A new report by Rest has estimated that poor sleep among employees could be costing the US economy between $428 billion and $867 billion annually in lost productivity, highlighting what researchers describe as an overlooked workforce health and business challenge.
The report, titled The Sleep Tax Report, analysed workforce and financial data across the US civilian workforce and Fortune 500 companies, combining public company disclosures with research from institutions including RAND Europe, Gallup
and the National Safety Council.
According to the findings, Fortune 500 companies collectively could be losing between $76.6 billion and $155 billion annually due to reduced productivity linked to employee sleep deprivation. The report estimates the average annual “Sleep Tax” per Fortune 500 company at between $160 million and $322 million.
Researchers said the analysis was designed using a bottom-up methodology, assessing individual company headcount, industry and revenue data rather than relying solely on broader GDP estimates.The report described poor sleep as a workforce issue affecting both employee wellbeing and organisational performance across industries.
Among the findings:
– Around 13% of workplace injuries were linked to sleep-related issues
– Individuals with self-reported insomnia were found to be 2.3 times more likely to develop depression
– Approximately 12% of US adults meet the clinical threshold for insomnia
– An estimated 76 million workdays are lost annually in the US due to mental health-related challenges
Martín Siniawski, CEO & Co-Founder of Rest, said many organisations remain unaware of the financial impact associated with employee sleep deprivation.“Every Fortune 500 company is quietly losing hundreds of millions of dollars a year to their employees’ poor sleep. Almost none of them are measuring it,” he said.
The report also highlighted the growing overlap between workplace wellbeing, mental health and operational performance, arguing that chronic sleep issues can contribute to burnout, anxiety, lower concentration levels and increased workplace safety risks.
Alongside the economic analysis, the report pointed towards Cognitive Behavioural Therapy for Insomnia (CBT-I) as one of the most evidence-based treatments for chronic insomnia. CBT-I is recommended by the American College of Physicians as a first-line treatment over sleep medication for chronic insomnia.
Rest said its AI-powered sleep coaching platform is based on CBT-I principles and is aimed at improving sleep behaviour through structured digital interventions.Annie Miller, Sleep Expert at Rest said insomnia is often underestimated despite its broader impact on physical and mental wellbeing.
“What makes this report meaningful is that it translates the human impact of poor sleep into terms workplaces can better understand and respond to,” she said.
The findings come as employers globally place greater emphasis on employee wellbeing, burnout prevention and mental health support amid rising concerns around workplace stress, productivity and long-term workforce sustainability.