private provision models.
• In several European countries, statutory sick pay is linked to an individual’s wages, unlike the UK’s fixed-rate system. A more generous rate of sick pay would provide a more adequate income replacement for those not in work due to ill health, and ultimately incentivise employers to help workers stay in employment.

Helping people back into work

• Workplace adjustments, for example expert advice or adaptation grants can be effective if designed well.
• Employer incentives for hiring disabled workers are present in some countries, but evidence on their effectiveness is mixed: it is not clear they make a difference in reducing economic inactivity.
• Rehabilitation and workplace adjustment policies often provide active support to help workers transition back into employment after sickness absence.

The report provides insights which can help inform the recently launched review ‘Keep Britain Working‘ led by Sir Charlie Mayfield.

Jonny Gifford, IES Principal Research Fellow, said: “The UK consistently ranks poorly on the employment outcomes of people with long-term ill health. The UK’s situation has worsened post-pandemic in a way not seen in comparable European countries. There is a compelling case that the UK can and should improve how it supports people with ill health and disabilities to find and stay in good quality work. This problem has significant long-term consequences for the economy, society and individuals’ quality of life, and needs action.”

Sacha Romanovitch, Chair of the Commission for Healthier Working Lives said: “The research shows the urgent need for proactive and integrated policies which support people to stay well and in work. This will ensure people do not have to leave work in the first place due to ill health and if they do, can return quickly. Working together across business and government is key to the UK making big strides forward which will benefit people, businesses, society and the wider economy.”

The nations included in the report were: Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal, Spain, Sweden, and the United Kingdom.