There are 800,000 more people out of work due to health problems now than there were in 2019. Mayfield said the review stated that, "without decisive action to address this trend, projections show we are on track to add another 600,000 by 2030".
He said that the increase in 16 to 34-year-olds with a mental health condition who are economically inactive due to long-term sickness is "particularly concerning", rising by 190,000 (76 per cent) between 2019 and 2024.
"The state faces an unsustainable cost from economic inactivity due to ill health of £212 billion per year, equivalent to 7 per cent of GDP or nearly 70 per cent of the income tax we pay, through lost output, increased welfare payments and additional burdens on the NHS," Mayfield said.
He also warned Labour's overhaul of workers rights could increase risk aversion among bosses. He said: "Many employers told us they fear disputes when managing health issues, especially when employees can no longer perform their original role."
He added: "With the expected introduction of day-one employment rights, these fears may grow. We therefore recommend fast-tracking alternative dispute resolution (ADR) approaches alongside the reforms."
Mayfield said there is "broad recognition that Britain is facing a quiet but urgent crisis", with ill health being one of the biggest drivers of economic inactivity in the UK. He found that, if a person is out of work for less than a year, they were eight times more likely to return to employment than someone who had been unemployed for two years.
Among its recommendations, the review called for the adoption of a workplace health provision, which it described as a non-clinical case management service that supports employees and line managers across a so-called healthy working lifecycle.
More than 60 employers -- including the British Beer and Pub Association, Burger King, John Lewis and Google UK -- have expressed interest in becoming so-called vanguard employers to pioneer the overall new approach.
This would involve a three-year phase focused on how to address mental health at work, retention of older people in work, and improved participation and retention of disabled people in work.
* Generation gap as unemployment hits level last seen in pandemic
Mayfield said: "There is no viable scenario where more public spending alone can solve this. Instead, government must enable and incentivise employers and employees to act."
He said employers must do more to help their employees, but he warned that workers must play their part too. He wrote: "Work can be demanding. Setbacks are part of life. Health and work are not always easy partners, but they are mutually reinforcing."
He said that, while supportive workplaces matter, "so does personal responsibility", and added: "Frustration with work, still less 'I hate my boss' syndrome, are not health conditions. Disengaging from work and potential support, or relying on welfare as an alternative to work, can set people on a path towards detachment and dependency, rather than recovery and participation."
Mayfield's report set out how Britain lags behind its European comparators. In the UK about 20 per cent of working-age adults are out of work and not looking for work, compared to 14.5 per cent in the Netherlands, 15.9 per cent in Sweden, and 17.7 per cent in Denmark.
On current trends, it means the welfare bill will hit £65 billion by 2030.
Mayfield also highlighted fit notes -- sometimes known as sick notes -- as "often problematic", becoming a "barrier to contact, further embedding distance between employer and employee".
The review said the economic cost at stake "is enormous", citing the estimated £85 billion a year in lost output to employers, as well as the additional burden in welfare payments and NHS demand of around £47 billion each year.
It noted the "wider cost to the economy of lower participation, and the human and social costs of lost opportunity, stalled careers, and reduced life chances".
Sir Charlie said: "Britain is sliding into an avoidable crisis. Ill health has become one of the biggest brakes on growth and opportunity. But this is not inevitable."
Pat McFadden, the work and pensions secretary, said Mayfield's message is "crystal clear: keeping people healthy and in work is the right thing to do and is essential for economic growth".
He added: "Business is our partner in building a productive workforce -- because when businesses retain talent and reduce workplace ill health, everyone wins.
"That's why we're acting now to launch employer-led vanguards as part of the plan for change, driving economic growth and opportunity across the country."