Mental Health at Workplace and Economic Productivity | 06 Feb 2025

Source: ET

Why in News?

The Economic Survey 2025 highlighted the significant impact of workplace culture, working hours, and lifestyle on mental health and worker productivity.  

• It stressed the urgent need for improved workplace conditions and healthier lifestyles to boost employee well-being, which in turn, can enhance economic growth. 

What are the Key Factors Affecting Mental Health? 

• Workplace Culture: A positive workplace culture boosts mental well-being. The survey finds that employees with good relationships with managers and colleagues report 33% higher mental well-being scores.  
  • A sense of purpose at work further enhances well-being. 
• Workload Management: Excessive workloads negatively impact mental health. Employees with manageable workloads report 27% greater mental well-being than those overwhelmed by work.  
  • Long working hours (55-60 per week) increase stress and anxiety. 
• Impact of Remote Work: While remote work offers flexibility, fully remote employees report 17% lower mental well-being scores than those in-office or in hybrid models.  
  • Social interaction at work is crucial for mental health. 
• Lifestyle Choices and Mental Well-being: 
  • Dietary Choices: Individuals who avoid ultra-processed and packaged foods report better mental well-being. 
  • Physical Activity: Lack of exercise is linked to higher stress levels and lower productivity. 
  • Social Media Usage: Excessive social media consumption is correlated with declining mental health. 
  • Family Ties: Strong family relationships contribute significantly to better mental well-being. 

What are the Key Implications of Poor Mental Health on the Economy? 

• Lost Productivity: Mental health disorders such as depression and anxiety contribute to reduced work efficiency, absenteeism, and presenteeism (working while unwell). 
  • As per WHO, globally, depression and anxiety lead to a loss of 12 billion work days annually, amounting to an economic cost of nearly USD 1 trillion.  
    • In India, this translates to a loss of approximately Rs 7,000 per affected worker per day. 
• Absenteeism and Turnover: Mental health conditions can result in higher rates of sick days, early departures, and increased job turnover, further disrupting workflow and incurring costs associated with recruitment and training replacements. 
  • Economic Survey 2024-25 noted that individuals with poor mental well-being lose about 15 working days per month, compared to 2-3 days for healthier individuals.  
• Increased Healthcare Expenditure: Poor mental health leads to higher healthcare costs due to frequent medical visits, hospitalizations, and long-term treatment, increasing the burden on public health infrastructure, diverting resources from other critical areas. 
• Decline in Innovation and Entrepreneurship: Poor mental health hampers creativity, risk-taking, and decision-making, slowing technological and business advancements, especially in high-performance sectors facing stress and burnout.

What are Suggestions Provided by Economic Survey 2024-25? 

• Workplace Reforms: Foster a supportive work culture by improving interpersonal relationships, reducing workplace stress, and promoting a sense of purpose.  
  • Implement work-hour regulations to prevent burnout and enhance productivity. 
• Flexible Work Models: Encourage hybrid work policies to balance flexibility and social interaction, mitigating the negative effects of full remote work. 
• Health and Lifestyle Interventions: Employers and the government should promote healthy eating, physical activity, and digital detox to improve mental well-being. 
• Awareness and Mental Health Programs: Implement large-scale mental health awareness initiatives, counseling services, and employee assistance programs to support workplace well-being. 
• Policy and Legislative Measures: Strengthen occupational health policies by integrating mental health considerations into labor laws, ensuring workplaces adopt mental health-friendly practices. 

Conclusion 

The Economic Survey 2024-25 highlights mental well-being as a national priority. A healthy workforce is key to productivity, resilience, and economic growth. Prioritizing workplace mental health through supportive policies will strengthen India’s path to becoming a global economic powerhouse.