This piece is part of a series of blog posts by members of the Inequalities in Health Alliance, highlighting the breadth of health inequalities that exist throughout society. #EverythingAffectsHealth
Employment is a key determinant of health, writes David Finch, assistant director in the Healthy Lives directorate at the Health Foundation.
Employment has a direct effect on health through the day-to-day structure and sense of purpose that work can provide.
More indirectly, work can provide income and financial security to support an adequate standard of living, and reduce stress from trying to make ends meet. Health can also affect work, with poorer health reducing employment chances.
At times of economic crisis, there is often a heightened risk of knock-on implications for health. In the early stages of the pandemic, expectations of high unemployment suggested significant potential risks for physical and mental health.
However, the substantial government support provided through the furlough scheme helped prevent such a rise – a clear example of how policy can make a difference. As our analysis showed, the furlough scheme – either through income support or maintaining a connection to work – may also have provided some protection for mental health.
What we are yet to fully understand are the longer-term implications of the pandemic for both employment and health. There may be longer-term scarring effects due to people, especially young people, spending long periods of time without work (whether furloughed or not) and experiencing periods of poor mental health when living with restrictions. It will also be important to understand how the quality of work may have changed, because low-quality employment can be more damaging for health than unemployment.
Overall, employment has recovered strongly, with unemployment falling in February 2022 and vacancies remaining high. Of concern is the growth in economic inactivity, particularly among older workers and those with poor health. The long-term health implications of leaving the labour market in later working life could be significant, while existing health conditions can present a barrier to re-entering employment. That is why providing support to help this group back into work should be a priority for government.
The latest economic crisis – the soaring cost of living – is unlikely to be resolved by supporting people into work. Pay rises appear unlikely to keep pace with the rising cost of living. The Bank of England projects inflation to reach 10% by the end of the year, leaving workers set for a real-term pay squeeze. The resultant drop in living standards cannot be addressed by employers alone.
Pressures on household budgets are already requiring families to choose between prioritising food, heat or housing, all of which are the basic requirements for good health. The financial strain and risk of falling into problem debt also affect health through stress, and eventually harm physiological health. Preventing a living standards and health crisis will require government to take wider and better-targeted action on household incomes, starting by boosting support through the benefit system.