What is the relationship between drug abuse and labor market outcomes?

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Drug abuse has a significant negative impact on labor market outcomes:

Individuals who abuse drugs are less likely to be employed and more likely to experience unemployment compared to non-users. Drug use can lead to decreased productivity, increased absenteeism, and poor job performance.

The economic costs of drug abuse due to lost productivity are substantial, estimated at $120 billion annually in the U.S. alone. This includes costs from premature mortality, disability, and crime related to substance use disorders.

Unemployment can also exacerbate drug use, as individuals may turn to substances to cope with the stress and lack of structure. However, the relationship is complex and bidirectional.

Effective treatment and prevention programs are crucial to improving labor market participation and productivity among those struggling with drug abuse.