Sleep deprivation is not just a health concern, it could be a major economic burden as well. Chronic sleep deficiency leads to an estimated loss of $411 billion each year in the United States, according to author and professor at the University of California, Berkeley, Matthew Walker.
The losses are due to reduced workplace productivity and cognitive impairment similar to being drunk. They also strain healthcare and public safety systems because of chronic illnesses and accidents involving driving while being sleep-deprived, the UC Berkeley professor, popularly known as Matt Walker, highlighted in a podcast on Oct. 20.
Walker, professor of Neuroscience and Psychology at UC Berkeley, emphasised the economic costs of sleep deficiency. “Sleep is not a luxury; it is a biological necessity and an economic engine. Chronic sleep deficiency drains the U.S. economy by an estimated $411 billion per year—roughly 2.3% of GDP. That's lost innovation, accuracy, and attention,” he wrote in a post on X, sharing his podcast.
Sleep is not a luxury; it is a biological necessity and an economic engine 💰. Chronic sleep deficiency drains the U.S. economy by an estimated $411 billion per year—roughly 2.3% of GDP. That's lost innovation, accuracy, and attention. #Sleeponomics #Productivity…
October 20, 2025AdvertisementAuthor of the popular book Why We Sleep, Walker said the issue extends beyond the US. “This is not a uniquely American problem. Sleep loss costs Japan $138B, Germany $60B and the UK $50B each year.”
This is not a uniquely American problem 🌍. Sleep loss costs Japan $138B (2.9% of GDP), Germany $60B (1.6%), and the UK $50B (1.9%) each year. A global public-health failure with economic consequences.#GlobalHealth #Economicshttps://t.co/14ZSGah3N9
October 20, 2025AdvertisementFurther illustrating the impact on productivity, Walker explained that employees who sleep less than six hours a night lose “the equivalent of six full workdays” annually compared to those getting seven or more hours. “Sleep is the foundation of workplace performance,” Walker added.
The workday starts the night before 💼. Employees sleeping <6 hours a night lose the equivalent of six full workdays in annual productivity compared with those sleeping ≥7 hours. Sleep is the foundation of workplace performance. #WorkplaceWellness #Performance…
October 21, 2025 The sleep analysis expert also drew attention to the cognitive effects of sleep loss, saying that being awake for 17 to 19 hours impairs the brain to a level comparable with “a blood alcohol level of 0.05%,” while 24 hours without sleep can reduce performance to “roughly 0.10%,” similar to being “legally drunk in many regions.”
Sleep loss intoxicates the brain ⚠️. After 17–19 hours awake, cognitive performance equals that of someone with a blood alcohol level of 0.05%. At 24 hours, it's roughly 0.10%—legally drunk in many regions.#CognitiveFunction #DrowsyDrivinghttps://t.co/14ZSGah3N9
October 21, 2025AdvertisementEarlier Studies Highlighting Economic Cost of Sleep Deprivation
In 2016, a study by RAND Europe, a non-profit organisation, also highlighted a similar impact of sleep deprivation on the US economy. That report, too, said insufficient sleep among the American workforce costs the economy up to $411 billion annually, or 2.28% of the country's GDP, the figure that Matt Walker cited in his recent podcast.
The study noted that poor sleep habits negatively affect work performance. Researchers found individuals sleeping less than six hours a night face a 13% higher risk of mortality compared with those getting seven to nine hours of rest.
The report also offered recommendations to improve sleep outcomes for individuals, employers and public authorities. The report advised individuals to maintain regular wake-up times, limit screen use before bed and stay active during the day. It urged employers to promote sleep health, provide nap-friendly workspaces and reduce after-hours device use. Public authorities were asked to support sleep guidance and introduce later school start times, as per the report.
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