Why Wales has a higher sickness absence rate than other UK regions, and what it means for productivity

By Dr Julia Diniz for the Wales Productivity Forum

Wales recorded the highest sickness absence rate of all UK regions in 2022, based on national statistics from the Office for National Statistics (ONS). In a new article in the Welsh Economic Review, research undertaken by the Wales Productivity Forum shows that in 2023, this pattern remained clear: Wales continued to stand out as a region where sickness absence is most common.

This matters for Wales’ productivity challenge for two closely related reasons. First, it reduces labour input through hours lost and disrupted workflows. Second, it offers a window into underlying worker health and job quality, including the types of working environments and job demands that can shape people’s ability to stay in work.

Sickness absence rates across UK regions.

What does sickness absence look like across UK regions?

Using data from the Annual Population Survey we find that the regional picture in 2023 shows a striking pattern. Wales has the highest average sickness absence rate – the ratio of hours reported as absent due to sickness to contracted hours – at 3.2%, followed by a number of regions in northern England. By contrast, London (1.6%) and the South East (2.0%) have the lowest sickness absence rates.

Why does Wales stand out, and why does it matter for productivity?

While Wales has higher sickness absence rate, our analysis shows that differences in occupation, industry and firm size explain a substantial share of the gap between Wales and low-absence regions such as London and the South East.

These results suggest that higher rates of sickness absence in Wales are linked to the structure of the Welsh labour market. Policies aimed at boosting productivity through reducing sickness absence may therefore benefit from focusing on:

• Improving job quality and working conditions in high-absence occupations and industries
• Supporting the growth of skilled and low-absence occupations and industries
• Strengthening pathways that help people remain in high quality and high skilled jobs

This aligns with growing policy attention on economic inactivity, employment retention, and health-related barriers to work, and highlights why sickness absence should be part of Wales’ productivity conversation.

Read the full paper

Diniz, J. & Jones, M. (2025). What explains Wales’ higher sickness absence rate compared to other regions? Welsh Economic Review.