IER Newsletter - Current Issue

IER Newsletter - March 2025

Addressing job-related ill health in the UK: New insights and policy implications

The extent of job-related ill health in the UK has been described as a national crisis, with significant costs for employees, employers, the NHS and the State. As this issue continues to grow, it is increasingly urgent to find new solutions that can address these challenges. One potential approach is to reform jobs so that they not only avoid harming workers' health but actively support and enhance it. A new ReWAGE Evidence Paper explores this issue in depth, identifying key aspects of jobs that are linked to ill-health and, conversely, those that can help maintain or improve workers’ health. The paper offers valuable insights into the specific job characteristics that impact worker wellbeing, and outlines the broader policy implications. Read More This research, funded by Deloitte, also highlights critical areas for future study to better understand and mitigate the impact of work on health. With this evidence, there is a clear opportunity for policymakers, businesses, and healthcare providers to take proactive steps in addressing this growing challenge. The evidence paper is accompanied by a policy brief. Warhurst, C., Toro, C., Harris, J., Dix. G. and Balogh, R. Date. (2025). The case for creating healthy jobs: A review of the evidence. Warwick Institute for Employment Research.

Expert comments on the latest UK labour market statistics from the Office for National Statistics

IER's Dr Sangwoo Lee commented on the latest labour market statistics from the Office for National Statistics, which present a mixed outlook for the UK economy. While the employment rate has shown modest improvement, the unemployment rate has risen to 4.4%, continuing its upward trajectory. He highlights that the increase in the UK Claimant Count in February 2025 points to ongoing challenges in job creation and a growing reliance on benefits. Read More

Dr Lee says that regular pay growth remains strong at 5.9%, outpacing inflation and providing 2.2% real terms growth, offering some relief amid the ongoing cost-of-living pressures. However, he notes that the combination of sustained wage growth and high vacancy levels (816,000) may delay interest rate cuts as the Bank of England monitors potential inflationary risks driven by wages.

He further comments on the stark regional disparities, with employment rates ranging from 69.9% in Wales to 79.1% in the South West. Notably, London’s labour market is experiencing considerable volatility, with a 1.8 percentage point drop in employment over the last quarter and unemployment reaching 6.3%, the highest in the UK.Looking ahead, Dr Lee comments that the UK labour market appears to be undergoing structural shifts rather than a clear recovery or downturn. He notes that rising redundancies, alongside moderate job growth, suggest a sectoral realignment. While retail and hospitality sectors face contractions, there are gains in professional services and the public sector. Dr Lee concludes that this ongoing reallocation of labour is likely to continue through 2025, potentially intensifying regional inequalities while stabilising overall unemployment levels.

Research highlights challenges faced by ethnic minority veterans

IER's new research, commissioned by the Office for Veterans’ Affairs (OVA), provides vital insights into the experiences of UK Armed Forces veterans from ethnic minority backgrounds. Led by Gaby Atfield, Senior Research Fellow at IER, the study highlights significant disparities in employment, housing and social integration, revealing areas where targeted support is needed.

Ethnic minority veterans are twice as likely as their white peers to experience unemployment and are more often in lower-skilled jobs. While many veterans transition successfully, some face barriers linked to racism, housing affordability, and limited financial guidance, with nearly half receiving no financial advice before leaving the Armed Forces. Social integration also presents challenges, with 22% reporting feelings of loneliness, and stigma remains a key barrier to accessing mental health support. Read MoreGaby Atfield emphasised the importance of this research in ensuring that veterans’ voices are heard by policymakers:

“As the Armed Forces become more diverse, so too does the veteran population. This study provides a vital opportunity to understand the needs and aspirations of veterans from minority ethnic backgrounds and ensure they receive the support necessary to thrive in civilian life.”The study calls for improved employment support, proactive mental health interventions, stronger financial planning resources and digital platforms to enhance peer support and community building. By shedding light on these challenges, the research aims to inform policy and ensure that future support services are inclusive, effective, and responsive to veterans’ needs.

Atfield, G., Owen, D., Erickson, E., & Glendinning, A. (2025). UK Veterans from ethnic minority backgrounds. Warwick Institute for Employment Research.

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