The cost of workplace absence increased by more than £1 billion last year even though fewer working days were lost.

The number of working days lost compared with 2000 fell by 16 million to 176 million, the lowest figure recorded by the CBI since its records began in 1987.

Employees were off work for an average of seven days a year, according to a survey of 668 firms.

The cost of absence increased from £10.7 billion in 2000 to £11.8 billion last year.

CBI director of human resources policy Susan Anderson said: "Concerns about job security and better absence management led to a fall in days lost but firms say costs increased.

"Firms are under greater competitive pressures and, with less slack in their operations, providing cover is likely to mean extra spending on overtime or temps."

Employers believed most absence was for genuine reasons such as sickness, although some workers took time off because of family responsibilities.

Average absence rates have fallen by two days a year since 1991.

Workers in the public sector took an average of ten days off last year, three more than staff in private firms. The gap between the two sectors has widened in recent years.

Absence rates among non-manual workers has fallen for four consecutive years and stood at 5.5 days last year.

Manual workers took more time off at almost nine days last year.

Workers in larger firms took twice as many days off as those in smaller companies.

Yorkshire and Humberside had the worst record for manual workers and Northern Ireland for non-manual.

Absence rates were lower in firms where senior managers took responsibility for managing the issue.