THE RF LABOUR MARKET OUTLOOK | QUARTERLY BRIEFING Q1 2024 1 The Resolution Foundation Labour Market Outlook Charlie McCurdy1 When comparing the pre-pandemic period to today, the national employment story has generally focused on the rise in inactivity due to ill health and the resultant fall in employment. [...] Areas of the country with high rates of pre-pandemic ill health and low shares of the population with degrees, like Lincolnshire, have seen particularly steep increases in the share of the working-age population who are economically inactive due to ill health. [...] There are spatial differences in the rise in inactivity due to ill health Next, we turn to the post-pandemic rise in inactivity (those out of work and not looking for work) due to ill health, which has dominated recent discussions on the nexus between health and the UK labour market. [...] On the whole, the same places saw rising sickness-related inactivity and falls in employment – but this is not true for all areas Stepping back, is there an overlap between the areas which have seen the biggest rises in sickness- related economic inactivity and those with the largest falls in employment since the pandemic began? On average, the answer is yes. [...] In fact, by mid-2023, the UK was the only country in the G7 whose working-age employment rate remained lower than before the pandemic, although some of the puzzle could soon be revised away in the TFLS.
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