Long-term illness adding to recruitment challenge - HR expert

A HR expert claims long-term illness is adding to the labour market struggles facing businesses.

Data from the Office for National Statistics (ONS) has found that the number of people not seeking work has increased as a result of them experiencing long-term illness.

The ONS says that while the unemployment fell rate to its lowest for nearly 50 years, the number of people not able to work due to sickness has hit a record high.

Sutton Coldfield-based specialists, HR Caddy, believe this trend in employment is shrinking the pool of available employees for many businesses during a time when skilled workers are already in high demand.

Higher levels of economic inactivity are particularly prevalent between 50 to 64 years and those aged 16 to 24 years.

Nicola Callaghan (pictured), managing director at HR Caddy, said: “Long-term sickness is not just affecting the unemployed, but also many in work, who are having to take extended periods of time off to manage their condition.

“While it is true that long-covid is likely to blame for some of these cases, there are many other illnesses and conditions within the modern workplace to consider, including long-term absence due to stress and mental illness. ”

HR Caddy says that the ONS data shows that job vacancies as a whole are falling but demand for particular skills is rising.

This lack of talent is hitting certain industries, which is reflected, in part, by records showing higher pay and benefit increases within particular sectors.

While the national annual growth in average total pay (including bonuses) was six per cent, some sectors saw much higher rises in pay as demand for skills has grown.

For example, the growth in total average pay for the finance and insurance sector from August 2021 to August 2022 was 13 per cent, this was followed by energy production and supply and transportation and storage which saw pay growth of seven per cent.

In comparison, average total pay growth in the Information and communication sector only grew by 3 per cent and the total public sector wage growth for services like education, public administration, defence, social security and healthcare was around two per cent.

“This latest ONS data has revealed some interesting truths around the current labour market, particularly when it comes to the impact of long-term illness on the availability of workers, as well as where the demand is the strongest, ” said Nicola.

“For employers, this really highlights the importance of investing in the retention of skilled employees and the support of people experiencing extended periods of illness.

“Ignoring these key trends could lead to a shortage of skilled people essential to your business. ”