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OPIOID – the fault line

July 14, 2017 | Expert Insights

Opioid abuse and the resulted decline in labour force participation are analogous. This is an inference made by the Chair of the Board of Governors of the Federal Reserve System, Janet Yellen.

According to Goldman Sachs, opioid abuse is one of the reasons why many people are not seeking work.  The Centre for Disease Control estimates that prescription drug abuse costs about $78.5bn (£61.5bn) annually. This cost is related to increased cost of health care, loss of productivity, and those associated to criminal activity.

The Crisis

It is estimated that more than 90 Americans die daily from overdose of opioids. The addiction to opioids akin to heroin and fame relievers is a serious matter. It affects public health as well as social and economic welfare.

Analysis

It is unclear whether opioid abuse is a symptom of economic malaise. Economists are perplexed over the decline in labour force participation rates, the share of people looking for jobs. This index has declined from 67% in the 1990s to 63% in 2017. The decrease is more pronounced among men. In the intervening period, the percentage of women who looking for jobs has increased from 42% to nearly 57%.

Assessment

Our assessment is that, the continued use of opioids will affect public health safety with mortifying consequences. It will also lead to the rise in incidences of neonatal abstinence syndrome due to opioid use during pregnancy. The increased use of drugs administered intravenously significantly advances the incidents of HIV and Hepatitis C. It is extremely important for public health authorities to find whether there is a direct link between the use of chemically administered drug and the loss of productivity.