The sentiment behind this saying is that we are wise not to focus on finding greener pastures somewhere else, but instead nurture and grow the ones we already have. In the context of this article, the UK workforce is our pasture and if it is watered it may well just help our economy grow in face of ongoing uncertain times.

The rise in NI and other tax initiatives has sent shockwaves across the UK in recent weeks (the saying be careful what you wish for comes to mind). We know the way through for many in hospitality, retail, and other people-centred businesses will be for the economy to improve – so that consumer confidence rises, spending increases, and investment flows.

But more recently the Telegraph published an article citing the Britain’s worklessness crisis as a hurdle to nourishing our economy, with the benefits system seemingly pushing millions out of our shrinking labour force.

The Telegraph states that ‘Britain’s unemployment rate rose to 4.3% during the three months to September, up from 4% the previous quarter.’

This is low in comparison to some of the historic data, specifically in the 1980s, where there was a jobless crisis of 11%. But this is a very different type of challenge. A modern one, filled with generation X, Y and Z’s all experiencing modern day stresses, associated with a more connected and demanding social and work life.

Up to 3,000 people per day are being signed off work and approved for sickness benefits, indicative of a welfare system that is under increasing pressure. Once the long-term jobless are categorised as sick they’re no longer counted in the unemployment figures. 

Data from the Department for Work and Pensions (DWP) shows around a quarter of working-age adults in the UK currently don’t have a job, some 11 million people. Of those aged 16 to 64, almost 1.5 million are unemployed – the 4.3% headline unemployment rate.

When you add back in the number of people who are economically inactive, according to the House of Commons library, which equates to 20.4 million people the figure reaches 22.2% of the workforce between 16-64 who do not work.

The steep rise (some 275,00 this year alone) has been attributed to long term-sickness and mental health issues. Largely arising off the back of the Covid pandemic. This number has been rising since 2019. 

This is both alarming and reflective of the wider issues we already know exist in the modern workforce. Mental health is real, and it has a real impact on both personal and business outputs. 

So, businesses will continue to do well if they can adapt a more human centred approach to wellbeing in their organisations for a whole raft of reasons, not least the risk of losing more qualified and experienced staff of which there is a shortage. 

The Institute for Fiscal Studies has warned of an “extraordinary” rise in spending on incapacity benefits, with the bill heading for well over £100 billion by 2030. 

Liz Kendall, Work and Pensions Secretary, is due to revamp the welfare system in the spring. However, analysis suggests the sickness benefits bill is set to rise by another £1.3 billion before Kendall launches that welfare review, as both mental health problems and obesity fuel a worklessness crisis that leaves countless employers unable to find sufficient staff. 

Research by the Centre for Economic and Business Research states that the UK’s GDP would be 3.1% (£84 billion) larger by the end of this parliament, had the one million more workers signed off since covid remain in the workforce. This would have brought an extra £30 billion in tax revenue, highlighting  a challenging picture moving forward.

The telegraph makes a very important point, that there are many people receiving disability benefits who do work, and others on sickness benefits who are genuinely unable to hold down a job. The reality is that no less than 69% of sickness benefit claimants now cite “mental and behavioural disorders” in their sickness benefit applications. 

So how do we ensure our pastures are green, how do we pay more attention to help our current workforce grow, and heal? 

It’s an inalienable truth that that any form of fundamental welfare reform will be imperfect and complex. But what we do have on our side is a growing awareness of the realities behind mental health as well as physical health, coupled with a government who are seemingly unafraid to approach things head on, even in light of unpopular responses.

For business leaders, and organisations generally, the work starts now – it’s a common fact that organisations take on the principles and values of their leaders. By focusing more on the humanity in our workforce, cultivating more open, honest environments, and leading with our imperfect and authentic selves – this creates a healthy environment in the context of a challenging modern world.

In an environment of increasingly difficult challenges to business, wellbeing is something that every one can start to contribute towards, to both avoid a workforce shortage and start to create more efficient and profitable businesses.