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The economic cost of inadequate sleep
Open accessAbstract
Study Objectives: To estimate the economic cost (financial and nonfinancial) of inadequate sleep in Australia for the 2016-2017 financial year and relate this to likely costs in similar economies. Methods: Analysis was undertaken using prevalence, financial, and nonfinancial cost data derived from national surveys and databases. Costs considered included the following: (1) financial costs associated with health care, informal care provided outside healthcare sector, productivity losses, nonmedical work and vehicle accident costs, deadweight loss through inefficiencies relating to lost taxation revenue and welfare payments; and (2) nonfinancial costs of loss of well-being. They were expressed in US dollars ($). Results: The estimated overall cost of inadequate sleep in Australia in 2016-2017 (population: 24.8 million) was $45.21 billion. The financial cost component was $17.88 billion, comprised of as follows: direct health costs of $160 million for sleep disorders and $1.08 billion for associated conditions; productivity losses of $12.19 billion ($5.22 billion reduced employment, $0.61 billion premature death, $1.73 billion absenteeism, and $4.63 billion presenteeism); nonmedical accident costs of $2.48 billion; informal care costs of $0.41 billion; and deadweight loss of $1.56 billion. The nonfinancial cost of reduced well-being was $27.33 billion. Conclusions: The financial and nonfinancial costs associated with inadequate sleep are substantial. The estimated total financial cost of $17.88 billion represents 1.55 per cent of Australian gross domestic product. The estimated nonfinancial cost of $27.33 billion represents 4.6 per cent of the total Australian burden of disease for the year. These costs warrant substantial investment in preventive health measures to address the issue through education and regulation.
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McAlpine, T., Mullan, B. A., & Clarke, P. (2023) · Journal of Behavioral Medicine · doi:10.1007/s10865-023-00448-0 · Cited by 17
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“Insufficient sleep is linked to notably reduced work performance, impaired daytime functioning, and higher health care costs (2, 3).”
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“Furthermore, sleep loss and sleep disorders have a major impact on health costs which was estimated to be as high as 2% – 6% of the gross domestic product in Australia and other developed countries (Hillman et al., 2018; Hafner et al., 2017; Golombek et al., 2024).”
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“Its high prevalence generates considerable costs for health systems(4).”
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“EDS is associated with an increased risk of motor vehicle accidents (2, 3), decreased quality of life (4, 5), reduced work productivity (4, 6), and significant economic burden (7, 8).”
BackgroundSleep quality among patients with chronic illness in Ethiopia: systematic review and meta-analysis
Edmealem, A., Tegegne, B., Alem, G., Zeleke, H., Ayenew, T., Birhanie, S. A., Gebeyew, A. S., Tomiso, B., Getahun, A., Wondie, T., et al. (2024) · Frontiers in Psychiatry · doi:10.3389/fpsyt.2024.1365463 · Cited by 6
“The importance of maintaining adequate sleep quality and quantity has relevance beyond reducing healthcare spending, improving morale, and improving productivity (4).”
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“55% of Australian gross domestic product (Hillman et al., 2018).”
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“These mechanistic and clinical concepts pave the way for targeted therapy or “precision sleep medicine” to reduce the adverse health, safety, and social impact of untreated sleep disordered breathing (10).”
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“The cost of poor sleep has been estimated to range between $322 and $1967 per employee (Glick et al. 2023) with Hillman et al. (2018) suggesting an overall cost in Australia of $45.21 billion (2016–2017), made up of financial costs (e.g., healthcare, productivity, reduced employment, premature…”
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Michael, C., Taxali, A., Angstadt, M., McCurry, K. L., Weigard, A. S., Kardan, O., Molloy, M. F., Toda-Thorne, K., Burchell, L., Dziubinski, M., et al. (2025) · Biological Psychiatry Global Open Science · doi:10.1016/j.bpsgos.2025.100522 · Cited by 5
“Shorter sleep increases risk for impaired regulation over behavior, cognition, and emotion (1,3,5); is especially common in adolescence (6); disrupts brain development (12); and incurs substantial societal costs (67).”
