Burnout: Work is making Australians sick, report warns

Long hours, heavy workloads and growing workplace pressures are leaving many Australians struggling with burnout. Now, new research suggests the cost extends far beyond individual wellbeing, with workplace-driven mental ill-health costing the economy billions each year.

For some Australians, workplace stress doesn't end when they log off.

Long hours, mounting workloads, constant notifications and pressure to do more with less are leaving many workers feeling exhausted and overwhelmed. In some cases, the impact can be severe enough to force people to take time away from work, affecting not only their health but their finances too.

Now, new research suggests the problem is also taking a massive economic toll.

A report from Mentally Healthy Workplaces Australia (MHWA), Australia's Economic Case for Mentally Healthy and Safe Workplaces, found workplace-driven mental ill-health is already costing Australia's economy $12 billion a year in lost gross domestic product (GDP). Without action, that figure is expected to exceed $27 billion annually within the next 15 years.

The report found workplace-driven mental ill-health is a leading contributor to Australia's productivity slowdown.

When work becomes too much

Burnout, stress and anxiety can have consequences far beyond the workplace.

Time away from work can affect household finances, while ongoing treatment and recovery can create additional costs. Previous reporting by Money has highlighted how some Australians feel unable to step back from demanding jobs because of mortgages, rent and rising living costs.

According to the MHWA report, lost productivity accounts for close to 54% of the direct economic costs associated with workplace-driven mental ill-health.

This includes absenteeism, presenteeism, staff turnover and lower workforce participation.

The report says these costs are initially borne by employers before flowing through to workers' compensation systems, life and health insurers, and government-funded support services.

Why experts say the problem is getting worse

MHWA executive director and co-lead Margo Lydon says workplace-driven mental ill-health is already having a significant impact on both workers and the wider economy.

"Workplace-driven mental ill-health is not a future issue - it is a social and financial crisis that is already imposing substantial, and rapidly growing, burdens on Australia's economy and workplaces," Lydon says.

"The economic cost of inaction clock is ticking rapidly."

She says the shifting labour market, including automation and the rise of artificial intelligence (AI), will only intensify pressures on workers.

AI and changing workplaces may add pressure

The report points to major changes in the labour market, such as automation and AI, as factors that could increase psychosocial pressures on workers in the years ahead.

Lydon says a co-ordinated national response is needed to prevent the problem from worsening.

"There is power in a nationally co-ordinated approach to action," she says.

She pointed to Australia's road safety efforts as an example of how a long-term national strategy can reduce harm.

"Road fatalities were considered inevitable until Australia introduced its first national road safety strategy in 1992, with sustained investment in evidence, education, infrastructure, and regulation. The result is a 60% decline in road deaths," she says.

The cost of doing nothing

Lydon says workplace mental health now requires the same type of long-term, prevention-focused approach.

"Workplace mental health, safety, and wellbeing now requires the same long-term, prevention-led, and co-ordinated system-wide approach to address the problem. We cannot just continue to shift the cost - we urgently need preventative and practical action, nationally."

While the report focuses on the economic impact, the findings also highlight a growing challenge facing many Australian workers.

As workplaces evolve and technology continues to change how people work, MHWA argues that preventing workplace-driven mental ill-health will be critical not only for productivity, but for the wellbeing of workers, their families and the broader community.

A version of this report previously appeared on Financial Standard

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