Growth-obsessed economy severely affects poor people’s mental health, UN expert says

UN Special Procedures @UN_SPExperts

Government policies aimed at driving economic growth are severely impacting the mental health of people living in poverty, according to a new report by the Special Rapporteur on extreme poverty and human rights, Olivier De Schutter. De Schutter cautioned that prioritising an increase in GDP at any cost is leading to a “tidal wave of mental ill health” among impoverished individuals.

While 970 million people—about 11% of the global population—experience a mental health condition, those with lower incomes are up to three times more likely to suffer from depression, anxiety, and other common mental illnesses compared to individuals with higher incomes.     

“The mental health impacts of living in a world in thrall to growth, obsessed with productivity and competitiveness, are increasingly recognised as contributing to ‘burnout’ among white-collar professionals,” De Schutter said.

“Yet it is people living in poverty, working mostly in informal or precarious jobs, that suffer from this condition the most while having the least resources to cope – creating a mental health crisis that is largely ignored and unseen.”

The report explains how changes in working conditions and efforts to make labour more flexible have significantly contributed to the rise of mental health issues among individuals with low incomes.

Decisions made “in the pursuit of growth” have shifted away from standard employment contracts, increasing casual or self-employed part-time work. Consequently, this has reduced worker protections and wages.    

“Shockingly, in today’s 24/7 gig economy, unemployment can sometimes be a healthier option than taking a job,” De Schutter noted.

“While unemployment can increase the risk of mental health conditions, doing precarious work has been found to lead to even worse mental health outcomes – due to insecurity, lack of bargaining power, unfair pay and wildly unpredictable work schedules which make it impossible to manage a healthy work-life balance,” he added.

The expert urged governments to urgently tackle the increase in precarious work by implementing legal protections that ensure decent jobs and a living wage. He recommended establishing scheduling regulations that require employers to provide workers with advance notice of their schedules and compensation if changes occur. Additionally, he emphasised the importance of improving economic security by guaranteeing a minimum number of hours for part-time workers.

The report also highlights that economic security can be enhanced by strengthening social protection measures, such as introducing a universal basic income—unconditional cash payments to all individuals—which has been shown to improve mental health.   

“Our obsession with growth has created a burnout economy – a race to increase the profits of a tiny elite in which millions of people have been made too sick to run,” the Special Rapporteur said.

“Instead of combating poverty, ‘growthism‘ has led us down a path of extreme economic inequality – with disastrous consequences for rich and poor alike, as more unequal societies suffer higher rates of depression, anxiety and other mental health problems,” he emphasised.

“It is only by addressing this broken economic system, and by putting well-being above the endless quest for more, that we can begin to seriously address poverty and the mental health crisis that accompanies it,” highlighted De Schutter.

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