## Investing in Prevention: mitigating the Economic Impact of Type 2 Diabetes on the Workforce
Type 2 diabetes considerably impacts labor market participation and earnings, costing the Dutch economy at least €1.1 billion annually in lost productivity, according to research from SEO Economic Research.Though, proactive prevention strategies offer a substantial return on investment, perhaps yielding over €2,000 per year in labor market benefits for each case of medication-requiring type 2 diabetes avoided.
Currently, approximately 500,000 individuals aged 18-67 in the Netherlands utilize medication to manage high blood sugar levels associated with type 2 diabetes.this chronic condition, characterized by the body’s reduced response to insulin, can lead to debilitating symptoms like fatigue and concentration difficulties, as well as serious long-term complications affecting the heart, kidneys, and eyes – all of which negatively impact work performance.
SEO’s research demonstrates a clear link between diabetes and employment. Individuals with type 2 diabetes requiring medication experience a 2.4 percentage point decrease in their chances of securing paid employment, resulting in roughly 12,000 more people relying on disability or sickness benefits. Furthermore, those with the condition see an average reduction of €134 in their gross monthly wages, largely attributable to reduced working hours.
the economic burden extends beyond these direct figures. The €1.1 billion loss in productivity represents a conservative estimate, as it only accounts for declines reflected in gross wages and doesn’t fully capture the broader economic consequences.Fortunately,preventative measures offer a compelling economic solution. SEO’s analysis reveals that an investment of €2,400 annually in preventative programs that successfully prevent one individual from developing medication-requiring type 2 diabetes generates more in labor market benefits than the initial cost.
Effective prevention policies, successfully implemented in other countries, include: a tiered tax on sugary drinks based on sugar content; early detection programs to identify individuals at risk; and the utilization of weight loss medication for individuals with prediabetes who are also overweight or obese.
SEO’s research methodology ensures reliable results by comparing individuals using diabetes medication with their siblings of similar age, gender, and education. To account for pre-existing health differences between these groups, the researchers focused on deviations from established trends in labor market outcomes, providing a robust assessment of the condition’s impact.
Further details on this research are available in the report: Diabetes and work – Effects of type 2 diabetes on work performance.
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