Mental health-related productivity losses in the UK are forecast to exceed 5 per cent of GDP by 2030, equivalent to around £170 billion annually and a higher share than in other comparable markets.
According to Zurich’s new global report, The Value of Mental Health, in the UK, employment rates are 29 percentage points lower for people with a mental health condition at 53 per cent compared with 82 per cent for those without.
The report estimates the value of wellbeing lost to mental health conditions is around seven times higher than spending on formal mental health services. The UK currently invests around 1.4 per cent of GDP, £42 billion in mental health support systems, but the report suggests this is not sufficient to address the scale of the challenge.
It predicts that 32 per cent of working-age adults will be living with a mental health condition by 2030, which is the highest rate among comparable high-income economies. This is estimated to reach 64 per cent for teenagers aged between 15 and 19 within five years.
The report notes that anxiety disorders, 49 per cent and major depressive disorder, 26 per cent, account for the majority of diagnosed conditions. Additionally, mental health conditions are being identified early, with 41 per cent of 15–19-year-olds experiencing an anxiety disorder, which is the highest of all markets analysed.
But at the same time, almost one million young people aged 16–24 are currently not in education, employment or training, the highest level in five years. The report argues that addressing the issue will require stronger links between mental health support and workforce participation, as well as earlier intervention.
Zurich UK head of market engagement Peter Hamilton says: “The rise in youth mental health care needs is the start of a wave that will shape the UK’s workforce for a generation. Early intervention is key, and it’s the only way to stop today’s challenges from becoming tomorrow’s crisis.
“We know that those who are off work for less than twelve months are nearly five times more likely to return than those off for longer, highlighting the need for rapid employer-led intervention and structured return-to-work support. Unless we intervene, mental health risks will become a persistent drag on productivity, economic growth and social mobility.”
Sojan Joseph, MP for Ashford, Hawkinge and the Villages and Chair of the All-Party Parliamentary Group on Mental Health, said: “The rising rates of mental health and high numbers of young people not in education, employment or training is very concerning and the two are closely linked.
“Young people who are NEET are more likely to suffer from mental health conditions, such as depression or anxiety, whilst also missing out on the social, structural, and therapeutic benefits that education or work can offer. On top of this, the cost of economic inactivity is deeply concerning.
“We as legislators have a duty to ensure that the employment gap is closed, the cost of economic inactivity is cut, reduce mental health waiting lists, and deliver parity of esteem between mental and physical health.”