Stress impacts Denmark's labor supply and economy

A new analysis from the Economic Council (De Økonomiske Råd) reveals that severe stress has had massive consequences for the Danish labor market and economy. Calculations suggest that the labor supply would have been nearly 100,000 people larger over recent decades if severe stress reactions could have been avoided.

Work-related stress alone is estimated to have reduced the labor supply by between 16,000 and 39,000 full-time positions. Experts from the Danish Society of Engineers (IDA) note that while the report focuses on severe stress reactions, the actual economic cost is likely much higher when accounting for sick leave, general malaise, and decreased productivity.

Stakeholders are calling for a shift away from viewing stress solely as an individual issue of resilience. Instead, there is a push for better workplace prevention, including ensuring workloads match resources, increasing employee influence over tasks, and improving leadership training. Labor market parties have been called to participate in roundtable discussions to address the issue.