New Study Reveals “Massive” Impact Of Concussions On NZ Incomes And Employment

A new study by Auckland University of Technology (AUT) sheds light on the substantial impact of concussions on Kiwis’ earnings and employment.

The findings show even a mild brain injury can lead to long-term loss of income. According to the study, published in the journal Health Economics, the losses amount to $25,000 within the first four years after the injury.

This equates to a staggering $600 million in lost earnings for the approximately 25,000 New Zealand adults who experience a mild traumatic brain injury (TBI) each year.

Professor Alice Theadom, Director of AUT's Traumatic Brain Injury Network, says she was surprised at the magnitude and duration of the impact on income.

“While many people return to work quickly after a mild brain injury, chronic symptoms such as extreme tiredness and an inability to think clearly means that people sometimes struggle to perform at their pre-injury levels,” Professor Theadom says.

“As a result, workers often have to reduce their hours or levels of responsibility; eventually, they may have to give up their jobs.”

The study found that after sustaining a brain injury, employment and earnings do not recover quickly; instead, they continue to decline over time. The study found that earning losses reach more than $3,000 in the first year after the injury and escalate to nearly $9,000 by the fourth year.

Essentially, after four years, earnings are approximately one third less than what they would have been without the injury.

Dr Lisa Meehan, Deputy Director of AUT's NZ Policy Research Institute and co-author of the study, says the impact of the injury on income tends to resolve quickly for other minor injuries, but unlike other minor injuries the effect of TBIs on income persists over an extended period.

“The economic and social costs of mild TBIs are massive – our research highlights the value of investing in timely diagnosis and treatment to mitigate these long-term impacts,” she says.

Approximately 35,000 New Zealanders, of all ages, experience mild TBIs (like concussion) each year. While contact sports are often associated with traumatic brain injuries, less than a third of these injuries are sports related. Most TBIs occur because of falls during everyday activities.

And because the injuries can be invisible, it can be hard for employers and colleagues to know how to best support workers with TBIs, says Theadom.

"You can’t see a brain injury like you can see a broken leg. A colleague might look fine even, though they are struggling,” she says.

The AUT research team used Stats NZ's Integrated Data Infrastructure to compare individuals' employment status and monthly earnings before and after their brain injury.

The authors recommend the following guidelines for individuals who have experienced a head injury:

Seek medical advice promptly to be assessed for possible concussion.

If natural recovery does not occur within 7-10 days, specialist concussion services across New Zealand are available to provide support and assistance.

Employers should consider flexible working arrangements to aid in an individual's recovery from a brain injury. Work together with the person to find out what aspects of their work they are finding difficult and identify potential solutions.

Read the article in Health Economics: The effect of a minor health shock on labor market outcomes: The case of concussions

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