The move has been broadly welcomed, but some business groups said Labour's Employment Rights Bill included some disincentives to hiring people with existing illnesses.

One in five working age people were out of work, and not seeking work, according to the report, which was commissioned by the Department for Work and Pensions but produced independently.

Without intervention, another 600,000 people could leave work due to health reasons by the end of the decade.

Sir Charlie said sickness cost employers £85bn a year through issues including lost productivity and sick pay, but it also cost the broader economy.

"Work is generally good for health and health is good for work," he told BBC Breakfast.

He added that the rise in sickness is driven by a "surge" in mental health issues among young people and muscular skeletal issues, aches and join pain in older people that was leading them to leave work.

"For employers, sickness and staff turnover bring disruption, cost and lost experience," he said. "For the country, it means weaker growth, higher welfare spending and greater pressure on the NHS".

The state spends £212bn per year on illness-related inactivity, or nearly 70% of income tax, through lost output, increased welfare payments and additional burdens on the NHS.

People could be encouraged to stay in work if health is viewed as "a shared responsibility between employers, employees and health services", he said.

He said his taskforce will work with GPs who say they find it difficult to judge whether or not a person is suitable to work while they are ill, but are asked to issue sick notes by patients.