Poor workforce health is costing the UK economy an estimated £241 billion annually in lost productivity, with employees working while unwell accounting for a significant proportion of the impact, according to new research.
The Global Health and Productivity Index 2026, published by Vitality in partnership with RAND Europe, estimates that health-related productivity losses are equivalent to around 8% of UK GDP.
The research identifies presenteeism – employees continuing to work despite physical or mental health problems that affect their performance – as a major contributor, suggesting that traditional absence statistics may significantly underestimate the impact of poor workplace health.
Workers with high mental health wellbeing risks were estimated to lose an additional 30.3 productive days annually, while 66% of UK employees reported moderate-to-serious psychological distress.
The findings are particularly relevant in the video games industry, where supporting younger employees, maintaining wellbeing and retaining skilled talent are important workforce considerations.
More than eight in ten Gen Z employees aged 18 to 24 reported moderate or serious psychological distress. Workers aged 18 to 34 were also more than four times as likely to experience serious psychological distress as those aged 55 and over.
Despite these challenges, the research found that only one in three UK employers offers counselling or mental health support.
Management capability also emerged as a significant factor. Employees who felt their manager supported their health experienced nine fewer lost productive days annually than those who did not.
The report recommends greater investment in management training, improved access to workplace health programmes and stronger board-level accountability for employee wellbeing.
Christian van Stolk, Deputy Chief Executive at RAND Europe, said employers’ focus on absence risked overlooking the wider challenge of presenteeism, where productivity is affected even when employees remain at work.
The findings reinforce the importance of looking beyond sickness absence when assessing workforce wellbeing, with supportive line management, early intervention and accessible mental health resources potentially playing an important role in improving employee experience and productivity.
The research involved 9,206 workers across five countries, including 2,009 in the UK.
You can learn more about Mental Health & Wellbeing in the Workplace here on Empower Up.
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