Canadian employers are shouldering more than $110 billion a year in costs related to employee mental health, driven by lost productivity, disability leave and workplace accommodations, according to a new report from the Canadian Standards Association.
It found those costs represent the largest share of an estimated $180 billion annual economic burden tied to mental-health challenges across the country, a figure that has more than tripled since 2011.
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Nearly one in three Canadians report their work is affected by mental-health challenges, said the report, noting while 86 per cent of employer spending on employee mental health is directed toward reactive measures, including disability claims, workplace accommodations and compliance-related costs, just 14 per cent is allocated to prevention and early intervention. Notably, presenteeism accounts for an estimated $12 billion in lost productivity annually.
The report pointed to a structural imbalance in how mental health is addressed across Canada, with spending concentrated on crisis response rather than prevention. It highlighted mental-health parity and a prevention-focused approach as key areas for reform, including expanding access to services such as counselling and psychotherapy and integrating earlier support across workplaces and communities.
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Without changes, the total economic cost of mental-health challenges in Canada is projected to reach $600 billion annually by 2050, approaching 20 per cent of the country’s gross domestic product and underscoring the growing financial pressure on employers and plan sponsors.