Unemployment

Introduction
Unemployment is a critical public health concern that profoundly impacts the wellbeing of individuals, families, and communities. Beyond financial hardship, unemployment is associated with a wide range of adverse outcomes, including poorer mental and physical health, increased demand on health and social care services, and widening health inequalities. Understanding why unemployment matters for population health, and how it can be effectively addressed, is essential for developing holistic policies and interventions that promote economic stability and health equity.
Unemployment in Derbyshire presents a mixed picture, with marked variation across districts and population groups. Although overall unemployment rates in the county remain below the national average, pockets of deprivation persist. Areas such as parts of Chesterfield, Erewash, Bolsover, and North East Derbyshire experience higher levels of economic inactivity and long-term unemployment. The legacy of industrial decline, particularly coal mining and manufacturing, combined with limited access to higher-skilled and well-paid employment, continues to shape local labour market inequalities.
Young people, individuals with lower educational attainment, and those with health-related barriers to work are disproportionately affected. Rural communities face additional challenges, including limited public transport, digital connectivity issues, and fewer local employment opportunities.
Why is it important to Population Health?
Unemployment has a profound impact on health, and the relationship runs both ways: poor health can push people out of work, while being unemployed increases the risk of physical and mental illness. In Derbyshire, this connection is especially important because some communities experience higher levels of deprivation, long-term sickness, and barriers to employment. These wider social and economic factors shape health outcomes across the county, contributing to persistent inequalities between places.
Areas such as Chesterfield, Bolsover and parts of Erewash face higher rates of mental ill-health, long-term conditions and worklessness, creating a cycle that is difficult to break without targeted support. Public health, employment services, the NHS, and councils all play a critical role in reducing these inequalities by helping people stay healthy, stay connected, and stay in work wherever possible.
The following sections outline how unemployment affects mental and physical health, how it links to wider determinants such as poverty, housing and education, and what this means for Derbyshire’s communities.
Mental Health
Unemployment is strongly associated with poorer mental health outcomes, including increased rates of stress, anxiety, depression, and suicide. Financial strain, loss of routine, and a reduced sense of purpose contribute to psychological distress and social isolation. Evidence from national data shows that long-term unemployed people have some of the highest suicide rates in England and Wales. In Derbyshire, areas with high deprivation such as Chesterfield and Bolsover also have higher levels of factors linked to poor mental health, including lower educational attainment and obesity, which compound the risk of mental illness and worklessness.
Local services respond to this need. For example, Derbyshire Healthcare NHS Foundation Trust offers Employment Support in IAPT (Improving Access to Psychological Therapies), providing tailored one-to-one support alongside mental health treatment to help people find and sustain work.
Recent investment in Individual Placement and Support (IPS) job coaches in Derbyshire recognises that employment is a critical factor in recovery for people with severe mental health conditions, with evidence showing that stable work supports better health and reduces reliance on clinical services.
Physical Health
There is a bi-directional relationship between health and unemployment: poor health can lead to job loss or exclusion from the labour market, and unemployment itself contributes to poorer physical health outcomes. This may result from reduced access to healthcare, increased engagement in unhealthy behaviours such as smoking or poor diet, and chronic stress, which can weaken the immune system and exacerbate existing conditions.
In Derbyshire, workplace health initiatives, including workplace health pilot programmes offering free NHS health checks and wellbeing support in workplaces, aim to help people maintain health and stay in employment.
Increased Healthcare Costs
Higher rates of illness and mental health conditions in unemployed populations place additional strain on healthcare systems, increasing demand for services and associated costs. In Derbyshire and nationally, mental ill-health is also a leading cause of sickness absence, affecting workforce productivity and putting pressure on NHS and social care resources.
Intergenerational Effects
Families experiencing unemployment often face increased stress and deprivation, negatively impacting children’s development, educational attainment, and long-term health outcomes. This perpetuates cycles of disadvantage across generations. In parts of Derbyshire with higher child poverty and longer-term worklessness, such as Bolsover and Chesterfield, children may be disproportionately exposed to these risks.
Structural Inequalities
The impact of unemployment is not felt equally across society. It often results from structural issues and barriers beyond individuals’ control. Inequities in access to quality education, training, transport, and employment opportunities mean that people from disadvantaged backgrounds face the greatest challenges in securing stable, good-quality work.
