As well as harming growth, Mr Kupelian said ill health was also threatening the Government’s bid to boost the employment rate from 74.4pc to a record high of 80pc.
He said: “It will be virtually impossible to push employment rates higher from the current 74pc, if we don’t tackle new emerging issues such as mental health which seems to be much more prevalent amongst the workers of the future.”
Mr Kupelian estimated that if the UK could reduce its rate of young people who are not in employment, education or training (NEETs) to match the lowest regional rate, it would give the economy a significant boost.
“We calculate that UK GDP could increase by around one percentage point if the national NEET rate matches that of the South West, which is the best-performing region in the country,” he said.
This would be a significant contributor to the Government’s goal of growing GDP per head at the fastest rate in the G7.
“There is a blueprint for change evidenced by other OECD countries with low NEET levels; provide robust vocational training and apprenticeship systems, alongside initiatives to set young people up for a smooth transition from education to work through regimes that connect students with industry,” said Mr Kupelian.
“Building aspiration for young people who currently feel they are without will be crucial for the UK to reverse NEET levels.”