Finland Part 2 Page 5 - Mental Health in the workplace

The high incidence of mental health disorders is a heavy economic burden for society. In 1994, the total costs of mental health disorders in Finland were calculated at 2% of GNP.¹ Depression accounted for 50% of that figure and schizophrenia for 30%. The direct costs of schizophrenia are higher than the health costs of smoking. ²

The burden of these costs does not fall equally on society, employers, employees, and insurance companies, but they all bear their share. Figures on the direct costs of benefits paid through the social security system are easier to obtain than figures on costs related to the work environment, such as reduced productivity and loss of potential output through reduction of the available labour force. The medical costs of mental health problems are considerable but difficult to define, since mental health problems contribute to so many other illnesses, such as cardiovascular disease and blood pressure and back problems. The scope of these problems for the individual cannot be measured in financial terms alone, but must include the toll of human suffering: social problems and isolation are not quantifiable.

Social security

Social security expenditures include expenses for pensions, municipal social services, health care, unemployment insurance, and health insurance. Social expenditures accounted for 37 % of GDP in 1992 and were estimated at 33.2% in 1996.³ The high figure at the beginning of the 1990s can be attributed to the rapid increase in unemployment. At the same time, the pressure to reduce social protection costs increased, and a number of savings and re-funding arrangements were introduced during between 1992 and 1995 to permanently reduce the cost of benefits and services. Relatively speaking, the biggest cuts were made in health care.⁴During the same period, costs related to disability and old age increased significantly.

Mental Health in the Workplace