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Lack of sleep drains billions from major economies each year

The U.S. economy loses $411 billion annually (2.3% of its GDP) due to sleep deprivation-related productivity declines, while Japan loses $138 billion, the UK $50 billion, Germany $60 billion, and Canada $21 billion.

• Sleep deprivation is a global issue affecting millions, with consequences that extend beyond personal well-being to economic productivity, imposing a significant financial burden on the global economy.

Beyond reduced productivity, sleep deprivation increases the likelihood of workplace errors, road accidents, and chronic health conditions, adding strain to healthcare systems and social services.

 

In today’s fast-paced world, some take pride in late nights and long work hours, unaware that this habit not only harms their health but also lowers productivity, raises accident rates, and weakens national economies, Al Qabas newspaper reported.

Sleep deprivation is a global issue affecting millions, with consequences that extend beyond personal well-being to economic productivity, imposing a significant financial burden on the global economy.

Numerous studies have shown that lack of sleep leads to decreased job performance, higher absenteeism rates, and an increased risk of workplace and road accidents.

Advanced economies lose billions due to poor sleep quality among their workforces

Quality sleep is essential for maintaining optimal workplace performance, yet millions worldwide suffer from sleep deprivation due to rising life pressures.

Studies indicate that major economies incur losses amounting to billions of dollars annually due to reduced workforce efficiency caused by sleep deprivation.

According to a report by the Rand Corporation, advanced economies such as the United States, Japan, and Germany lose billions each year due to poor sleep quality among their workforces.

The report estimates that the U.S. economy loses approximately $411 billion annually—equivalent to 2.3% of its GDP—due to decreased productivity linked to sleep deprivation. Japan incurs losses of around $138 billion annually.

Other economies are also significantly impacted, with the UK losing $50 billion, Germany $60 billion, and Canada $21 billion due to insufficient sleep.

In Australia, a study published in the journal Sleep estimated that the total economic burden of insufficient sleep in 2016–2017 was $45.2 billion, including healthcare costs and lost productivity.

Sleep deprivation raises likelihood of workplace errors

Beyond reduced productivity, sleep deprivation increases the likelihood of workplace errors, road accidents, and chronic health conditions such as heart disease and depression, adding strain to healthcare systems and social services.

Sleep-deprived employees often struggle with concentration, are more prone to mistakes, and experience decreased motivation, creativity, and communication skills. Additionally, exhaustion heightens the risk of burnout, leading to higher absenteeism and employee turnover, which negatively affects organizational stability and productivity.

Chronic sleep deprivation is linked to serious health issues, including obesity, diabetes, and mental disorders, which not only harm employee well-being but also drive up medical costs, reduce productivity, and increase compensation claims.

Studies show that workers who sleep less than six hours a night are at a higher risk of workplace accidents and injuries. Experts emphasize that this issue can be addressed through awareness campaigns on healthy sleep, workplace policies that promote better rest, and medical interventions to improve sleep quality—leading to significant economic and health benefits.

Drowsy driving a major risk factor in thousands of accidents each year

Drowsy driving is a major risk factor in thousands of accidents each year, as individuals who sleep less than seven hours a night are more likely to cause traffic collisions.

Fatigue impairs concentration, slows reaction times, and affects decision-making, all of which increase the likelihood of an accident. A study by the American Automobile Association’s Auto Club found that drivers who sleep only four to five hours a night have a fivefold higher accident risk than those who get seven hours of sleep.



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