294,100 people in the North West are economically inactive due to long-term sickness – and 77,000 of these want a job, according to Labour analysis.

Official statistics show that 27% of people out of the workforce because of sickness want a job in the North West.

Since the pandemic, there has been an especially sharp uptick in economic inactivity amongst workers aged over 50.

Labour research finds that there are 19,600 more 50-64-year-olds in the North West who are economically inactive because of long-term sickness than there were before the pandemic.  This amounts to a substantial 13 per cent increase in older people outside the workforce because of ill health.

High levels of sick workers leaving the workforce have come alongside increases in the numbers relying on means-tested disability and health-related benefits in the North West.

Labour analysis shows that there are 50,004 more recipients of means-tested disability and health-related benefits in the North West than there were before the pandemic.

Labour has called on the Government to take urgent action to help over-50s and the long-term sick back to work.

In recently announced plans, Labour has committed to transforming Jobcentres and employment support services.  Budgets will be devolved to local areas that know their local jobs and skills needs best, and tailored support will be offered to the unemployed and inactive people who want help – with services available to a wider group of people than just those receiving unemployment benefits.

Labour will also look to expand employment programmes targeted at people with ill health, including those delivered via the NHS.

Jonathan Ashworth MP, Shadow Work and Pensions Secretary, said:

“These findings show a significant number of people across the North West would be working if only they had the right support.  Not only would that help raise their incomes and living standards, but it would also help grow our economy.

“Labour has a plan to get Britain working again.  We will give more power and flexibility to local areas to run employment support services and ensure that Jobcentres are open and accessible to all who would benefit from targeted, specialist help as part of our ambition to target the highest employment in the G7.”

Yasmin Qureshi, MP for Bolton South East, said:

“Everyone deserves proper and help and support to move into work. But we know too many aren’t getting the help they need from the Government to support them with a route into secure and well-paid work.”

“My constituents deserve a Labour government, which will be committed to delivering an employment support system that meets the needs of businesses and workers across the North West, which will drive regional economic growth and help to level-up our towns.”

ENDS

Notes to editors: 

• Statistics on the number of people in [region] who are economically inactive citing long-term sickness as the main reason – and the number of these who want a job – comes from the “Annual population survey – regional – economic inactivity by reasons” dataset, available via ONS’s Nomis website. ‘Pre-pandemic’ figures count the number of people in the year up to December 2019; ‘post-pandemic’ figures count the number of people in the year up to June 2022. The latest data was released on 11th October 2022, available at: https://www.nomisweb.co.uk/datasets/aps181
• The most recent ONS statistics on economic inactivity by reason report that 2,455,380 people were economically inactive because of long-term sickness in August-October 2022. 564,125 of these people want a job; this amounts to 23% of long-term sick economically inactive people wanting a job. The latest data was released on 13th December 2022, available at: https://www.ons.gov.uk/employmentandlabourmarket/peoplenotinwork/economicinactivity/datasets/economicinactivitybyreasonseasonallyadjustedinac01sa
• The estimate for means-tested disability and health-related benefit recipients is derived from the difference between the pre- and post-pandemic increase in households receiving Universal Credit with a ‘limited capability for work’ element and the decrease in caseload for income-based Employment and Support Allowance. A household cannot be receiving both UC and income-based ESA at the same time.
  • There are 77,493 more households receiving Universal Credit with a ‘limited capability for work’ element in August 2022 (the latest month for which data is available) than there were in February 2020 in the North West. Source: https://stat-xplore.dwp.gov.uk/webapi/jsf/login.xhtml
  • There are 27,489 fewer people receiving income-based Employment and Support Allowance in May 2022 (the latest month for which data is available) than there were in February 2020 in the North West. Source: https://stat-xplore.dwp.gov.uk/webapi/jsf/login.xhtml