Economy

Hangovers are a significant cause of absence, which can be financially damaging to businesses. Annually, alcohol related absenteeism costs the UK economy an estimated £1.5bn according to the Institute of Alcohol Studies (IAS).

The IAS estimates that up to 17m days a year are lost due to alcohol related absence.

Absenteeism from work through alcohol misuse costs the economy about £1.5bn

• It is generally acknowledged that people with alcohol-related problems have increased rates of sickness absence from work.

• The value of lost output during sickness has long been regarded as one of the main costs to the economy of alcohol misuse.

• In 2001, across the whole UK workforce, over 176m working days were lost as a result of absenteeism. Between 6 per cent and 15 per cent of this aggregate figure can be attributed to alcohol-related sickness.

• In total, alcohol-related sickness absence is estimated to cost between £1.2bn and £1.8bn, with a middle estimate of approximately £1.5bn.

But alcohol misuse can also reduce employment, which accounts for a further £1.9bn cost

• The relationship between drinking and unemployment is not straightforward. However, there is evidence suggesting that excess drinking is negatively associated with employment.

• In total, the reduction in employment activity associated with drinking is estimated to cost between £1.7bn and £2.1bn, with a middle estimate of approximately £1.9bn.

Premature death from alcohol misuse loses the economy around £2.4bn in potential output

• Premature death from alcohol-related causes accounts for at least 58,000 potential years of life lost under the age of 65.

• This removes employees from the workforce and implies loss of output in the economy.

• The economic cost of alcohol-related premature death is the value foregone of their potential output in current and future years up to retirement.

• The total economic cost is estimated to lie between £2.3bn and £2.5bn.

Figures taken from the IAS factsheet on alcohol and the workplace.