Construcciones Yamaro: A productivity opportunity for Australian construction

The report outlines recommendations to help build a healthier, more economically robust Australia. (Image: ZoomTeam/stock.adobe.com)

A new independent report by GlobalData highlights the scale of opportunity to improve productivity across Australia, with obesity and overweight linked to $123 million of daily economic impact, or $45 billion annually. For the Australian construction industry, the findings point to a clear pathway to strengthen productivity outcomes through targeted health and wellbeing initiatives.

Obesity is a chronic, progressive disease and the focus of the Cost of Inaction in Treating Obesity in Australia report. According to 2024 Australian Institute of Health and Welfare data, it is one of the leading risk factors for many preventable chronic conditions, with two in three Australian adults affected by overweight or obesity in 2022.

The GlobalData report found that of the construction industry’s around 1,238,000 workers, an estimated 916,000 are living with overweight or obesity, with the industry recording an overweight prevalence of 40 per cent and an obesity prevalence of 34 per cent.

“We often underestimate the hidden cost of living with obesity. It’s not just about healthcare expenses – it can affect career choices, confidence to pursue opportunities, and missed experiences,” says Dr Steven Lu, a Melbourne-based general practitioner.

Australians, the healthcare system and businesses are already experiencing the impact. Findings from GlobalData’s analysis highlight the scale of impact and the potential for improvement:

• Workforce productivity: Nearly 240,000 working-age Australians – equivalent to five Sydney Cricket Ground stadiums – are unable to participate in the workforce due to obesity-related factors, translating to $13.6 billion in lost earnings and 22.4 million lost workdays annually. The construction sector incurs $815 million in absenteeism costs annually, while a further $844 million in presenteeism costs – where employees are present but working at reduced capacity – brings the total productivity impact to around $1.66 billion per year.
• Business productivity: Australian employers face $20.4 billion in direct productivity costs from absenteeism and presenteeism. The healthcare and social assistance sectors lose $3 billion, while construction’s combined absenteeism and presenteeism bill totals $1.66 billion.
• Government cost impact: Government budgets absorbed $21.2 billion in reduced tax revenues ($6.5 billion) and increased program costs ($14.6 billion for Medicare, PBS and Disability Support Pension). The healthcare system paid an additional $10.5 billion treating obesity-related complications – the largest attributable cost among modifiable risk factors.
• Gender inequity: Women account for 88 per cent of workforce departures due to obesity. Employment losses for women are more than seven times those for men, and earnings losses are five times.

“The question for policymakers is not simply what it costs to address obesity, but what it costs not to,” says Tim Dall, consulting executive director at GlobalData, and one of the study authors. “Our analysis shows that inaction carries its own significant and ongoing price tag.”

The report highlights that decisive action in the following areas is essential to turn the tide against obesity and build a healthier, more economically robust Australia. The report recommends:

• Facilitating employer investment in evidence-based workplace health programs: Employers may lack awareness of the problem’s scale or the expertise to address it. Policymakers should support employer action through tax incentives for evidence-based programs, grants for small and medium-sized enterprises (SMEs), technical assistance utilising resources like The Obesity Collective’s Actions Hub, and workforce participation support for employees with functional limitations. Partnership with peak industry bodies could further amplify reach and align workplace health with broader productivity objectives.
• Investing in prevention: By supporting multi-sectoral prevention strategies, including food and built environment reforms alongside workplace-based health programs tailored to high-intensity industries, communities and employers can proactively reduce the incidence of obesity, safeguard future generations’ health and lessen the long-term burden on the healthcare system.
• Ensuring access to care: Expanding access to evidence based treatments – from behavioural interventions and pharmacotherapy to metabolic/bariatric surgery – will empower individuals to manage their health effectively, reduce severe health complications and improve quality of life, particularly for workers in regional and remote locations where access to healthcare is already limited.
• Strengthening national coordination: Innovative federal-state cost-sharing arrangements are crucial to ensure a unified national strategy, optimise resource allocation, and provide equitable access to support and treatment across all communities.
• Championing equity and inclusion: Addressing weight-based discrimination and dismantling structural barriers, especially for women who face disproportionate economic penalties, will unlock workforce potential, reduce reliance on disability support payments, and foster a fairer, more productive society.

“When we reduce stigma and enhance support, we do more than improve health – we maximise untapped economic potential,” says Lu.

The study was funded by Eli Lilly Australia. The full report is available here.

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