In Derbyshire, overall unemployment rates are generally below the England average, but variation across districts is marked: areas such as Chesterfield and Erewash have higher unemployment, while Derbyshire Dales has lower rates. Across the county, around 3.6% of the working-age labour force are unemployed, compared to higher regional and national figures, and almost one-fifth of residents aged 16 to 64 are economically inactive, with a notable proportion out of work due to long-term sickness or disability. These factors are closely linked with health inequalities and worklessness.
The Derbyshire Population Health Approach
The Derbyshire Population Health Approach focuses on prevention, population health, evidence-informed practices, causes, and collaboration. It emphasises proactive measures to prevent health issues, tailors interventions to specific populations, incorporates evidence-informed practices, addresses underlying causes, and promotes collaboration for effective action.
When considering the topic of unemployment within The Derbyshire Population Health Approach:
• Prevention
Preventing the harmful effects of unemployment means acting early and across the wider system. This includes helping people remain in good work, supporting them through periods of ill health, and reducing the barriers that make job loss or long-term worklessness more likely. Prevention in Derbyshire includes improving access to careers support, skills development, welfare advice, childcare, transport, and workplace health support, particularly for people and places facing the greatest disadvantage.
Preventing health inequity caused by unemployment requires coordinated action across health, employment, transport, education and community services.
1. Improve Access to Good Work
- Provide targeted support for people with long-term conditions, disabilities, caring responsibilities or gaps in employment.
- Strengthen partnerships between health services, Jobcentres, colleges, councils and employers to support access to stable, good-quality work.
- Work with employers to improve job quality through fair pay, flexibility and supportive workplaces.
2. Reduce Poverty and Strengthen Financial Security
- Improve access to welfare, benefits advice and crisis support.
- Promote benefit uptake, free childcare and schemes that reduce household costs such as food, fuel and housing.
- Deliver financial wellbeing support through schools, community hubs and voluntary sector partners.
3. Strengthen Mental and Physical Health Support
- Expand early mental health support and social prescribing.
- Improve healthcare access in rural and deprived communities through mobile services, digital options and outreach.
- Focus prevention programmes such as smoking, alcohol, healthy diet and activity in areas with high unemployment or long-term sickness.
4. Improve Skills, Education and Training
- Increase access to vocational training, apprenticeships and adult education aligned with local growth sectors such as green jobs, logistics, digital and health.
- Strengthen digital skills support.
- Deliver targeted outreach in ex-industrial and deprived areas.
5. Address Transport and Rural Barriers
- Improve rural transport links to jobs, training, healthcare and services.
- Develop community transport and employer-linked travel support for shift patterns.
- Use local, place-based transport solutions where bus routes are limited.
6. Support Healthy, Connected Communities
- Strengthen community networks to reduce isolation and build confidence.
- Deliver employment and health support in accessible local places such as libraries, family hubs and community centres.
- Co-design solutions with communities based on local priorities.
7. Use Data to Target Inequalities
- Focus resources on areas with the highest unemployment, poorest health or biggest transport barriers.
- Share data across partners to identify people at risk early.
- Tailor support to the needs of rural areas and ex-industrial towns.
8. Create More Local Jobs
- Support investment and regeneration that creates accessible jobs in areas affected by historic job losses.
- Encourage local recruitment and reduce unnecessary barriers in hiring.
- Help small businesses, social enterprises and community organisations grow and create jobs.
Derbyshire Employment Support Offer
Connect to Work
A free programme for people aged 18+ facing employment barriers. Participants receive up to 12 months of personalised support to build confidence, develop skills and move into work.
Youth Guarantee Trailblazer - Unstoppable Derbyshire
A six-month programme for 18 to 21 year olds offering industry experience, skills development, wellbeing support and advice. Website: unstoppablederbyshire.com
Youth Employment Service (YES)
Supports 16 to 24 year olds into education, training and work. Three face-to-face hubs in Chesterfield, Cotmanhay and Swadlincote bring together multiple services, including careers, disability employment and adult education.
National Careers Service
Free, impartial careers and training advice for people aged 13+. Support includes career planning, CV help, interview skills and finding training. Available online, by phone and face-to-face in some areas.
Supported Internships
Employment-focused programmes for 16 to 24 year olds with an EHCP, combining work placements with on-site training or college learning.
Apprenticeships
Paid roles combining work and training. Available across sectors and levels, with adjusted English and maths requirements for 16 to 24 year olds with an EHCP.
Disability Employer Engagement Derbyshire (DEED)
Supports employers to improve inclusive recruitment and workplace practices. Provides training, advice and help to develop supported employment pathways.
