REC comments on new research on rise in sickness-related inactivity

Commenting on Resolution Foundation research finding Britain is in the midst of the longest sustained rise in sickness-related inactivity since the 1990s, Shazia Ejaz, REC’s Director of Campaigns and Research, said:

“One thing all parties are agreed on is the need for economic growth. They should also all be clear that an effective labour market is central to achieving that. Our own research suggests a continued failure to overcome labour shortages will cost the economy up to £39 billion every year - just short of two whole Elizabeth Lines – in less GDP and productivity. So, the inactivity problem needs to be addressed with urgency.

“ONS figures tell us that the NHS waiting lists are a big factor for why not enough people are well enough to work. Making sure the NHS can be effectively staffed to deliver is a big part of the solution to drive down waiting lists and get people well. A better partnership approach to staffing with agencies is a clear lever for improving things because we know NHS doctors and nurses want more flexibility in how they work.

“However, the issue of flexible working goes further than this. Agency working is central to offering older workers a flexible way back into employment and for others including young people. It allows people to juggle health and other commitments such as caring responsibilities. This coupled with better infrastructure around transport, childcare and social care will all help tackle the inactivity challenge the UK faces. A comprehensive review of how to get the labour market working effectively should be at the heart of any growth plan and labour market experts such as recruiters are ready to do the work with government on this.”

Ends

Notes to editors:

REC Overcoming Shortages report – 2022.
In this report, we show exactly how much damage could be done if we don’t step up. With a 10% surge in demand for staff across the economy, and the labour market restricted by shortages, we could see a 1.2% fall in expected GDP and productivity by 2027 – costing the economy anywhere between £30 billion and £39 billion every year. This figure is just short of the entire current defence budget, or two whole Elizabeth Lines.

To view the Resolution Foundation press release ‘Britain is in the midst of the longest sustained rise in sickness-related inactivity since the 1990s’, contact Emma.Beale@resolutionfoundation.org

Click here to view all REC press releases and for more information and interview enquiries, contact the REC Press Office on 020 7009 2157, 020 7009 2129 or pressoffice@rec.uk.com. Outside of regular office hours, please call 07702 568 829.

The REC is the voice of the recruitment industry, speaking up for great recruiters. We drive standards and empower recruitment businesses to build better futures for great candidates and themselves. We are champions of an industry which is fundamental to the strength of the UK economy.

Find out more about the Recruitment & Employment Confederation at www.rec.uk.com.