Lack of sleep costs US economy up to $411 BILLION per year, report claims

November 30, 2016

Researchers analyzed the economic impact of sleeplessness on nations
They contrasted business efficiency reports with national sleep data
The study found the US suffers more than UK, Canada, Germany, Japan
In total, the US loses 1.2m working days a year to inefficient or absent employees who are exhausted from a lack of sleep, costing $411bn

Mia De Graaf For Dailymail.com

Published:
03:00 EST, 30 November 2016

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Updated:
14:26 EST, 30 November 2016

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A lack of sleep among the U.S. working population is costing the economy up to $411 billion a year, a new report warns.

Researchers consulted national business reports and peer-reviewed sleep data from five different countries to predict the economic effects of sleeplessness.

They found America to suffer the most from a tired workforce, losing just over 1.2 million working days a year to exhaustion – either from workers taking days off or not performing at their prime.

The study, by the non-profit research firm the RAND Corporation, also warns a lack of sleep drastically raises mortality risk.

The US loses 1.2m working days a year to exhausted or absent employees, a study claims

‘Improving individual sleep habits and duration has huge implications, with our research showing that simple changes can make a big difference,’ said lead author Marco Hafner.

‘Our study shows that the effects from a lack of sleep are massive.

‘Sleep deprivation not only influences an individual’s health and wellbeing but has a significant impact on a nation’s economy, with lower productivity levels and a higher mortality risk among workers.’

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The study defines ‘poor sleep’ as less than six hours a night, while the optimum amount is somewhere between seven and nine hours.

Those who do not reach the six-hour mark have a 13 percent higher mortality risk than people who sleep eight hours, they found.

The ones in between – with about six-and-a-half hours’ sleep – also suffer; they have a 7 percent higher mortality risk than their better-rested colleagues.

In total, the U.S. loses just over 1.2 million working days a year due to sleep deprivation among its working population.

Productivity losses at work occur through a combination of absenteeism, employees not being at work, and presenteeism, where employees are at work but working at a sub-optimal level.

The study – ‘Why Sleep Matters – The Economic Costs of Insufficient Sleep’ – also chronicles the economic losses of sleeplessness in the UK, Canada, Germany, and Japan.

The US has the biggest financial losses (up to $411 billion, which is 2.28 percent 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 percent of its GDP, and around 600,000 working days lost).

Germany (up to $60 billion, which is 1.56 percent of its GDP, and just over 200,000 working days lost) and the U.K (up to $50 billion, which is 1.86 percent 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 percent of its GDP, and just under 80,000 working days lost).

Radner insists small changes can make a big difference.

‘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 U.S. economy,’ he explains.