Mental health and employment: some economic evidence
| Pages | 13-24 |
| Date | 01 March 2004 |
| Published date | 01 March 2004 |
| DOI | https://doi.org/10.1108/17465729200400003 |
| Author | Claire Curran,Martin Knapp,Jennifer Beecham |
| Subject Matter | Health & social care |
journal of mental health promotion •volume 3•issue 1 •march 2004 © Pavilion Publishing (Brighton) Ltd
Mental health and employment: some
economic evidence
ABSTRACT
This paper brings together findings from current research into mental health and employment from an economic perspective. The economic
impact of reduced employment and productivity for people with mental health problems is described from both individual and societal
viewpoints. Interventions reported to have an impact on employment are considered, looking at both clinical interventions that have reported
employment outcomes and interventions that have as their primary target the improvement of employment outcomes. The paper also
describes the impact of common mental health problems on employment and productivity and reports the findings of some studies in this
area. However, the quantity and quality of economic information in this area are limited.
Claire Curran
Research officer
Martin Knapp
Professor of social policy
Jennifer Beecham
Senior research fellow
PSSRU, London School of Economics and
University of Kent at Canterbury
Review
Individuals with mental health problems are among the
most socially excluded in the UK today and it is likely
that reduced employment opportunities mediate the
process of becoming excluded. Employment rates for
people with mental health problems are low: for
example, fewer than 30% of people with depression
living in households are in full-time work, even though
90% of these people state a desire to work (Perkins &
Rinaldi, 2002).
This article examines some of the economic aspects
of this association between employment and mental
health problems in the broader context of social
exclusion. According to the UK government, social
exclusion ‘describes what can happen when people or
areas suffer from a combination of linked problems
such as unemployment, poor skills, low incomes, poor
housing high crime environments, bad health and
family breakdown’ (SEU, 2001).
Many connections have been suggested between
mental health problems and social exclusion, and
certainly there is evidence of causal links in both
directions (for a recent review see Fryers et al, 2003;
Melzer et al, 2003). That is, mental health problems
can be both a cause and a consequence of social
exclusion. Although employment is not a proxy
measure for social exclusion, it is a useful variable as it
has measurable outcomes and it mediates many other
aspects of social exclusion: for example, income,
poverty and social networks. Employment also
influences status and self-esteem and is a normalising
activity. This paper discusses interventions designed to
facilitate employment that have been assessed in terms
of their economic impact and considers the economic
consequences of mental health problems in terms of
decreased productivity.
Increasing attention is being focused on the
economic impacts of health problems. These impacts
include the direct cost of providing health care and
other public services, wider costs such as those
experienced by informal carers, and transfer payments
in the form of welfare and sickness benefits. There are
also substantial costs associated with employment
experiences for people with mental health problems
arising from lost productivity, unemployment, work
cutback and reduced income for informal carers. These
employment costs account for a far greater proportion
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