Workplace burnout is costing Australia $12 billion a year, report warns

Personal finance

Workplace-driven mental ill-health is costing the Australian economy about $12 billion a year in lost GDP, according to a report from Mentally Healthy Workplaces Australia.

Without action, the report expects that to pass $27 billion a year within 15 years. It names the problem as a leading contributor to the country’s productivity slowdown.

Lost productivity makes up close to 54% of the direct costs, including absenteeism, presenteeism, staff turnover and lower workforce participation. Employers carry the costs first, before they flow on to workers’ compensation, insurers and government-funded support services.

Executive director Margo Lydon says the shift towards automation and AI is likely to add pressure on workers. She is calling for a nationally co-ordinated, prevention-focused approach, comparing it to the road safety strategy that helped cut road deaths by 60%.

What it means for your money

Time off work for burnout can hit household budgets, especially with a mortgage or rent. It’s worth knowing your leave entitlements and any income protection cover before stress builds, and talking to your employer early if workloads are unsustainable.

Source: Money Magazine

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