Tackling the connection between health and work is one of the biggest employment challenges of our time. Across the UK, businesses are grappling with rising sickness absence and a growing number of people leaving the workforce due to ill-health. The scale of the issue is stark, with three million people already out of work because of long-term sickness. The result is billions in lost productivity and skills shortages that are affecting 67% of businesses. This is not just a health crisis; it is an economic one.
Businesses have a vital role to play in reversing this trend, but small and medium-sized enterprises (SMEs) will need significant support to make it happen. Unlike larger firms, many SMEs lack the resources to provide comprehensive occupational health and wellbeing services or invest in early intervention.
The good news is that solutions exist. By focusing on prevention and in-work support, we can stop people from falling out of jobs due to ill-health. Simple measures such as flexible working arrangements, mental health training for managers, and clear signposting to early help can make a huge difference. Rethinking tax incentives would also boost uptake of support.
We cannot ignore the groups most at risk. One of the cohorts worst affected is young people facing mental health barriers to work. For too many, these challenges become a permanent obstacle to employment. That is why we are calling on the Government to introduce a Kickstart-style support scheme to break down these barriers. Such a scheme would give businesses the confidence to hire and support young people with long-term conditions, helping them to build sustainable careers.
This recommendation is part of a wider package set out in our latest report, Growth Through People: Making Health Work. The report contains 16 practical proposals designed to create a healthier, more resilient workforce. From reforming the fit-note system to incentivising employer investment in health, these measures would deliver real change for businesses and employees alike.
The message is clear: a healthy workforce is essential for growth. By working together, Government and business can turn the tide on economic inactivity, unlock new talent pools, and strengthen the foundations of our economy.