The diversion from 'unemployment' to 'sickness' across British regions and districts

Around 2.7 million non-employed adults of working age in the UK claim sickness-related benefits, and the numbers have risen steeply over time. The very large variation in the numbers across districts and regions points strongly to extensive hidden unemployment, especially in older industrial areas affected by job losses. This paper builds on two previous papers by the same authors – one dealing with the theoretical framework and the other with a local case study – to present wholly new estimates of the scale of the diversion across all parts of the country. It also questions contemporary perceptions of the UK labour market and the validity of current approaches to re‐engaging sickness claimants with employment.