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Toxic work conditions cost global economy 1.37% of GDP — ILO

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Poorly designed and managed work is costing lives and billions in lost productivity, with more than 840,000 people dying each year from health conditions linked to workplace stress, according to a new global report by the International Labour Organization.

The report, The psychosocial working environment: Global developments and pathways for action, found that psychosocial risks — such as long working hours, job insecurity, and workplace harassment — are now a major driver of illness and death worldwide.

These risks are primarily linked to cardiovascular diseases and mental disorders, including suicide, and result in nearly 45 million disability-adjusted life years (DALYs) lost annually.

Economically, the toll is steep: losses tied to these risks are estimated at 1.37 percent of global GDP each year, reflecting reduced productivity and the cost of poor health.

“Psychosocial risks are becoming one of the most significant challenges for occupational safety and health in the modern world of work,” said Manal Azzi, Team Lead on OSH Policy and Systems at the ILO.

“Improving the psychosocial working environment is essential not only for protecting workers’ mental and physical health, but also for strengthening productivity, organizational performance and sustainable economic development,” he added.

The ILO defines the psychosocial working environment as how jobs are designed, organized, and managed, including workload, autonomy, job security, and workplace culture.

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The report identifies three key layers shaping worker well-being:

  • The job itself — including demands, skills match, and task design
  • Work organization — such as workload, pace, and supervision
  • Workplace systems — including policies, contracts, and management practices

When poorly handled, these factors can combine to create harmful conditions, leading to stress, burnout, and long-term health problems.

The findings are based on global data covering five major risk factors: job strain, effort–reward imbalance, job insecurity, long working hours, and workplace bullying and harassment. These were matched with health data from the World Health Organization and the Global Burden of Disease study to estimate their impact.

The report also warns that rapid changes in the world of work — driven by digitalization, artificial intelligence, and remote work — could worsen these risks if left unmanaged.

At the same time, these shifts offer opportunities to redesign work in healthier and more flexible ways, provided governments and employers act proactively.

The ILO emphasized that integrating psychosocial risk management into occupational safety and health systems, and strengthening dialogue between governments, employers, and workers, will be key to reversing the trend.

By addressing these risks at their root, the report concludes, countries and companies can protect workers while strengthening productivity and long-term economic resilience.

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