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The impact of mental health on Australia’s economy
Not only is mental illness affecting one in five Australians, it’s also costing our economy $60 billion per year, or the equivalent to 4 per cent of the nation’s GDP.
The impact of mental health on Australia’s economy
Not only is mental illness affecting one in five Australians, it’s also costing our economy $60 billion per year, or the equivalent to 4 per cent of the nation’s GDP.
The Shared Value Project has crunched the numbers, finding that businesses alone are losing $13 billion annually due to mental illness’ impact on wages and productivity.
For Allen Fels, a commissioner for the Royal Commission into Victoria’s Mental Health System, “the prevalence of mental illness and its impact on our weakening economic growth rate calls for an urgent response from business”.
He said there are benefits to be found by businesses that do react to the real impact of mental illnesses.
“For the industries most impacted by poor mental health, such as financial services, this is not only a competitive business opportunity, but vital risk mitigation,” Mr Fels said.
He cited leading financial services and not-for-profit organisations as having seized the opportunity to consider how they could collectively address the issue while also strengthening their bottom line.
“Companies rely on the productivity and prosperity of their stakeholders, and they limit their success if this isn’t taken into account,” Mr Fels also noted.
According to Shared Value Project’s CEO, Helen Steel, improving the operating environment is critical to business sustainability and resilience.
She outlined that “addressing mental ill-health can increase employee efficiency and attendance, improve customer engagement and financial stability, and create more thriving communities to do business with”.
“Ultimately, healthier stakeholders equate to a healthier bottom line,” she continued.
The report acknowledged that businesses have implemented policies and compliance initiatives for treatment programs; however, few businesses are investing in preventative approaches.
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