Sleep loss—especially the deprivation of deep (or slow-wave) sleep—is associated with numerous chronic health conditions, such as Alzheimer’s disease, anxiety, dementia, depression, hypertension, and type 2 diabetes. It also negatively impacts cognitive function, attention, and decision-making abilities.

Beyond these health effects, sleep deprivation has significant economic repercussions, costing an estimated $680 billion annually across five OECD countries—$400 billion in the United States and $60 billion in Germany alone. In Australia, the direct and indirect costs of sleep disorders are estimated to equal 1 percent of the GDP.

Sleep-related work absences result in the loss of approximately ten million working hours each year in the United States, 4.8 million in Japan, and 1.7 million in Germany. Furthermore, reduced sleep adversely affects productivity; a study of U.S. companies estimated the annual cost per employee to be between $1,300 and $3,000. Additionally, sleep deprivation not only diminishes employee performance but also increases healthcare costs for employers.