Ill-health preventing people from working is costing Wales almost £20 billion a year, according to new figures from Public Health Wales.

The report estimates the total annual cost at £19.4 billion, taking into account lost productivity, increased pressure on public services and reduced tax income. It highlights the growing impact of long-term sickness and disability on the Welsh economy.

The largest share of the cost – £8.2 billion – comes from people of working age who are unable to work due to ill-health. A further £2.9 billion is linked to sickness absence, while £2.3 billion is attributed to unpaid carers who are themselves of working age but unable to take on employment.

Additional costs include £2.4 billion in benefits payments and £3.4 billion in lost tax and National Insurance contributions. The NHS also faces an estimated £155.6 million in extra costs where ill-health is linked to economic inactivity.

Dr Ciarán Humphreys, a consultant at Public Health Wales, said many people in Wales are spending longer in poor health due to wider social factors.

“In Wales, many people spend more of their lives in poor health, because the building blocks we need to keep us healthy, such as decent housing or good, fair work, can be weak or absent,” he said.

“We have seen a rise in people out of work in recent years relating to ill-health, especially mental health among younger people, and musculoskeletal problems in older ages.

“People with health conditions are more likely to enter work with early, tailored support, and to stay in work with engaged, flexible, supportive employers. This research shows the economic implications caused by ill-health and disability keeping people out of work, demonstrating the importance of investing in prevention to keep people healthy and support participation in fair work.”