Businesses should resist scaling back on healthcare strategies according to Broadstone, even as the unemployment rate increases.
ONS labour market data out today shows that the UK unemployment rate for people aged 16 years and over was estimated at 4.3% in July to September 2024.
That is above estimates of a year ago, and up from 4% in the previous quarter (Jun-Aug).
The three-month average of weekly earnings across the whole economy was 4.3%, up from 3.9% in the previous quarter.
The economic inactivity rate fell by 0.4 percentage points in the latest quarter to 21.8%, but since Dec-Feb 2019/20 it has gradually risen by 1.2 percentage points, remaining well above pre-pandemic rates.
Emily Jones, client consulting director at leading financial services consultancy Broadstone (pictured), said: “With mounting challenges in accessing timely NHS care, growing numbers of people remain out of the workforce, placing pressure on both public health services and the economy.
“Employers are increasingly investing in preventative healthcare measures, recognising that early intervention can detect and address conditions before they become chronic or life-threatening.
“Despite the cost pressures many businesses will now face following the Budget, healthcare strategies remain critical to keeping employees healthy and maintaining productivity, so employers should be cautious of scaling back on such provisions.”
David Pye, client consulting director at Broadstone, said: “With a rising unemployment rate and slowing wage growth, employers face headwinds that are only likely to intensify as the Chancellor’s employer National Insurance contributions increases start to be factored into budgets for next year.
“Finding ways to navigate this difficult market for suitable employee resource will be key to success.
“Businesses should look at cost effective ways to reward and retain employees and ensure they mitigate the tax measures through taking advantage of salary sacrifice measures whilst continuing to focus on productivity.”
