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Work and the labour market

Work and the labour market

Work and the Labour Market

Work is an important building block of health. Work or the lack of it can affect health directly, both positively and negatively, for example by providing purpose or involving physical activity, or through work related injuries or stress.

The evidence that unemployment is bad for your health is clear (Gov.UK). Likewise good work is an important contributor to health and wellbeing across people’s lives (The Marmot Review 2010). However, low quality work can be worse for health than unemployment (Chandola & Zhang, 2018).

Health also influences employment.  The Northern Health Science Alliance estimates that around a third of the productivity gap between the North and South of England is caused by poor health. (Bambra et al, 2018). The Consultancy LCP recently estimated that most of the increase in economic inactivity since the COVID-19 pandemic has been caused by increases in long-term sickness, not early retirement. (LCP, 2023). This means improvements in population health or employment have the potential to create a virtuous cycle of better health leading to better productivity and higher incomes, leading to better health.

Unemployment

The percentage of people in employment in Bury (76%) is statistically similar to the percentage in England (75.4%) and the average amongst Bury’s statistical neighbours (74.3%) for 2021/22 (Public Health Profiles). This refers to the percentage of people who are in employment and are of working age (16 to 64). Figure 1 below illustrates that despite a decrease in this measure for 2020/21, Bury has increased for 2021/22 mirroring the trend seen nationally. The decrease in the percentage of people in employment for 2020/21 could be attributed to the coronavirus pandemic, as the coronavirus pandemic and the government response to its impact have had a significant effect on the UK labour market (ONS).

Figure 1: Percentage of people in employment, Proportion - %, Bury and England, 2017/18 – 2021/22

In 2018 (the last year for which data are available), Bury had significantly higher percentage of people claiming Employment and Support Allowance than the proportion of claimants in England (Public Health Profiles). This refers to people of working age (16-64) who due to having ill health or a disability are claiming Employment and Support Allowance (ESA) benefit, Incapacity Benefit (IB) or Severe Disablement Allowance (SDA). Figure 2 below illustrates the trend in Bury and England for this measure.

Figure 2: Employment and Support Allowance claimants, Proportion - %, Bury and England, 2014 – 2018

Bury is however not statistically different to England for the rate of long term claimants of Jobseeker’s Allowance. Claimant rates for both Bury and England have fallen from above 3 per 1,000 working age adults in 2019 to 2.1 and 1.9 per 1,000 in England and Bury respectively in 2021, as illustrated in Figure 3 below (Public Health Profiles).

Figure 3: Long term claimants of Jobseeker’s Allowance, Crude rate – per 1,000, Bury and England, 2017 – 2021

Bury has lower rates of sickness absence than England, with only 0.5% of working days being lost due to sickness absence for 2019-21 in Bury, compared to 1.0% in England (Public Health Profiles). Furthermore, Bury has a significantly lower percentage (0.7%) of employees who had at least one day off sick in the previous week for 2019-21, when compared to England (1.8%). Bury has the lowest percentage in this measure when compared to its statistical neighbours (Public Health Profiles).

Inequalities in Work

By geography

The proportion of people who are economically active and in work varies substantially across Bury. According to data from the 2021 census, 60.6% of people in Ramsbottom ward are economically active and in work, compared with 49.6% in Bury East Ward. Figure 4 below shows the percentage of people who are economically active and in work according to the 2021 census for Bury’s electoral wards, Bury, and England.

Figure 4: Percentage of people aged 16 and over who are economically active and in work (excluding full-time students), Bury’s electoral wards, Bury and England, 2021.

As discussed above, unemployment is hazardous to health, both directly through stress and loss of social status, and indirectly through reduced income and lack of access to other building blocks of health.

The proportion of people who are economically active but unemployed (i.e. who would like to work but currently cannot) varies even more starkly, ranging from 1.2% of over 16s in North Manor to 4.6% in Bury East.

Figure 5: Percentage of people aged 16 and over who are economically active and unemployed (excluding full-time students), Bury’s electoral wards, Bury and England, 2021.

The most common reason for economic inactivity is retirement, accounting for 56% of economic inactivity. 22.1% of over 16s in Bury are retired. This varies from 14% in Bury East to 35% in North Manor, reflecting the age profiles of the populations in these wards.

 

Long-term sickness or disability accounts for 11.8% of all economic inactivity in Bury (compared with 10.5% of economic inactivity across England as a whole). 4.7% of over 16s are economically inactive in Bury due to ill health or disability (compared with 4.1% for England). However, this ranges from 2.3% in North Manor to 7.1% in Moorside.

Figure 6: Percentage of people aged 16 and over who are economically inactive due to long-term sickness or disability (excluding full-time students), Bury’s electoral wards, Bury and England, 2021.

By Disability

Only around half of disabled people are in work, but many disabled people including people with long term health conditions want to work, and could do so with the right support. The majority of long term health conditions are acquired in adulthood, and in an ageing population this is an issue that is likely to worsen. Health is the leading reason for people aged 50 to 64 to be out of work. Although statistically similar to England, Bury has a bigger gap in the employment rate between those with a physical or mental long term health condition (aged 16 to 64) and the overall employment rate for 2021/22. Bury has consistently had a higher gap than England in this measure. Bury is similar to its statistical neighbours for the gap between those with a long term condition and the overall employment rate (Public Health Profiles). Figure 7 below illustrates the trend for Bury and England in this measure.

Figure 7: Gap in the employment rate between those with a physical or mental long term health condition (aged 16 to 64) and the overall employment rate, Gap – percentage points, Bury and England, 2017/18 – 2021/22

The evidence that appropriate work can bring health and wellbeing benefits is widely recognised. However, employment rates amongst disabled people reveal one of the most significant inequalities in the UK. Declining health and being out of work deny the benefits that employment can bring, creating pressures on the NHS, and sustaining a major injustice in society. Since 2015/16, Bury has consistently had a statistically similar percentage gap in the employment rate between those who are in receipt of long term support for a learning disability (aged 18 to 64) and the overall employment rate. The gap in Bury increased by over 1% from 70.8% in 2020/21 to 71.9% in 2021/22, consistent with an increase seen nationally from 70.0% to 70.6% for the same time period (Public Health Profiles).

 

By Mental Illness

A major factor in maintaining good mental health is stable employment. There is a correlation between mental health and unemployment. Good mental health is a key influence on employability, finding a job, and remaining in that job. Unemployment causes stress, which ultimately has long term physiological health effects and can have a negative impact on mental health, including depression, anxiety, and lower self esteem (Public Health Profiles). Getting back into employment increases the likelihood of reporting improved health (from poor to good) almost threefold, and boosts quality of life almost twofold. Bury has gone from being significantly worse than the England average to statistically similar for the gap in the employment rate for those who are in contact with secondary mental health services (aged 18 to 69) and on the Care Plan Approach, and the overall employment rate. Bury has mirrored the downward trend seen nationally for 2020/21 in this measure, however Bury has the third highest percentage when compared to its statistical neighbours (Public Health Profiles). Figure 8 below illustrates the trend for Bury and England in this measure.

Figure 8: Gap in the employment rate for those who are in contact with secondary mental health services (aged 18 to 69) and on the Care Plan Approach, and the overall employment rate, Gap - Percentage points, Bury and England, 2017/18 – 2020/21

Links to other resources

Nomis labour market profile for Bury can be accessed online, which includes figures on employment and unemployment, economic inactivity, employment by occupation among other topics. Ward level labour market profiles within Bury can also be accessed via Nomis.

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