Health and the Economy: The Impact of Wellness on Workforce Productivity in Global Markets Report to the US Chamber of Commerce Bruce Rasmussen Kim Sweeny.

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Presentation transcript:

Health and the Economy: The Impact of Wellness on Workforce Productivity in Global Markets Report to the US Chamber of Commerce Bruce Rasmussen Kim Sweeny Peter Sheehan Victoria Institute of Strategic Economic Studies Victoria University, Melbourne Delivered by Professor Bruce Rasmussen Director, Victoria Institute of Strategic Economic Studies Washington DC April 2016

Ageing is rapidly increasing the proportion of older workers in many countries Some countries have a rapidly ageing workforce eg China and some other developing countries. Some countries, e.g. Japan, and the United States, already have ‘old’ workforces. Both types of countries need older experienced workers. Therefore, keeping older workers healthy and working becomes an issue for economic growth and development. 2 Source: International Labour Organization 2016, ILOSTAT Database.

The proportion of older workers in developing countries will continue to increase significantly 3 Countries such asIndonesia, andMexico with youngworkforces willexperience a rapidin increase ofabout 5 percentagepoints in theproportion ofworkers aged between 2015and 2030.`

Burden of disease: Non-communicable diseases (NCDs) 4 NCDs (cardiovascular diseases, cancer, chronic respiratory diseases, diabetes and mental illness) are generally thought of as a challenge only for developed economies, when in reality the disease burden of NCDs is as high among DEVELOPING economies as developed economies. Source: Institute of Health Metrics and Evaluation (IHME) 2015, GBD Data. Among the countries surveyed, NCDs, as measured by years lived with disability (YLDs) are as high for developing as developed countries. NCDs are 86% of the total morbidity disease burden.

The double challenge: Ageing and the burden of disease 5 The burden of NCDsrises steeply withage. On average theburden at age 65 isabout 50% higherthan at age 45.

Productivity loss % GDP Presenteeismaverages 3.3%of GDPcompared with1.3% forabsenteeismand 2.4% forearly retirement Presenteeism, that is, sick but at work, is a far greater cost to productivity than absenteeism. Absenteeism, presenteeism and early retirement, 2015

Over the period to 2030 most countries face rapidly increasing economic loss due to absenteeism, presenteeism and early retirement

Key takeaways 9898