Canada’s economy is losing $100B a year to illness and caregiving: report

Poor health among workers and gaps in caregiving caused Canada’s economy to lose more than $100 billion in 2025, a report by Deloitte Canada estimated on Tuesday.

Canadian workers are being “sidelined by illness, poor mental health, or caregiving responsibilities,” said Michelle Theroux, national health leader at Deloitte Canada.

“Productivity is one of Canada’s most pressing challenges, yet health is rarely considered part of the productivity agenda,” Theroux said, adding that Canada could “cannot expect technology, AI, or workforce upskilling to solve Canada’s productivity challenge.”

The report identifies two kinds of healthcare gaps that are dragging the economy down. The first is the “prevention gap,” which reflects productivity lost to preventable illnesses. Time away from work due to illness caused $55.1 billion in economic losses, it found.

The second gap is the “participation gap” which reflects workers missing work due to “chronic disease, mental health challenges and caregiving responsibilities.”

The Canadian economy lost $48.5 billion in 2025 in labour income lost due to unpaid caregiving responsibilities, the Deloitte report added.

Another $1.1 billion was lost because of “premature mortality” during the period required to replace and train workers, it added.

Reducing health-related barriers to workforce participation could recover more than $25 billion annually, it said.

The report recommends enrolling every Canadian in a “Health Home” or an integrated system of primary and preventative care. It also recommends providing financial tools for disease prevention and reducing barriers to participation for people dealing with chronic illnesses and caregiving challenges.

Canada’s caregivers are being financially squeezed as they try to balance having a career with taking care of loved ones who need them, a survey by the Canadian Centre for Caregiving Excellence said earlier this year.

Around six in 10 (59 per cent) said they are juggling their caregiving duties with their careers, while 36 per cent said caregiving had hampered their productivity and caused them to lose earnings.

One in four Canadians is currently a caregiver and at least half will take on the role at some point in their lives, contributing an estimated $97 billion in unpaid labour each year, the report from the Canadian Centre for Caregiving Excellence (CCCE) shows.

Professional care is also getting harder to find for many Canadians. More than three-quarters (76 per cent) of care providers are considering leaving the profession, citing low wages and safety concerns, the report shows.