The COVID-19 Pandemic Cost Employers $213 Billion, with 6.6 Billion Lost Hours of Productivity, According to IBI Analysis – Yahoo Finance

Educational Services, Health Care, and Social Assistance Took Biggest Economic Hit

OAKLAND, Calif., Jan. 17, 2023 /PRNewswire/ — The COVID-19 pandemic has had a significant effect on employee productivity and economic cost. The Integrated Benefits Institute (IBI), a nonprofit research and educational organization focused on workforce health and productivity, analyzed data from the US Current Population Survey (CPS) to estimate the number of lost hours attributed to the pandemic, and the cost associated with the loss of work hours.

IBI’s analysis estimates that the cost associated with the loss of work hours is $213.1 billion ($167.4 billion in the first year and $45.7 billion in the second year). The number of lost hours attributed to the pandemic was 6.6 billion hours (5.2 billion in the first year and 1.4 billion in the second year).

Some occupations and industries were particularly hard hit. The top 5 industries that faced the greatest economic losses were: educational services, health care, and social assistance ($30.8 billion), public administration ($27.1 billion), construction ($23.9 billion), waste management services ($22.4 billion), and manufacturing ($21.5 billion).

The first year of the pandemic brought an average increase in lost hours of 39%; however, those who worked as administrative support (46%) or craft workers/artisans (51%) had higher-than-average lost hours. In the second year, occupations collectively recovered an average of 11%. Administrative support (15%) and craft workers (35%) continued to experience higher than average lost hours in the second year.

Many lower-wage employees could not avoid face-to-face encounters and were hard hit with lost hours. These employees were disproportionately women, people of color, without a high school diploma, and workers over 65.

How can employers recover from the past two years?

As employers and employees adapt to the changing dynamics of work, and to better understand how to mitigate further losses, IBI sought input from more than 1,800 employers. Employers emphasized a number of key points:

Communication is a key element. Leadership must think differently about how they show up, communicate, and interact with employees.  Honesty and transparency are the most important part of promoting trust. Communicate broadly and often through multiple channels.

Trust, safety, and inclusion have heightened importance. Employees’ sense of security can be strengthened by comprehensive programs that include financial education and wellbeing and leave of absence benefit offerings to meet employee needs.

Employee wellbeing and productivity may need stabilization. Benefits and HR professionals can provide a reliable and sustainable business case for investments in workforce health and productivity. Employers have long considered the health of the workforce primarily from the perspective of managing health costs. By treating the health and wellbeing of the workforce as a strategic asset in a company’s value-added process, employers can create a high-performance workforce.

The basics, such as preventative screening and well visits, are still valuable. To avoid expensive events, engage employees before their conditions deteriorate. There are now options such as home screenings and on-site services available to offer employees. Develop communication plans to raise employees’ awareness of the benefits of regular preventive checks and highlight options and costs available.

For more information the report and infographic are available upon request, please contact Jennifer Santisi at jsantisi@ibiweb.org.

About Integrated Benefits Institute

The Integrated Benefit Institute’s independent research, industry-leading tools and data resources help companies link health-related programs to the outcomes that maximize the contributions of people to productivity and business performance. Founded in 1995, IBI is a national nonprofit research organization and business association serving 1,200 employer and supplier members and their 22 million employees. For additional information, please visit www.ibiweb.org and follow us on Twitter and LinkedIn.

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SOURCE Integrated Benefits Institute

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