Kaambwa, B., Woods, T.-J., Natsky, A. N., Bulamu, N. B., Mpundu‐Kaambwa, C., Loffler, K. A., Sweetman, A., CATCHESIDE, P. G., Reynolds, A. C., Adams, R., et al. (2024) · PharmacoEconomics · doi:10.1007/s40273-023-01349-5 · Cited by 4
“The annual social and economic cost of sleep disorders in Australia was estimated at $35.4 billion in 2021 [27], albeit down from $45.21 billion in 2017 [28].”
BackgroundInfluentialDoes Willingness to Pay Differ for Mental and Physical Health?
Eaton, E., & Hunt, A. S. P. (2024) · Value in Health · doi:10.1016/j.jval.2024.06.009 · Cited by 5
Lattanzi, S., Brigo, F., & Silvestrini, M. (2018) · Journal of Clinical Hypertension · doi:10.1111/jch.13423 · Cited by 6
Ekwaru, J. P., Öhinmaa, A., & Veugelers, P. J. (2020) · Nutrients · doi:10.3390/nu12041101 · Cited by 4
“In addition to lack of physical activity, sedentary activity and inadequate sleep have also been shown to contribute to health care costs [56,57].”
BackgroundLomas, K. J., Morgan, K., Haines, V., Hartescu, I., Beizaee, A., Barnes, J., Zambelli, Z., Ravikumar, M., & Rossi, V. (2024) · BMJ Open · doi:10.1136/bmjopen-2024-086797 · Cited by 4
Li, H., & Guan, Y. (2019) · bioRxiv (Cold Spring Harbor Laboratory) · doi:10.1101/859256 · Cited by 4
Weihs, A., Frenzel, S., Bi, H., Schiel, J. E., Afshani, M., Bülow, R., Ewert, R., Fietze, I., Hoffstaedter, F., Jahanshad, N., et al. (2022) · Research Square · doi:10.21203/rs.3.rs-2203610/v1 · Cited by 4
Focus on Multidisciplinary Aspects of Sleep Medicine
Cicolin, A., & Ferini‐Strambi, L. (2023) · Brain Sciences · doi:10.3390/brainsci13091327 · Cited by 4
Li, R., He, Y., Bie, Y., Guo, J., Wang, L., Zhao, Y., Zhong, J., & Zhu, W. (2026) · Diagnostics · doi:10.3390/diagnostics16050802 · Cited by 3
“Sleep disorders, including insomnia and obstructive sleep apnea, represent a major global health challenge, significantly increasing healthcare costs and morbidity related to cardiovascular and metabolic diseases [1–3].”
Memari, A., Shahrbabaki, P. M., Zakeri, M. A., & Ahmadinejad, M. (2023) · Frontiers in Psychiatry · doi:10.3389/fpsyt.2023.1269402 · Cited by 4
“Healthcare systems worldwide spend substantial amounts of money on compensating for damages related to sleep problems (31).”
BackgroundSzeto, K., Maher, C. A., Curtis, R., Singh, B., Cain, T., Beckett, D., & Ferguson, T. (2025) · Healthcare · doi:10.3390/healthcare13111215 · Cited by 6
“…is substantial, with physical inactivity costing international healthcare systems INT 53.8 billion in 2013 [8], poor diet costing the United States approximately USD 50 billion per year [9], and the estimated overall cost of inadequate sleep costing Australia AUD 45.21 billion in 2016–2017 [10].”
InfluentialTo advance sleep science, let’s study change
Simon, K. C. N. S., & Duggan, K. A. (2025) · SLEEP · doi:10.1093/sleep/zsaf155 · Cited by 2
“Finally,inadequate sleep is costly; insufficient sleep costs the United States over 1 million working days annually [20], and total financial costs are more than 1.5 per cent of the Australian gross domestic product [21].”
InfluentialLöfvander, M. B., Beckman, L. J., & von Kobyletzki, L. (2020) · International Journal of Environmental Research and Public Health · doi:10.3390/ijerph17217886 · Cited by 3
“Longstanding sleep problems increase the risk of mental and physical illness, but have daytime consequences as well, such as slower responses to challenging tasks, all leading to raised costs for health care and accidents [4–8].”
