Young people with mental health conditions are nearly five times more likely to be economically inactive compared to others in their age group, according to new analysis by the Keep Britain Working Review.
Statistics in the report showed around a quarter of those who are economically inactive due to ill-health are under the age of 35.
The findings are part of the review’s discovery phase report, as former John Lewis boss Sir Charlie Mayfield examined the factors behind spiralling levels of inactivity, and how Government and businesses can work together to tackle the issue.
The Keep Britain Working Review was announced as part of the Get Britain Working White Paper which set out employment reforms for a generation to get Britain working and unlock growth as part of the plan for change.
It also included plans for overhauling job centres, empowering mayors and local areas to tackle inactivity, and delivering a Youth Guarantee.
Today’s report outlined the economic inactivity challenges facing the UK and how they compare to other countries.
It highlighted that 8.7 million people in the UK have a work-limiting health condition, an increase of 2.5 million (41%) over the past decade.
This included 1.2 million individuals aged 16 to 34 and 900,000 aged 50 to 64.
The data also revealed that young people with mental health conditions are significantly affected, with those aged 16 to 34 being 4.7 times more likely to be economically inactive than their peers.
Additionally, the report found that the duration of unemployment plays a crucial role in the likelihood of returning to work, as individuals who have been out of work for less than a year are five times more likely to re-enter employment compared to those who have been unemployed for longer.
The report also highlighted the potential economic benefit of better prevention, retention and rapid rehabilitation as it found that tackling sickness absence and ill-health related economic inactivity through these measures could be worth £150bn a year to the economy.
Sir Mayfield, said: “Our initial report published today confirms the scale of rising economic inactivity and what’s driving it.
“It underlines the urgency that we tackle this challenge by improving prevention and retention of those in work and by creating better pathways back into work for those who are economically inactive.
“It’s a problem that can and must be addressed by government and employers together.
“Even at this initial stage of the review, we have found inspiring examples of employers making a difference that’s literally life changing for some people.
“We need more of these on a greater scale and, in the next stages of the review, we will be engaging with many organisations to establish how that can be achieved.”
Liz Kendall, Secretary of State for Work and Pensions, said: “We must do far more to help people stay in work and get back quickly if they fall out.
“That’s why, as part of the reforms in our Pathways to Work Green Paper and our Plan for Change, we are making a decisive shift towards prevention and early intervention.
“We want to help more employers to offer opportunities for disabled people, including through measures such as reasonable adjustments, and we are consulting on reforming Access to Work so it is fit for the future.
“I want to thank Sir Charlie for this report. It shows the potential for what Government and employers can do together to create healthier, more inclusive workplaces, so we build on the great work some businesses are already doing.”