Workplace absence costs UK £12.2 billion

According to a new

report, workplace absence cost the

economy £12.2 billion in 2004, with concern that £1.7 billion of that cost is due to staff "pulling sickies" rather than absence resulting from genuine ill-health.

The latest annual CBI-AXA Absence Survey, published today, shows that absence cost £495 per employee in 2004 compared with £475 per employee in last year's survey.

The overall cost of £12.2 billion has increased from £11.6 billion in the previous survey. These figures represent the cost of covering salaries for absent staff, the resulting overtime and temporary cover, and lost service or production time. The survey of over 500 organisations also shows that 6.8 working days were lost per employee in 2004.

The total number of days lost to absence across the UK economy fell by 4.5 per cent to 168 million in 2004, from 176 million in 2003. That brings total absence back in line with the level seen in 2002 (166 million days). The CBI believes rising labour costs and growth in average earnings are the reasons why the total cost of absence has increased despite the lower absence level.