7-February -2025-Special-Article

ECONOMIC SURVEY 2025: WORKPLACE CULTURE, MENTAL HEALTH, AND ECONOMIC PRODUCTIVITY

The Economic Survey 2025 underscores the significant influence of workplace culture, working hours, and lifestyle choices on mental health and worker productivity. It highlights the need for better working conditions and healthier lifestyles to enhance employee well-being, ultimately contributing to economic growth.

Key Factors Affecting Mental Health

Workplace Culture

• A positive work environment enhances mental health and productivity.
• Employees with good relationships with managers and colleagues report 33% higher mental well-being scores.
• A sense of purpose at work contributes to greater job satisfaction and lower stress levels.

Workload Management

• Excessive workloads lead to stress and anxiety.
• Employees with balanced workloads report 27% higher mental well-being compared to overburdened workers.
• Long working hours (55-60 per week) significantly increase mental fatigue and burnout.

Impact of Remote Work

• Remote work provides flexibility but can negatively affect mental well-being.
• Fully remote employees report 17% lower mental well-being than those working in-office or hybrid models.
• Social interactions in workplaces play a vital role in maintaining emotional well-being.

Lifestyle Choices and Mental Well-being

• Diet: Avoiding ultra-processed foods is linked to better mental health.
• Physical Activity: Lack of exercise increases stress and lowers productivity.
• Social Media Usage: Excessive usage correlates with anxiety and depression.
• Family Relationships: Strong family ties improve emotional stability and resilience.

Increase in Self-Employment: Trends and Implications

Rise in Self-Employment

• Self-employment has increased from 52.2% in 2017-18 to 58.4% in 2023-24.

Sectoral Shifts

• Agriculture remains the largest employer, rising from 44.1% to 46.1%.
• Salaried employment declined from 22.8% (2017-18) to 21.7% (2023-24).
• Casual employment dropped from 24.9% to 19.8%, indicating a shift towards structured self-employment.

Unemployment Reduction

• The unemployment rate (15+ years) declined from 6% (2017-18) to 3.2% (2023-24).
• EPFO enrollments doubled, from 61 lakh (2018-19) to 1.31 crore (2023-24), with youth (<29 years) accounting for 61% of new payroll additions.

Impact of Poor Mental Health on the Economy

Lost Productivity

• Depression and anxiety reduce work efficiency and increase absenteeism.
• As per WHO, mental health disorders result in 12 billion lost workdays annually, costing nearly USD 1 trillion.
• In India, poor mental health costs approximately ₹7,000 per affected worker per day.

Absenteeism and High Turnover

• Poor mental health leads to more sick leaves, early job exits, and high employee turnover.
• Economic Survey 2025 states that individuals with poor mental health lose 15 workdays per month, while healthier individuals lose only 2-3 days.

Increased Healthcare Expenditure

• Frequent hospital visits and long-term mental health treatments increase public healthcare costs.
• This diverts resources from other crucial sectors like education and infrastructure.

Decline in Innovation and Entrepreneurship

• Poor mental health hampers creativity, risk-taking, and decision-making.
• High-performance industries suffer from burnout, slowing technological and business advancements.

Mental Health Quotient (MHQ)

• MHQ is a standardized measure that evaluates mental well-being and cognitive function.
• It is assessed through a questionnaire focusing on emotional resilience, cognitive ability, and social well-being.
• Scores range from -100 to +200, with higher scores indicating better mental health.

Recommendations by Economic Survey 2025

Workplace Reforms

• Improve workplace culture by fostering healthy work relationships and a sense of purpose.
• Implement work-hour regulations to prevent burnout and enhance productivity.

Flexible Work Models

• Promote hybrid work policies to balance flexibility and social interaction.
• Mitigate isolation issues faced by fully remote workers.

Health and Lifestyle Interventions

• Employers should encourage healthy diets, physical activity, and digital detox programs.
• Initiate wellness programs to enhance employee health and productivity.

Awareness and Mental Health Support

• Implement nationwide mental health awareness campaigns.
• Establish counseling services and employee assistance programs at workplaces.

Policy and Legislative Measures

• Strengthen labor laws to include mental health policies in occupational health regulations.
• Ensure businesses adopt mental health-friendly workplace practices.

Conclusion

The Economic Survey 2025 emphasizes that mental health is a critical factor in workforce productivity and economic growth. Addressing workplace stress, implementing supportive policies, and promoting a holistic approach to well-being will help India build a healthier and more resilient workforce, strengthening its position as a global economic leader.

Mains Question:

2025. Examine the impact of workplace culture, working hours, and lifestyle choices on mental health and productivity, as highlighted in the Economic Survey 2025. Suggest policy measures to improve workforce well-being. (250 WORDS)