Written by Kunal Sawhney, CEO, Kalkine
It has been a positive surprise for the UK, Gross Domestic Product (GDP) made a bounce back to positive territory in January to 0.8 per cent after falling by 0.2% in the final month of 2021. The numbers are above the pre-Covid-19 levels of February 2020, and one of the major contributors to the high GDP growth was the unexpected rebound in food and drinks services of 6.8 per cent.
Though all the sectors contributed positively, it was the growth in services up 0.8 per cent, production up 0.7 per cent and construction up by 1.1 per cent, which is worth mentioning, while some lag was seen in activities like service and real estate.
Human health and social work sector
As per the data of the Office for National Statistics (ONS), the GDP growth during the period, February 2020 and January 2022 was majorly driven by human health and social work activities. This is the segment that has been in focus for the last two years. Statistics reveal that the number of workers suffering from work-related ill-health surged in 2020/21, which broadly remained flat before the coronavirus pandemic. Of the estimated 253,000 work-related ill health cases, almost half (49 per cent) constituted of stress, depression, or anxiety.
Health and social care sector play a vital role in nations’ development and growth, providing high-quality and sustainable care at the right time in the right place. Around 5 million people are employed in the sector.
The major industries which hold the highest level of concentration in Human Health and Social Work Activities include Hospitals, Learning Disability, Mental Health & Substance Abuse Facilities, and Corporate Wellness Services. If we dive deep into the industries in the segment, industries that have high-profit margins include health and wellness spas, followed by cosmetic surgeons’ clinics, corporate wellness services, and telehealth services.
Challenges and remedies
The sector played a crucial role in the unprecedented event of the Covid-19 pandemic. However, the pandemic also highlighted some chronic problems of the sector apart from the shortage of staff. The sector has witnessed a steady increase in the number of people employed, though it is confronted with many challenges. The sector needs special attention from the government as it has been at a faster pace compared to other sectors, while it is dominated by the female workforce but at the same time has been facing a gender pay-gap.
It has been historically proven that investments in the health care sector have considerable economic multiplier effects, which help in the growth of the broader economy. The sector serves all classes equally and is crucial for the unserved population, who, if not taken care of, cannot fully contribute to the economic growth.
Creating adequate work opportunities for the human health and social work sector plays a vital role in economic development, and the large deficits of adequate health worker requires a rejig of the current health employment policies to get optimal economic returns on investment in the sector.