What are the economic consequences of drug abuse?

Table of Contents Show

Economic Costs
Labor Force
Turnover and Absenteeism
School Performance
Resources Available for Employers to Create a Drug‐Free Workplace

This study examined the global economic and social consequences of illicit drug abuse and trafficking from the extent of the illicit drug problem to a cost-benefit analysis and the need to maintain social peace.

The illicit drug abuse and trafficking problem has been clear in its relevance to the international community. The continued interest in the economic and social consequences of the illicit drug problem was the underlying premise behind this report published under the United Nations International Drug Control Program (UNDCP). Based on a previous study in 1995 that focused on dealing with illicit markets and the production, distribution, and consumption of illicit drugs, this report expands the information base in measuring the economic and social consequences of drug abuse. The report is divided into three primary sections. The first section offers a look at the extent of the illicit drug problem through its production, distribution, and consumption. In the second section, there is a comprehensive review of the economic consequences through the benefits and costs of drug abuse and trafficking, work, employment and productivity, prices and income, trade and balance of payments, and finance and investment. The third and final section discusses the social consequences of drug abuse and trafficking in relation to family and community, health, education, environment, and crime, corruption and dangers for civil society. This report shows that an assessment of the economic and social consequences of the drug problem can be a difficult one and that the information on the various consequences of drug abuse is unclear. However, it is crucial that the information attained be converted into policy-relevant knowledge. Research results need to be channeled into the process of drug policy development within specific countries, but also on an international level. Figures, references, and appendices I-III

The Federal Government and business community are increasingly recognizing the negative consequences of substance abuse on the U.S. economy and the Nation’s workforce. Abuse of drugs and alcohol is costly for our society and, left untreated, places a burden on our workplace, our healthcare system, and our communities. A number of reports and surveys highlight the detrimental effects substance abuse has on business productivity and competitiveness as it also increases workplace injuries and absenteeism.

The following data provide a stark illustration of consequences of drug use in our society.

Economic Costs

The economic cost of drug abuse in the United States was estimated at $193 billion in 2007,1 the last available estimate. This value includes:

$120 billion in lost productivity, mainly due to labor participation costs, participation in drugabuse treatment, incarceration, and premature death;
$11 billion in healthcare costs – for drug treatment and drug‐related medical consequences; and
$61 billion in criminal justice costs, primarily due to criminal investigation, prosecution and incarceration, and victim costs.

Labor Force

In 2009, the majority (67%) of current drug users aged 18 or older were employed, either full‐time (48%) or part‐time (19%), with the unemployed accounting for 13% and the remaining 21% not in the labor force.
Among full‐time workers aged 18 or older, nearly one in 12 (8%) reported past‐month (current) use of an illicit drug in 2009.3 Unemployed workers were twice as likely – one in six (17%) – to report current drug use in 2009.

Turnover and Absenteeism

From 2002 to 2004, full‐time workers aged 18‐64 who reported current illicit drug use were more than twice as likely as those reporting no current illicit drug use to report they had worked for three or more employers in the past year (12.3% versus 5.1%).
In the same period, full‐time workers who were current drug users were more likely to report missing two or more workdays in the past month due to illness or injury, when compared with workers who were not current users (16.4% vs. 11.0%).
Full‐time workers who were current drug users also were about twice as likely as non‐users to skip one or more days of work in the past month (16.3% vs. 8.2%).

School Performance

Students who are not current marijuana users are more than twice as likely to report an average grade of “A” than those who are current users of marijuana (30.5% vs. 12.5%).
College students who use prescription stimulant medications for non‐medical purposes typically have lower grade point averages and are more likely to be heavy drinkers and users of other illicit drugs. They also are more likely to meet diagnostic criteria for dependence on alcohol and marijuana, skip class more frequently, and spend less time studying.

Resources Available for Employers to Create a Drug‐Free Workplace

Preventing drug use in the workplace and supporting employees in recovery are vital to ensuring a healthy, safe, and productive workforce. The Federal Government provides a number of resources to help employers create an alcohol and drug‐free policy for their companies:

Drug Free Workplace Advisor Provides information for businesses about how to establish and maintain an alcohol‐ and drug free workplace.

http://www.dol.gov/elaws/drugfree.htm

Employers' Kit to Developing a Drug‐Free Workplace The Department of Health and Human Services has created this kit to assist employers in setting a drug‐free workplace policy.

http://www.drugfreeworkplace.org

Working Partners: Guidelines for Developing an Alcohol‐ and Drug‐Free Workplace The Department of Labor has created this guide with the help of industry partners to advise businesses wanting to create a drug‐free workplace policy.

http://www.dol.gov/workingpartners/welcome.html

State and Territory Laws
Many states have regulations that impact when, where, and how employers can implement drug‐free workplace programs. Check this site for a summary of rules that apply to businesses in your state. http://www.dol.gov/asp/programs/drugs/said/StateLaws.asp

Substance Abuse Information Database Learn about workplace substance‐abuse issues and develop drug‐free workplace programs.

http://www.dol.gov/asp/programs/drugs/said/default.asp

Training and Educational Materials Free posters, brochures, and presentation materials.

http://www.dol.gov/asp/programs/drugs/workingpartners/materials/materials.asp

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