Disability Employment Service (DES)
One-to-one support for disabled adults and people with long-term health conditions. Helps build confidence, explore options and move at a person’s pace toward sustainable employment.
• Population
1. Derbyshire’s Population Profile and Employment Landscape
Derbyshire’s population in 2025 is approximately 796,800 people. Of these, a significant proportion are of working age, 16 to 64, and employment rates are generally higher than the national average. Unemployment is comparatively low, beneath the England rate of 4.0%.
However, beneath these headline figures are significant inequalities.
2. High Levels of Economic Inactivity
A key feature of Derbyshire’s labour market is economic inactivity, not unemployment. In 2025, around 1 in 5 working-age adults aged 16 to 64 were economically inactive. Long-term sickness is the leading cause of inactivity, mirroring national trends.
This group often experiences:
- poorer physical and mental health
- long-term conditions or multimorbidity
- barriers to returning to work
- greater risk of poverty
This matters because illness both causes and is worsened by being out of the labour market.
3. Unequal Distribution of Unemployment and Ill Health
While the countywide unemployment rate is low, some communities experience significantly higher unemployment. These include:
- former mining and industrial areas such as Bolsover, Shirebrook and Cotmanhay
- more deprived neighbourhoods across Chesterfield, parts of Erewash and Amber Valley
Residents in deprived areas are far more likely to have:
- multiple long-term health conditions
- poor mental health
- lifestyle-related risks such as smoking and obesity
These factors increase the likelihood of long-term unemployment and limit the ability to return to work, creating a cycle of disadvantage.
4. Health Inequalities Linked to Work and Income
Being in good-quality work improves:
- physical health
- mental wellbeing
- financial stability
- ability to live in warm, safe housing
- access to food and essentials
Conversely, unemployment or economic inactivity contributes to:
- increased stress, depression and anxiety
- chronic disease deterioration
- social isolation
- higher smoking and alcohol-related harm, noted as higher in deprived areas
These health inequalities widen gaps between Derbyshire’s most and least advantaged communities.
5. Rural Challenges and Access Barriers
Rural districts such as the Derbyshire Dales, High Peak and parts of North East Derbyshire face distinctive challenges:
- limited public transport
- longer travel distances to employment centres
- fewer local job opportunities
- more difficulty accessing healthcare
These deep-rooted barriers can push people out of the workforce even when unemployment is low.
6. Derbyshire’s Public Health Response
Derbyshire’s Public Health and partner organisations are increasingly focusing on:
- work as a determinant of health
- tackling poverty and improving financial wellbeing
- supporting people with long-term sickness back into work
- targeting deprived areas
1. Active Labour Market Policies (ALMPs)
Programmes such as job training, apprenticeships, work placements, and job-search assistance support unemployed individuals to develop skills and secure employment more rapidly. Evidence from OECD studies shows that well-designed ALMPs can shorten periods of unemployment and increase re-employment rates, particularly when programmes are tailored to local labour market conditions and individual needs.
Supported employment approaches, especially Individual Placement and Support (IPS), have a strong evidence base. IPS focuses on rapid entry into competitive employment with ongoing, personalised in-work support. Randomised controlled trials and international evidence demonstrate that IPS is significantly more effective than traditional vocational programmes for people with mental health conditions, with employment rates typically two to three times higher.
Local delivery models such as Connect to Work (C2W), Supported Employment Quality Framework (SEQF), Youth Guarantee Trailblazers (YGT) and IPS services in Derbyshire reflect this evidence by combining intensive employment support with health and wellbeing interventions.
2. Education and Skills Development
Enhancing access to quality education, technical training, and vocational pathways improves workforce employability and adaptability. Countries with strong vocational education and apprenticeship systems, such as Germany, consistently report lower youth unemployment rates, highlighting the effectiveness of skills development in reducing joblessness.
Evidence also suggests that combining skills training with supported employment models improves outcomes for individuals facing barriers to work, ensuring that newly acquired skills translate into sustained employment rather than prolonged training without progression into jobs.
3. Economic Stimulus and Job Creation
Government investment in infrastructure, public services, regeneration, and business incentives can stimulate economic demand and generate employment opportunities. During economic downturns, fiscal stimulus packages have been shown to reduce unemployment by creating short- to medium-term jobs while supporting local economies and population health.
