Canada's Poor Health Costs Economy Over $100 Billion Annually

A new report from Deloitte Canada has shed light on the staggering economic cost of poor health in Canada. The study found that health-related barriers to workforce participation drained more than $100 billion in economic output from the Canadian economy in 2025.

The analysis introduces a Health Productivity Gap (HPG) framework, which quantifies the combined economic cost of illness, mental health challenges, and unpaid caregiving responsibilities. Deloitte's HPG framework breaks down the economic loss into two distinct problems: prevention gap and participation gap.

According to the report, $55.1 billion in lost economic value was linked to morbidity - time away from work due to illness. An additional $48.5 billion in lost labour income was tied to unpaid caregiving responsibilities, a burden that falls disproportionately on women and those in middle age.