Policy Brief

Supporting the Well-Being of Canadians

Post-COVID19: Increasing Productivity in
the Canadian Economy by Filling the Gap
in Mental Health Services
Introduction: Outlining Key Economic Issues Associated with Mental Illness

Since the impact of COVID-19, our society has learned to alter our ways of care.
Economically and more specifically, medically, we have seen so many changes made to
systems that have been in place for decades, in a matter of months. Canada’s universal
healthcare system suffered immense pressure from COVID-19 and is still amid recovery. As
we navigated change, it highlighted problems in a specific area of our system that failed
many Canadians. Long wait times for almost all healthcare programs had the system at its
breaking point, a similar feeling for most Canadians awaiting medical treatment. There are
various opportunities to reallocate the federal government's budget with mental health-related
programs, both beneficial to the government and the population of this country. Funding
more in-person services to eliminate private costs, Incentivizing students to specialize in a
mental health-related field, and increasing available professionals at Universities in Canada,
will overall increase well-being and happiness, leading to higher productivity in the
workforce, more spending and a thriving economy.

Costs are Adding Up:

The costs to society related to mental illness in Canada are estimated to run over $50
billion annually, including healthcare costs, productivity lost in the workplace, and thus the
reduction in health-related quality of life1. The government has recognized the cause of the
pandemic and mental health related issues, subsidizing certain programs to improve
happiness and well-being in Canadians. In most cases, more freedom leads to more
happiness, and happiness and income are interconnected2. As Chapter 3, ‘Measure for
Measure’, in Dinner Party Economics mentions, higher measures of Human Development
and productivity are connected to human happiness, and as we return to normality
post-COVID19, we must find a way to get there.

Evidence Suggesting Change: Recognizing a Change in Needs Post-COVID19

Research from UNICEF revealed in 2021 that more than 1 in 7 adolescents aged 10 to
19 are estimated to be undiagnosed with a mental disorder globally3. Furthermore, only 2 %
1 Centre for Addiction and Mental Health. (2022). Mental Illness and Addiction: Facts and Statistics. CAMH.
https://www.camh.ca/en/driving-change/the-crisis-is-real/mental-health-statistics#:~:text=However%2C%20it%20only%20receives%20about%207%25%2
0of%20health%20care%20dollars.&text=The%20Mental%20Health%20Strategy%20for
2 Dinner Party Economics, Chapter 3 Measure for Measure, P.17

3 Impact of COVID-19 on poor mental health in children and young people “tip of the iceberg” – UNICEF. (n.d.). UNICEF Canada : For Every Child.

Retrieved March 13, 2023, from

of world-wide government health budgets are allocated to mental health. In Ontario alone,
mental illness related disorders take up approximately 11-15% of the total disease burden
with only 7% of the allocated budget4. There is an obvious gap in funding.

With copious amounts of evidence that 1 in 5 Canadians are affected by mental illness
in a given year5, why has the federal government not allowed all mental health services to be
a part of Canada’s publicly funded universal health care system? This shortage of services is
ongoing, and the impact has been recognized with an increase in funding for mental health
related causes, but I believe the allocation could be changed to better the development of
society, and productivity of the economy.

Australian Government Statistics Show Success in Investing in Mental Health:

Though all provinces and territories have their own separate systems, the Federal
Government of Canada is responsible for supplying funding to these systems. Responsibility
also falls on setting and administering national standards for the healthcare system through
the Canada Health Act, and providing tax support for health-related costs, and tax credits for
disability, medical expenses, caregivers and disabled dependents, and so on6. Access to
evidence-based psychotherapy programs, such as those almost completely publicly funded in
Australia7], have seen positive outcomes economically and socially. A $2 return for every
dollar invested, and Improved health outcomes associated with reduced hospitalizations,
fewer suicide attempts, and fewer suicides8, benefitted millions. A 2022 report detailed that
many Canadians relied on employee benefits and paying out-of-pocket for private mental
healthcare services ensuring faster, more reliable support. This totaled over $1 billion9.

https://www.unicef.ca/en/press-release/impact-covid-19-poor-mental-health-children-and-young-people-tip-iceberg-unicef?ea.tracking.id=20DIAQ01OTE&
19DIAQ02OTE=&gclid=CjwKCAiAu5agBhBzEiwAdiR5tEfYzfYvef7_Z2AWnoiI5vgGrl6KzW0T6n55MrVOqZMBU5mecDaIrRoC32AQAvD_BwE
4 Centre for Addiction and Mental Health. (2022). Mental Illness and Addiction: Facts and Statistics. CAMH.

https://www.camh.ca/en/driving-change/the-crisis-is-real/mental-health-statistics#:~:text=However%2C%20it%20only%20receives%20about%207%25%2
0of%20health%20care%20dollars.&text=The%20Mental%20Health%20Strategy%20for
5 Centre for Addiction and Mental Health. (2022). Mental Illness and Addiction: Facts and Statistics. CAMH.

https://www.camh.ca/en/driving-change/the-crisis-is-real/mental-health-statistics#:~:text=However%2C%20it%20only%20receives%20about%207%25%2
0of%20health%20care%20dollars.&text=The%20Mental%20Health%20Strategy%20for
6 Government of Canada. (2016). Canada’s health care system - Canada.ca. Canada.ca.

https://www.canada.ca/en/health-canada/services/canada-health-care-system.html
7 Australian Government. (2021). Expenditure - Mental health - AIHW. Australian Institute of Health and Welfare.

https://www.aihw.gov.au/mental-health/topic-areas/expenditure
8 Canadian Mental Health Association. (2022). FEDERAL PLAN FOR UNIVERSAL MENTAL HEALTH & SUBSTANCE USE HEALTH.

https://www.actformentalhealth.ca/wp-content/uploads/2022/11/AfMH-White-Paper-EN-FINAL.pdf
9 Ibid.
 2022-23 Federal budgets have stressed the importance of mental health support, and
an increase in funding, but evidence in the population of Canadians shows that funding could
be shifted and used more intuitively to further benefit the population. Budgetary matters are
fiscal policy, and what a government prioritizes in its annual budget tells you a lot about a
government10. The issue is related to a recessionary gap in mental health services available
publicly, and the approach we need to take to fix this is through fiscal changes to the federal
budget.

