24.03.2025

Young people nearly fives time more likely to be put out of work

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 published on 20 March by the Keep Britain Working Review.

Statistics in the report also show around a quarter of those who are economically inactive due to ill-health are under the age of 35 – illustrating how early barriers are impacting many of those who may be beginning their work journey or developing.

The findings are part of the review’s Discovery Phase report, as former John Lewis boss Sir Charlie Mayfield examines 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 the biggest employment reforms for a generation to get Britain working and unlock growth as part of the plan for change. It also includes plans for overhauling job centres, empowering mayors and local areas to tackle inactivity, and delivering a Youth Guarantee so all young people are either earning or learning.

The report sets out the economic inactivity challenges facing the UK and how this compares to other countries. It finds that:

There are 8.7 million people in the UK with a work-limiting health condition, up by 2.5 million (41 per cent) over the last decade, including 1.2 million 16 to 34-year-olds and 900,000 50 to 64-year-olds
These figures show young people (16 to 34-year-olds) with mental health conditions are 4.7 times more likely to be economically inactive than their cohort
Those who are out of work for less than a year are five times more likely to return to work compared to those who are out of work longer

The report also highlights the potential economic benefit of better prevention, retention and rapid rehabilitation: it finds that tackling sickness absence and ill-health related economic inactivity through these measures could be worth £150 billion a year to the economy.

Chair of the independent review, Sir Charlie 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.
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"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."

Secretary of State for Work and Pensions, Liz Kendall, 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."

Separate research also suggests that if the UK could reduce the number of young people who are not in education, employment or training by a third, to match Germany’s rate, UK GDP could increase by 1.8% in the long-term (equivalent to £38 billion) – underpinning why health and disability reform to get Britain working is central to unlocking growth and delivering on the Plan for Change.

The report sets out the main areas for the next stage of engagement – where in the coming months written submissions and face-to-face engagements with businesses and stakeholders will gather evidence to develop recommendations to come in Autumn.

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