Does poor health affect employment transitions?

This report:
reveals that government policies designed to simply shift people with poor health from unemployment into work are likely to be ineffective;
follows the same group of people over time, to build a three-dimensional picture of the link between health and movement in and out of work over time, and;
finds that qualifications can mitigate the impact of poor health but they cannot overcome them altogether.
Key points
Self-reported poor health tends to mean people are less likely to be employed, to remain in employment, or to move from unemployment to employment, especially full-time employment. Those reporting poor health are also less likely to move from economic inactivity to activity, and more likely to make the reverse transition.
In terms of entering work and remaining in work, those reporting poor mental health or drug and alcohol problems face greater disadvantage compared to those reporting poor physical health. However, the latter are still disadvantaged compared to those reporting good health.
Those reporting problems with alcohol or drugs are the least likely to enter employment or remain in employment.
When in employment, people reporting poor physical or mental health are more likely to move from permanent to temporary work or into a low-paid job from a better-paying job.
Those reporting poor mental health are significantly more likely to move from full-time to part-time work, and less likely to move out of low pay.
Qualifications can mitigate the negative impact of poor health on labour market transitions, but they cannot overcome them altogether. Qualifications are particularly important with regard to moving into work, and reducing the likelihood of moving into low pay from a better-paid job