Current Success in Budgeting Mental Health Services:

The Federal Government of Canada noticed the upward trend in mental illness cases
amidst the pandemic and lockdowns, and in four weeks constructed an online portal for
Canadians to access mental health services virtually. Since its successful launch in 2020, the
Federal Budget has allocated $140 million over 2022-23 towards the ‘Wellness Together
Portal’11. With over 1.2 million users in the first year, this has been a helpful tool for many
Canadians that experience long wait times for service, to fill the gap for mental healthcare.
This has shown much success and promise among young Canadians, with nearly 50% of the
users being under the age of 3012.

10 Dinner Party Economics, Chapter 11 - Policy Matters

11 Government of Canada, D. of F. (2022, April 7). Chapter 6: Strong Public Health Care | Budget 2022. Www.budget.canada.ca.

https://www.budget.canada.ca/2022/report-rapport/chap6-en.html#2022-2
12 Yousif, N. (2021, May 8). A national online mental health portal had 1.2 million users in its first year. Is Wellness Together Canada here to stay?

Thestar.com.
https://www.thestar.com/news/canada/2021/05/08/a-national-online-mental-health-portal-had-12-million-users-in-its-first-year-is-wellness-together-canada-
here-to-stay.html
Future Success in Budgeting Mental Health Services for University Students:

As shown by the statistics of the Wellness Together Portal, the Canadians most
affected are young adults and adolescents under 30. Focusing on improving service success
rates for this population is most important due to the impact they will have entering the
workforce and future unemployment rates. Young Canadians make up a very large portion of
those accessing mental health programs breaking stigmas and valuing self-care and
rehabilitation. University students are among this age group and with newfound
independence, stress and anxiety services are often overwhelmed or not easily accessible
without referral or previous diagnoses. By the time Canadians reach 40 years of age, 1 in 2
have or have had experience with mental illness13. This demographic currently occupies 50%
of Canada’s population14 and generationally prefers traditional in-person services.

Increasing the number of certified professionals that are available to university

campuses, and other establishments would help take some weight off the overwhelmed
sectors. Targeting this issue will ultimately increase wellbeing by decreasing wait times,
increasing patients that can be seen, and improving the mental health of Canadians overall.
Catering to all Canadians is difficult as we carry a diverse portfolio of citizens, thus, having
options between forms of counseling should be available, not just because one is free, and
currently available, like the Wellness Portal, and one is not.

Incentivizing Young Adults to Specialize in Mental Health-Related Fields:

Allocating part of the federal budget directed to the Wellness Portal, to create
incentives and subsidies for programs to train and educate more mental health specialized
medical personnel could slowly take strain off the healthcare system, and ensure more
Canadians have access to mental health services in the future. If Canadians can access more
services, and save on private care, the multiplier effect15 will increase spending in other areas
of the economy. Fiscal policy changes to create this program will ultimately help the
Canadian economy, starting with healing the workers that run the country.

13 Centre for Addiction and Mental Health. (2022). Mental Illness and Addiction: Facts and Statistics. CAMH.

https://www.camh.ca/en/driving-change/the-crisis-is-real/mental-health-statistics#:~:text=However%2C%20it%20only%20receives%20about%207%25%2
0of%20health%20care%20dollars.&text=The%20Mental%20Health%20Strategy%20for
14 Government of Canada, S. C. (2022, July). Population estimates on July 1st, by age and sex. Www150.Statcan.gc.ca.

https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=1710000501&pickMembers%5B0%5D=1.1&pickMembers%5B1%5D=2.1&cubeTimeFrame.startYe
ar=2022&cubeTimeFrame.endYear=2022&referencePeriods=20220101%2C20220101
15 Dinner Party Economic, Chapter 11 - Policy Matters
Conclusion: Prioritizing Mental Health and Well-Being of Canadians for the Good of our
Economy

For most Canadians the change in society with increased mental health services and
support are not noticeable by eye. Through analyzing economic data, the multiplier effect
will prevail. We can noticeably see increases in productivity, income, happiness, and overall
well-being through economic analysis of GDP over consecutive periods, and increased
spending through consumers, firms, government and foreign trade16.

The federal government has taken initiative to take the burden off the healthcare
system with a virtual platform but could be doing more to take the burden off the public
sector and save Canadians Billions in private costs. As the world bounces back mentally from
the effects of the pandemic, and lockdowns the federal government could be shifting the
budget to create a program that will incentivize education and training in mental health
related fields. Creating more specialists available for University students and ensuring all
citizens of Canada can get the type of mental-health-care that works best for them is crucial.
If the Government of Canada cares about the mental health of its people as they say they do,
they will do more to create less barriers to services and provide more options to the people
that need them.

16 Dinner Party Economics, Chapter 5 - An Assortment of Gross Products