Sir Charlie Mayfield, the government's employment tsar, has urged politicians to prioritize addressing Britain's long-term sickness absence culture as a means to invigorate the UK economy, suggesting this path holds greater immediate promise than rejoining the European Union.
Mayfield, who led the government's 'Keep Britain Working' review, stated that a mere 1% increase in employment numbers could significantly bolster the national workforce, equating to the addition of a city's worth of workers. This perspective comes at a time when recent data indicates a contraction in the UK's private sector for the second consecutive month in June, with businesses facing cost pressures exacerbated by global events and domestic policies.
The timing of Mayfield's remarks coincides with political shifts, as Andy Burnham reportedly nears a potential leadership role, a scenario that could intensify pressure for closer ties with Europe, with proponents arguing it would benefit the economy. However, a segment of the business community, including some who initially opposed Brexit, remains hesitant about reopening the debate on EU membership.
Rain Newton-Smith, chief executive of the Confederation of British Industry (CBI), conveyed to the Financial Times that businesses are not seeking to relitigate the Brexit referendum and that leaders she consults with do not wish to revisit that discussion. Sir Charlie highlighted the scale of the issue, describing long-term sickness absence as a "a quiet but urgent crisis."
According to figures cited by Mayfield, approximately three million of the UK's 35 million workers are economically inactive due to long-term illness. He posited that increasing the employed population by 1% would add nearly 350,000 individuals to the workforce. "We have got an opportunity to drive growth sitting right in front of us and actually it's a very attainable opportunity," he remarked, emphasizing that this goal does not necessitate rejoining the EU, constructing new housing, altering immigration routes, or awaiting a new cohort of young workers. Instead, he stressed the need to engage employers and reinforce with employees their responsibility towards maintaining their health.
Sir Charlie's earlier report detailed that the number of people out of work due to health problems has increased by 800,000 since 2019, with projections suggesting a further rise of 600,000 by 2030. The report also estimated that a 22-year-old who becomes unable to work due to health issues could lose over £1 million in lifetime earnings compared to someone in sustained employment. The economic inactivity stemming from ill health is estimated to cost the UK £212 billion annually and is on the rise. A recent poll by the Work Foundation indicated that 62% of surveyed employers are observing persistent levels of health-related departures from the workforce.