BackgroundFeng, Y., Wu, J., Yuan, M., Xu, T., Li, J., & Hou, D. (2024) · Sleep Medicine · doi:10.1016/j.sleep.2024.07.032 · Cited by 3
Bègue, L., Raoul, G., Barry, F., & Nicot, R. (2024) · Journal of Stomatology Oral and Maxillofacial Surgery · doi:10.1016/j.jormas.2024.102075 · Cited by 3
Hietakoste, S., Karhu, T., Lombardi, C., Julián, P. A., Bailón, R., Duce, B., Sillanmäki, S., Töyräs, J., Leppänen, T., Myllymaa, S., et al. (2024) · SLEEP · doi:10.1093/sleep/zsae282 · Cited by 3
Daytime Sleepiness Level Prediction Using Respiratory Information
Shinoda, K., Yoshii, M., Yamaguchi, H., & Kaji, H. (2019) · International Joint Conference on Artificial Intelligence · doi:10.24963/ijcai.2019/827 · Cited by 3
Hingley, L., Jeiranikhameneh, A., Beirne, S., Peoples, G. E., Jones, A., Sayyar, S., Eastwood, P. R., Lewis, R., Wallace, G. G., & MacKay, S. G. (2020) · Journal of Biomedical Materials Research Part A · doi:10.1002/jbm.a.36913 · Cited by 3
Cho, J. H. (2023) · Journal of rhinology · doi:10.18787/jr.2022.00416 · Cited by 3
“…[21], and the population-attributable fractions of OSA for complications are very small showing a value of 4.8% for coronary heart disease, 1.5% for heart failure, 4.8% for stroke, 3.6% for depression, 1.7% for diabetes, 3.8% for vehicle accidents, and 1.3% for work-related accidents [7,22].”
InfluentialCardiopulmonary coupling analysis using smart wearables and mobile computing
Schüler, W., Spicher, N., & Deserno, T. M. (2021) · Current Directions in Biomedical Engineering · doi:10.1515/cdbme-2021-2074 · Cited by 3
“Sleep-related disorders, such as obstructive sleep apnea, are widely spread and lead to negative short- and long-term consequences [1].”
BackgroundHealth Economics of Sleep Disorders
Mohit, B., Chang, R., & Wickwire, E. M. (2022) · Springer eBooks · doi:10.1007/978-981-16-0123-1_7 · Cited by 3
Spanish Adaptation of the Groningen Sleep Quality Scale (GSQS-8)
Serrano-Fernández, M.-J., Boada‐Grau, J., Robert-Sentís, L., Boada-Cuerva, M., Vigil‐Colet, A., & Assens-Serra, J. (2021) · Universitas Psychologica · doi:10.11144/javeriana.upsy19.sags · Cited by 3
STAR sleep recording export software for automatic export and anonymization of sleep studies
Nikkonen, S., Korkalainen, H., Töyräs, J., & Leppänen, T. (2022) · Scientific Reports · doi:10.1038/s41598-022-19892-0 · Cited by 3
Sleep restriction increases reward sensitivity during sequential updating
Lim, J. Y. L., Bennett, D., & Drummond, S. P. A. (2025) · SLEEP · doi:10.1093/sleep/zsaf354 · Cited by 2
“Insufficient sleep in the workforce imposes a substantial economic impact through reducing productivity and increasing errors in decision making [4, 5].”
Light Pollution: Economic Valuation Methods and a Market Solution
Su, J. (2022) · Advances in economics, business and management research/Advances in Economics, Business and Management Research · doi:10.2991/978-94-6463-052-7_147 · Cited by 2
Casaclang, R. I. M., Manahan, J. A. P. L., Pineda, D. C. A., Villaflor, N. M. N., & Damirson, A. C. (2023) · International Conference on Industrial Engineering and Operations Management (IEOM) · doi:10.46254/an13.20230591 · Cited by 2
Let me sleep on it: sleep and investor reactions to earnings surprises
Gonzalez, A., & Li, X. (2024) · European Journal of Finance · doi:10.1080/1351847x.2023.2287065 · Cited by 2
The interdisciplinary field of Sleep Medicine—time for dentists to sink their teeth into it!
