The cost of work-related mental health conditions to the UK economy has doubled since last year, with the proportion of people reporting poor mental health increasing over the past 12 months.
The annual AXA Mind Health Study, which looks at the wellbeing of thousands of working-age people across 16 countries, found that lost productivity owing to mental health conditions cost UK organisations £57.4bn last year, more than double the £28bn estimated in 2023’s report.
A further £26bn was lost to the UK economy from workers taking sick days, while around £18bn was lost from workers who chose to leave their jobs altogether.
The combined cost of poor wellbeing and sickness absence to UK businesses was £102bn in 2023, AXA found.
Mental health cost to UK economy
Sharing staff data in a mental health emergency
Thirty-seven per cent said they suffered from a mental health condition, up from 33% in 2023, while three-quarters experienced signs of poor wellbeing such as trouble sleeping, stress, lack of confidence and a loss of interest in usual activities.
Twenty per cent of UK respondents said they were struggling with their mental health and 33% said they were “languishing”. Only 18% of UK workers described themselves as “flourishing”, well below the 24% global average.
“In the UK we are seeing a growing number of people battling with poor mind health and, as people spend a large proportion of their lives working, a supportive workplace environment plays a critical role in addressing this,” said AXA UK and Ireland CEO Tara Foley.
“Research shows that workplace habits are a significant factor, like people comparing themselves unfavourably with their colleagues. The poor mind health associated with this behaviour comes at a huge cost to the UK and global economies, and employers have a duty to respond to this for the benefit of their employees and the wider society.
“As an employer, we know that the environment you create for people to work in is important. At AXA we strive to create a workplace that fosters positive mind health by providing mental health support and strong employee networks. This helps prevent people from struggling with their mind health, enables them to recognise when they need support and provides them with tools to enable them to move towards a more positive state of mind.”
AXA’s survey of 16,000 people aged 18 to 74 spanned 16 countries across Europe, Asia and the Americas. It was supplemented using data from the Centre for Business and Economic Research.
A supplementary AXA poll of 2,000 UK employees found that many workers regularly compare themselves to their peers, which has negatively affected the mental health of 51%. Job performance, clothing and work ethic were among the top things workers judged themselves on compared to others.
Dr Alex George, the Department for Education’s youth mental health ambassador and former NHS doctor, expressed particular concern about the mental health of young people, and suggested they should to be able to access professional mental health services if needed.
Research shows that workplace habits are a significant factor, like people comparing themselves unfavourably with their colleagues. The poor mind health associated with this behaviour comes at a huge cost to the UK and global economies” – Tara Foley, AXA
“A 20-year-old today has lived their formative years not only in a global pandemic but also in a time of geopolitical instability, a cost of living crisis, job insecurity as well as growing concerns about climate change. If living through lockdowns weren’t difficult enough, there have also been huge changes in technology, social media and cultural norms,” he said. “It’s little surprise that many 18-to-34-year-olds feel extremely anxious, stressed and alone.”
A separate report from health tech firm Telus found that one-third of UK workers have “high risk” mental health, with 30% of this group reporting diagnosed anxiety or depression.
It found that workers under 40 are more than 80% more likely than workers over 50 to lack trusted workplace relationships, which Telus claimed put them at a higher risk of loneliness.
“The Telus Mental Health Index findings reflect a concerning reality, in particular for our younger workers. It also impacts businesses as loneliness and social isolation negatively impact both health and workplace productivity,” said Paula Allen, global leader, research and client insights at Telus Health.
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“Rapid societal changes, alongside diminishing social support, are taking their toll. Additionally, there are challenges like inflation, housing affordability and job loss risks that are clear stressors, especially at the start of a person’s career when there is typically less financial stability.
“Organisations can help by focusing on building a culture of trust, which counters isolation, and highlighting their health, personal and financial programmes, which offer crucial support.”