Evidence indicates that job creation initiatives are most effective when aligned with employability and supported employment programmes, ensuring that new jobs are accessible to people who are unemployed or economically inactive due to health or social barriers.
4. Reducing Barriers to Employment
Policies that address structural barriers, such as discrimination, lack of affordable childcare, poor transport connectivity, and health-related barriers, enable wider participation in the labour market. Research shows that childcare subsidies and improved transport infrastructure increase employment rates, particularly among women and lower-income groups, helping to reduce structural unemployment and promote equity.
Supported employment models further reduce barriers by offering personalised adjustments, employer engagement, and in-work support. The Government’s Free Childcare for Working Parents scheme, providing up to 30 hours of free childcare per week for children aged 9 months to 4 years, has the potential to support parental employment when combined with effective job-matching and employment support.
5. Entrepreneurship Support
Supporting small business development through grants, mentoring, training programmes, and improved access to finance encourages job creation and local economic growth. Evidence suggests that targeted support for entrepreneurs from disadvantaged backgrounds can improve business sustainability and create additional employment opportunities within local communities.
6. Flexible Labour Markets
Balanced labour market regulations, such as flexible working arrangements combined with adequate social protections, encourage employers to recruit while supporting workforce stability and wellbeing. Evidence shows that flexibility, when paired with employment protections and in-work support, improves job retention, particularly for people with caring responsibilities or long-term health conditions.
• Causes
Unemployment occurs within a broader context shaped by multiple wider determinants. These factors influence who can access jobs, how many jobs are available, and how easily individuals can retain employment. Addressing these underlying determinants is essential for achieving sustainable reductions in unemployment and improving population health.
Education and Skills
Limited access to quality education and vocational training restricts skill development, making it harder for individuals to find and maintain employment. Areas with lower educational attainment frequently experience higher unemployment rates, contributing to ongoing health inequities.
In Derbyshire, attainment gaps are particularly evident in some former industrial communities such as Bolsover, Shirebrook and parts of Erewash, where fewer residents progress into higher education or advanced vocational pathways. These education gaps reinforce patterns of lower skills and reduced access to higher-quality employment.
Economic Conditions
The economic environment, including GDP growth, industrial development, and infrastructure investment, directly affects the availability of jobs. Areas with inadequate infrastructure or low levels of investment tend to have fewer employment opportunities.
In Derbyshire, the effects of deindustrialisation remain significant. Traditional industries such as coal mining, textiles and heavy manufacturing have declined sharply, leaving behind pockets of structural unemployment. Former mining areas in Bolsover, North East Derbyshire, Amber Valley and parts of Chesterfield remain among the most deprived communities in the county, with limited local job opportunities and slower economic recovery compared to more urbanised parts of the region.
Health and Wellbeing
Poor physical and mental health can severely limit an individual’s capacity to work, increasing vulnerability to unemployment. This can create a cycle where unemployment worsens health, and poorer health reduces employability.
In Derbyshire, long-term health conditions are more prevalent in certain communities, particularly ex-industrial areas, leading to higher rates of economic inactivity linked to ill health. Limited access to timely mental health support can further compound these challenges.
Housing and Environment
Inadequate housing or poor neighbourhood conditions can restrict access to employment due to transport barriers, digital exclusion, or social isolation. Environmental factors such as pollution or unsafe living conditions also undermine employability and overall wellbeing.
Derbyshire’s mix of urban and rural geography means housing and environment barriers differ across areas. Rural residents in districts such as High Peak, Derbyshire Dales and parts of North East Derbyshire often face long travel distances to employment hubs, limited public transport and higher housing costs, all of which hinder access to work.
Additional Causes of Unemployment
- Economic downturns and recessions: slower economic growth leads to reduced production and job losses. In Derbyshire, the closure of major pits such as Markham Colliery in 1993 and Shirebrook Colliery resulted in thousands of redundancies within a short period.
- Technological change: automation and emerging technologies can displace workers. Derbyshire’s hosiery and textiles industry declined due to automation, global outsourcing and rising production costs, leaving many workers without transferable skills.
- Structural unemployment: a skills mismatch between workers and employer needs. Mining skills were not easily transferable when collieries closed, and new jobs were often located in different sectors or towns.
- Limited public transport: rural areas such as the Peak District, High Peak and rural North East Derbyshire have infrequent or expensive bus services, making commuting to employment centres such as Derby, Chesterfield and Sheffield difficult, especially for young people and those on low incomes.
