One in 17 (6%) UK workers thought they might leave their job in the next 12 months due to their health, a survey by the Work Foundation at Lancaster University found.
One in five workers said they were in poor health, and these workers were twice as likely to think they would not be in employment in three years.
Nearly a quarter of workers aged 16 to 24 rated their mental health as poor, and 34% said their job made their mental health worse.
Two in five workers in this age group expected their health to get worse in the next year, and 43% were worried declining health could push them out of work in future.
Ben Harrison, director of the work foundation at Lancaster University, said: “This new analysis suggests that without additional support, we could see a new generation scarred by unemployment and economic inactivity in the early years of their working lives.
“This could have major implications for communities, employers and local economies across the UK.
“Similar risks can also be observed for those on low incomes and those already in poor health.”
Harrison added: “Without a national reset on health and work that expands access to flexible working, occupational health services and tailored employment support, many more workers could potentially leave work early due to ill health.
“This will provide a direct challenge to the Government’s ambition to grow the economy and boost living standards.”
Workers on low incomes, defined as earning less than £25,000, had poorer job quality and less support than those on higher incomes.
Only 53% of low-income workers could take paid time off for medical appointments, compared to 79% of high-income workers.
Just 46% of low-income employees felt confident taking sick leave, compared to 74% of high-income workers.
Only 16% of high-income workers said their employer did not provide occupational health services, compared to 42% of low-income workers.
People already in poor health had less access to supportive workplace policies.
Just 27% of those in poor health had flexibility over their work location, compared to 53% of healthy workers.
Only 44% had autonomy over job tasks, compared to 69% of those in good health. Two in five (39%) of those in poor health reported job security, in contrast to 67% of those in good health.
Only 37% felt comfortable discussing mental health with their employer, compared to 58% of workers in good health.
Professor Stavroula Leka of Lancaster University said: “This new evidence suggests the UK could face more talent leaving the workforce due to ill-health in future years.
“The UK is facing a complex web of challenges when it comes to health and employment.
“The wave of workers leaving the labour market prematurely is not going to stop unless health is prioritised in the workplace.
“With younger workers and those on low incomes being particularly hard hit, action needs to be taken quickly to improve prospects and experiences before lasting damage is done.”
The Work Foundation called for more workplace support for those in poor health, better employment rights for low-income workers, and extra help for young people to enter sustainable employment.
This included better access to NHS mental health services, tailored employment support and a guarantee that all young people can take up good quality work.