Tackling health-related unemployment and economic inactivity in Southwark: A mixed methods approach to strengthen cross sector action

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Alice Fletcher-Etherington
Lisa Colledge
Nick Wolff
Kim Weatherston

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06-May-26

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Economic inclusion

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Introduction Health-related unemployment and economic inactivity are rising across the UK, driven largely by growth in long-term conditions. In Southwark, 12,700 working-age residents are unemployed (5.4%) and 55,300 are economically inactive (23%), with 10,500 inactive due to long-term sickness. To support local implementation of major national reforms—including the NHS 10 Year Plan, the Get Britain Working White Paper and new employment programmes—Southwark's Annual Public Health Report presented an assessment of local need, existing provision and evidence-based approaches for tackling health-related barriers to employment. Methods In order to develop recommendations to shape future service delivery and policy, the following methods were employed: • Analysis of local data from the Annual Population Survey and 2021 Census. • Co-produced qualitative insight with residents living with health conditions, facilitated through community research led by Sedulous Collective CIC. • Review of academic and grey literature on effective interventions across the work–health pathway, from job retention to return-to-work. • Mapping of local employment, health, voluntary and community sector services. • Engagement workshops with Council teams, NHS partners, VCS organisations and employment support providers. Results and implications Analysis revealed substantial inequalities in employment outcomes for residents with long-term conditions, including lower employment rates among those with mental health and musculoskeletal conditions compared with London and England averages. While health related-economic inactivity in Southwark is comparable to London, rates vary significantly across neighbourhoods and different demographic groups. During the COVID-19 pandemic, rates varied from 1 in 10 adults some of the borough's most disadvantages neighbourhoods, to 1 in 1,000 in the most affluent. Young people with mental health needs emerged as a high-risk and growing group, with limited employment support available. Community insight highlighted four major resident-reported barriers: inaccessible recruitment processes; inconsistent workplace adjustments; lack of flexible training and skills pathways; and fragmented or stigmatising support across services. The report generated a set of system-wide recommendations focused on: embedding work and health support within new Integrated Neighbourhood Teams; improving fit note practice and clinical referral pathways; expanding local supported employment through Connect to Work; targeting outreach to high-need populations; and incentivising employers through commissioning, training and social value frameworks.

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