Economic Impact of Substance Abuse in Oregon

By Mimi Bushman, Oregon Employer Drug-Free Initiative

Oregon leads the nation in virtually every measure of substance abuse. The rate of marijuana use by adult Oregonians is 50% higher than that of the nation, and Oregon is one of the top seven marijuana-producing states. Oregon ranked seventh in the nation for methamphetamine abuse and fourth nationally in prescription drug abuse in 2007. Oregon adults have higher rates of alcohol abuse, and alcohol use by Oregon 8th graders is 76% higher than the national rate. Eighth and eleventh graders in Oregon are more likely to smoke marijuana than cigarettes.

The cost of substance abuse to the Oregon economy was a staggering $6 billion in 2006, the equivalent of the entire K-12 education budget. This included $4.15 billion in lost productivity, which directly affects business competitiveness, and $1.5 billion in other costs, such as health care, crime, and social welfare programs. For example, 62% of children placed in foster care in Oregon were removed from their home because of parent drug abuse, and 70-80% of inmates have substance abuse problems ranging from moderate to severe addiction.

Every company in Oregon – large or small – faces its own set of cost implications. Employees who use drugs cost their employers twice as much in medical claims and are five times more likely to file a worker’s compensation claim. They have higher instances of theft, turnover, absenteeism and workplace violence, and are a high safety risk in hazardous occupations. Employees who use drugs are routinely less productive at work and the quality of their performance, as well as the volume of work they are able to accomplish, suffers measurably.

In addition, businesses in five of nine Oregon Business Plan bus tour stops reported drug use was a key obstacle to hiring otherwise qualified workers. In Oregon, the drug test failure rate is 6%, but in some locales, smaller businesses report a 60-80% pre-hire failure rate. All but 80 of 300 applicants failed the drug test at a large retailer opening on Oregon’s coast last fall.

National studies have shown, however, that Drug-Free Workplace programs help employers create safe and healthy workplaces. The Oregon Employer Drug-Free Initiative (OEDI) was launched in January, 2006 as an Oregon Business Plan Initiative to significantly increase the percentage of employers with drug-free workplace programs.

Statewide surveys conducted by Oregon Employment Department for OEDI in 2006 and 2008 showed that only 12% of Oregon businesses have such programs in place. The primary benefit reported was a safer and more productive workplace. Barriers identified included denial of any workplace drug problem, concern over the program’s cost, and the fear of losing hard-to-replace employees.

To assist businesses in overcoming these barriers, OEDI offers education and training by Oregon’s top drug-free workplace experts through a network of 14 local partners, including now the Wilsonville Chamber of Commerce.

If you would like to learn more about participating on the Chamber’s Drug Free Workplace Committee, please contact Brandi Hereford, Membership & Events Director, at Brandi@WilsonvilleChamber.com or by calling 503-682-0411.