OBJECTIVES: Hypoglycemia can result in productivity loss and increased healthcare resource use in patients with type 2 diabetes (T2D). Previous research has focused on severe hypoglycemic events, this study sought to estimate work productivity loss and costs associated with hypoglycemic events of all levels of severity.  METHODS: We identified adults with T2D who responded to the 2013 U.S. National Health and Wellness Survey. The study population included patients who reported a diagnosis of T2D and current treatment with an antihyperglycemic agent. Respondents were categorized into one of 3 groups based on whether an event occurred in the preceding 3 months: no hypoglycemic event (NE), non-severe event (NSE), or severe event (SE). Among those who reported hypoglycemia, SE was defined as requiring third-party assistance. Work productivity loss was measured using the Work Productivity and Activity Index. Direct costs were estimated from self-reported healthcare use. Indirect costs were calculated by combining data from the Bureau of Labor Statistics and productivity loss. Multivariable regression models were used to adjust for baseline differences in patient characteristics. RESULTS: Of 3,630 respondents, 47.6% reported a NSE and 4.7% reported a SE. Increasing severity of hypoglycemia was associated with an increase in mean absenteeism (NE=5.7%, NSE=4.0%, SE=15.3%; p-trend <.01), presenteeism (NE=17.7%, NSE=18.7%, SE=31.1%; p-trend < .01), overall work impairment (NE=21.4%, NSE=20.8%, SE=37.9%; p-trend <.01), and activity impairment (NE=35.2%, NSE=38.6%, SE=49.9%; p-trend <.01). Hypoglycemia severity was also associated with higher mean indirect costs (NE=$7,247.8, NSE=$7,493.1, SE=$12,166.6, p-trend=.008) and direct costs (NE=$6,908.3, NSE=$7,131.8, SE=$15,410.4, p-trend<.001). CONCLUSIONS: This study suggests that hypoglycemia severity is associated with an increase in work productivity loss and higher costs. Hypoglycemia can pose a significant economic burden on patients, employers and healthcare systems and varies by the severity of hypoglycemic events.