- Seasonal unemployment: tourism and hospitality fluctuate by season. Around 9% of Derbyshire’s workforce is employed in hospitality, increasing susceptibility to off-season unemployment in areas like the Derbyshire Dales and High Peak.
- Cyclical unemployment: employment levels fall during economic slowdowns and rise during recovery.
- Frictional unemployment: short-term unemployment when people move between jobs or enter the labour market.
- Government policies: taxation, minimum wage levels or labour regulations can influence hiring decisions.
- Globalisation: international competition and outsourcing can lead to local job losses, particularly in manufacturing and textiles, which historically affected Derbyshire.
Wider determinants create the context in which unemployment occurs. They shape who can access employment, how many jobs are available, and how easily individuals can enter and remain in work. Addressing these broader factors is essential for achieving sustainable reductions in unemployment.
Bringing Together Key Stakeholders
Collaboration between government, businesses, educational institutions, health services, and community organisations helps align efforts to create and sustain employment opportunities.
A 10-year local employment strategy, 2025 to 2035, led by the East Midlands Combined County Authority in partnership with the Department for Work and Pensions, NHS Integrated Care Boards, local authorities, colleges, employers, and community organisations, supports the national Get Britain Working framework. The strategy is tailored to local labour market needs and challenges, with the ambition of raising employment levels to 80% by 2035.
Improving Skills and Training
Collaborative partnerships ensure that training programmes are relevant, responsive, and effective. When employers work closely with education and training providers, they can help shape courses that develop in-demand skills, reducing the skills mismatch that drives structural unemployment.
This is a priority within the local plan, with a focus on increasing access to job-search support, skills development, and wellbeing services, particularly for groups facing barriers to work, including disabled people, those with health conditions, carers, and young people.
Creating Job Opportunities
Joint initiatives, such as public-private partnerships, can support infrastructure investment, regeneration projects, and community-based programmes that create new employment opportunities. Collaboration also enables small businesses and start-ups to grow through shared resources, funding, and expertise.
Coordinating Support Services
Unemployed individuals often require more than access to job vacancies. Many need additional support with childcare, transport, mental health, confidence-building, or CV development. Collaborative networks enable the delivery of holistic support, making it easier for individuals to move into and sustain employment.
Improved coordination across public services, including Jobcentres, health services, colleges, local authorities, and employers, can streamline support pathways, reduce duplication, and improve outcomes.
Latest Derbyshire Data
Trend Data
The current fetch supports local multi-year trend charts for model-based unemployment and economic inactivity. The ill health inactivity indicator currently returns an England-only series, so it is shown as national context until the local fetch can be checked.
Prevalence Maps of Derbyshire
The maps below illustrate various geographies for Derbyshire. LSOAs and MSOAs are geographical divisions used for statistical purposes, allowing for more detailed analysis of local data. In these maps, you can explore various health indicators and data for Derbyshire, providing valuable insights into the area’s health and wellbeing.
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In the top right of the map, you’ll find the ‘Layer Control’ icon. This is an easy way to customise what you see on the map visualisation. Click the ‘Layer Control’ to choose which information is displayed on the map. Pick the indicator that interests you the most, and the map will transform accordingly. |
Slope Index
This chart illustrates the differences in health and lifestyle factors across areas in Derbyshire, from the most deprived (decile 1, red) to the least deprived (decile 10, green). As you move from left to right on the chart (from more deprived to less deprived areas), the line shows whether these factors are becoming more or less common. Essentially, it’s a way to see how living in wealthier or poorer areas affects the prevalence of these factors.
Further Analysis & Assessments
Derbyshire Joint Strategic Needs Assessment (JSNA) involves a thorough examination of a specific health problem, exploring its causes, consequences, and underlying factors. It combines various data sources, collaboration with stakeholders, and rigorous analysis to generate insights for evidence-informed interventions and policy changes.
More Information & Resources
Here is a list of useful resources and information related to unemployment, worklessness, and access to employment support. These materials are intended to help professionals, partners, and communities understand the topic and connect people with relevant services and guidance.
Contributors
Carmel Chaplain, Public Health Lead

Social Determinants of Health
Unemployment reduces financial resources, undermining housing stability, nutrition, and the ability to afford healthcare or necessary medications. These factors deepen health inequalities, particularly among vulnerable populations who already face systemic barriers. Across Derbyshire, life expectancy can differ by up to 13 years between neighbourhoods, reflecting intertwined effects of poverty, employment, education, and health access.