Media release: Long Covid could be costing NZ $2 billion a year in lost productivity: Experts urge preventive action

Long Covid could be costing the economy of Aotearoa New Zealand at least NZ$2 billion per year from reduced worker productivity, and that’s excluding health costs.

In the latest Briefing from the Public Health Communication Centre – Long Covid: High economic burden justifies further preventive efforts – researchers summarise local and international evidence about the impacts of Long Covid on productivity. 

University of Auckland health economist Professor Paula Lorgelly highlights estimates from a recently-published economic analysis in Australia that modelled the effects of Long Covid on productivity and GDP. “The research suggests that Long Covid is likely costing the Australian economy approximately AU$9.6 billion, equivalent to 0.5% of Australia’s GDP. And that’s a conservative estimate.”

Professor Lorgelly says it is likely that Long Covid is having a comparable economic impact in NZ where a 0.5% reduction in GDP translates to approximately NZ$2 billion per year. “While this is an estimate, it’s plausible that Long Covid significantly impacts productivity here. Further evidence of productivity harm comes from the Long COVID Registry Aotearoa which recently reported that individuals with Long Covid are working between seven and ten fewer hours a week than before the pandemic.”

Lead author Associate Professor Amanda Kvalsvig from the University of Otago says the NZ Government needs to respond with urgency to worldwide evidence of ongoing harms from Covid-19. “High year-round infection and reinfection rates mean that each week, another cohort of New Zealanders enters the Long Covid lottery.”

She says NZ needs to step up preventive action, including improving the air quality in schools and other workplaces to stop the virus from spreading so easily indoors. “Covid-19 vaccines are proven to reduce the risk of Long Covid and that knowledge should be reflected in NZ’s vaccine strategy. Eligibility for boosters should be expanded to younger age groups with a strong emphasis on occupations at increased risk such as teachers.”

Dr. Kvalsvig also emphasises the need for occupational and social support, including extended sick leave policies and comprehensive rehabilitation programs.

Professor Lorgelly says that while the Australian research has given us an indicator of the huge productivity loss NZ is facing, robust local studies are needed to quantify the true cost.

“Without accurate data, it will be difficult for policymakers to make informed decisions about how to efficiently and equitably protect New Zealanders from the health and economic harms of the ongoing Covid-19 pandemic.”