The number of staff taking time off due to job stress has increased by 25% and total time off due to psychological problems by more than a third, research has found.
The Society of Occupational Medicine claimed the study results show firms should use occupational health services or risk long term damage to productivity.
A study published in the scientific journal, Occupational Medicine, shows that work related stress increases by 40% during an economic downturn, a stark warning to employers as Britain's economic prospects suggest a ‘double dip' recession.
The study, undertaken by researchers at the University of Nottingham and University of Ulster, questioned tens of thousands of civil servants in Northern Ireland.
It compared the findings of two surveys. The first was conducted in 2005 prior to the onset of the recession and the second in 2009 whilst the economy was severely hit.
Dr Henry Goodall, President of the Society of Occupational Medicine, said: "Occupational health provision is even more important in times of recession as specialists can help with the stress caused by mounting workloads, organisational change and job uncertainty."
The findings suggest that those businesses which seek to reduce work-related stress during austere economic times are likely to experience lower staff absence and greater productivity."
Depression and anxiety are now the most common reasons for people starting to claim long-term sickness benefits.
Goodall added: "When recession hits, management needs to be pro-active in letting staff know what is happening so that they remove any uncertainty. When people are worried about their job security they can sometimes over interpret signals and hold irrational beliefs. Clear and timely communication is vital."