New study reveals ‘huge’ impact of concussions on income and employment in New Zealand
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New study reveals ‘huge’ impact of concussions on income and employment in New Zealand

A new study from Auckland University of Technology (AUT) sheds light on the significant impact concussions can have on the earnings and employment of New Zealanders.

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

This equates to a staggering $600 million in lost income for an estimated 25,000 adult New Zealanders who suffer a mild traumatic brain injury (TBI) each year.

Professor Alice Theadom, director of the Traumatic Brain Injury Network at AUT, says she was surprised by the scale and durability of the impact on income.

“While many people with mild brain injury return to work quickly, chronic symptoms, such as extreme fatigue and the inability to think clearly, sometimes make it difficult for people to perform at their pre-injury level,” Professor Theadom says.

“As a result, employees often have to reduce their hours or responsibilities, and may ultimately be forced to resign from their jobs.”

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

Overall, after four years, earnings are about one third lower than they would have been had the accident not occurred.

Dr Lisa Meehan, deputy director of the AUT New Zealand Policy Research Institute and co-author of the study, says that for other minor injuries, the impact on income tends to wear off quickly, but unlike other minor injuries, the impact of brain injuries on income lasts longer.

“The economic and societal costs of mild brain injury are enormous – our research highlights the value of investing in timely diagnosis and treatment to mitigate these long-term effects,” he says.

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

And because injuries can be invisible, it can be difficult for employers and coworkers to determine how best to support employees with brain injuries, Theadom says.

“You can’t see a brain injury the way you can see a broken leg. A colleague might look fine, but he’s got problems,” he says.

The AUT research team used Stats NZ’s integrated data infrastructure to compare employment status and monthly earnings of people before and after brain injury.

The authors recommend that people who have suffered a head injury follow these guidelines:

  • Medical advice should be sought immediately to be evaluated for a possible concussion.
  • If the patient does not recover within 7-10 days, specialist concussion services are available throughout New Zealand to provide support and assistance.
  • Employers should consider flexible working arrangements to assist a person in their recovery from a brain injury. Work with the person to find out what aspects of their job they find difficult and identify potential solutions.