Long-term illness impacting on job market - HR expert

The latest 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 illnesses.

While the unemployment rate fell to its lowest for nearly fifty years in the latest employment statistics, the number of people not able to work due to sickness has hit a record high.

Sutton Coldfield-based specialists, HR Caddy, says 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.

According to HR Caddy, the ONS data reveals that job vacancies are falling but demand for particular skills is rising.

While the national annual growth in average total pay (including bonuses) was 6 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 7 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 and healthcare was around 2 per cent.

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.

“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. ”

“For employers, this 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 businesses. ”