Lack of sleep costs the economy billions

A study has quantified the economic cost of lack of sleep amongst workers in five different countries.

The study, ‘Why Sleep Matters — The Economic Costs of Insufficient Sleep’, was carried out by RAND Europe and studied workers in the US, UK, Canada, Germany and Japan.

It found that sleep deprivation leads to a higher mortality risk and lower productivity levels among the workforce, putting a significant damper on a nation’s economy.

In the US alone, just over 1.2 million working days are lost every year due to sleep deprivation among employees.

“Improving individual sleep habits and duration has huge implications, with our research showing that simple changes can make a big difference,” said Marco Hafner, a research leader at RAND Europe and the report’s main author.

“For example, if those who sleep under six hours a night increase their sleep to between six and seven hours a night, this could add $226.4 billion to the US economy.”

A person who sleeps on average less than six hours a night has a 13% higher mortality risk than someone sleeping between seven and nine hours, researchers found, while those sleeping between six and seven hours a day have a 7% higher mortality risk. Sleeping between seven and nine hours per night is described as the ‘healthy daily sleep range’.

The US has the biggest financial losses (up to $411 billion, which is 2.28% of its GDP) and most working days lost (1.2 million) due to sleep deprivation among its workforce. This was closely followed by Japan (up to $138 billion, which is 2.92% of its GDP, and around 600,000 working days lost).

Germany (up to $60 billion, which is 1.56% of its GDP, and just over 200,000 working days lost) and the UK (up to $50 billion, which is 1.86% of its GDP, and just over 200,000 working days lost) have similar losses. Canada was the nation with the best sleep outcomes, but still has significant financial and productivity losses (up to $21.4 billion, which is around 1.35% of its GDP, and just under 80,000 working days lost).

To improve sleep outcomes, the report outlines a number of recommendations for individuals, employers and public authorities.

Individuals should set consistent wake-up times, limit the use of electronic items before bedtime and ensure they undertake physical exercise during the day.

Meanwhile, employers are urged to recognise the importance of sleep and their role in its promotion, by designing and building brighter workspaces with facilities for daytime naps. They can also combat workplace psychosocial risks and discourage the extended use of electronic devices after working hours.

It was recommended that public authorities support health professionals in providing sleep-related help, encourage employers to pay attention to sleep issues and introduce later school starting times.

Access the report at http://www.rand.org/pubs/research_reports/RR1791.html.

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