Cistulli, P. A., & Balasubramaniam, R. (2024) · Australian Dental Journal · doi:10.1111/adj.13044 · Cited by 2
Seeking professional help for sleep-related complaints
Rauch, L., Schneider, T., & Wendt, C. (2024) · Frontiers in Public Health · doi:10.3389/fpubh.2024.1430574 · Cited by 5
Thorne, H. B., Sophocleous, R. M., Sprajcer, M. A., Shriane, A. E., Duncan, M. J., Ferguson, S. A., Vandelanotte, C., Kolbe-Alexander, T. L., Gupta, C. C., Rigney, G., et al. (2025) · Behavioral Sleep Medicine · doi:10.1080/15402002.2025.2476687 · Cited by 2
“2 and USD400 billion annually, respectively (Hafner et al., 2017; Hillman et al., 2018).”
Hypersomnolence in focus: a white paper of the 6th Think Tank World Sleep Forum
Silvani, A., Bassetti, C., Bradicich, M., Dodel, R., Strambi, L. F., Hajak, G., Hedner, J., Heinzer, R., Javaheri, S., Jennum, P., et al. (2025) · Sleep Medicine · doi:10.1016/j.sleep.2025.106607 · Cited by 2
“Studies in Australia estimated that these costs contribute approximately 1 % of the total costs for inadequate sleep, mostly with EDS [137], and of moderate to severe OSA with EDS [138].”
The asymmetric relationship between smoking and sleep: Longitudinal findings from Dutch panel data
Doornenbal, B. M., & Spisak, B. R. (2021) · Population Medicine · doi:10.18332/popmed/142891 · Cited by 2
Bao, J., Han, J., Kato, A., & Kunze, K. (2020) · ACM International Joint Conference on Pervasive and Ubiquitous Computing (UbiComp) · doi:10.1145/3410530.3414415 · Cited by 2
“Besides vehicle accidents, the economic loss caused by sleepiness was reported in recent studies [9, 10].”
BackgroundZirkadiane Uhren und Schlaf – nachgeschaltete Funktion oder Crosstalk?
Begemann, K., & Oster, H. (2020) · Somnologie - Schlafforschung und Schlafmedizin · doi:10.1007/s11818-020-00275-4 · Cited by 2
Metadata
- Authors
- Hillman, D., Mitchell, S., Streatfeild, J., Burns, C., Bruck, D., & Pezzullo, L.
- Affiliations
- The University of Western Australia (AU)
- Health Economics and Social Policy Team, Deloitte Access Economics, Canberra, Australia
- Victoria University (AU)
- Corresponding author
- Hillman, David
- Venue
- Sleep
- Publisher
- Oxford University Press (OUP)
- Published
- 2018-06-04
- Volume
- 41
- Issue
- 8
- ISSN
- 0161-8105 (ISSN-L)
- 1550-9109
- OpenAlex
- W2806077392
- Cited by
- 278
- References
- 70
- Citations by year
- 2026: 17 · 2025: 34 · 2024: 38 · 2023: 46 · 2022: 37 · 2021: 36 · 2020: 35 · 2019: 24 · 2018: 11
- FWCI
- 34.69
- Type
- journal article
- Language
- en
- Open access
- green
- vuir.vu.edu.au
- Licence
- academic.oup.com/journals/pages/open_access/funder_policies/chorus/standard_publication_model (vor)
- Locations
- SLEEP (publishedVersion)
- PubMed (publishedVersion)
- Victoria University Research Repository (Victoria University) (submittedVersion)
- UWA Profiles and Research Repository (UWA) (submittedVersion)
- Funders
- Sleep Health Foundation
- Topics
- Social Sciences › Psychology › Experimental and Cognitive Psychology › Sleep and related disorders
- Social Sciences › Psychology › Experimental and Cognitive Psychology › Sleep and Work-Related Fatigue
- Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Health Systems, Economic Evaluations, Quality of Life
- Keywords
- insufficient sleep, sleep disorders, productivity loss, presenteeism, absenteeism, informal care, premature mortality, deadweight loss, disease burden, Australia
- MeSH terms
- Absenteeism, Accidents, Australia, Efficiency, Health Expenditures, Humans, Sleep Initiation and Maintenance Disorders, Male, Public Health, Sleep, Prevalence, Health Care Costs, Cost of Illness
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