To investigate the joint, prospective associations of physical inactivity and insomnia symptoms and productivity using the 2013 and 2014 household income and labor dynamics in Australia Survey panel data. The association between (i) presenteeism (yes/no, n = 5864) and (ii) absenteeism (sick leave days, n = 4324) and the mutually exclusive groups "active without insomnia," "active with insomnia," "inactive without insomnia," and "inactive with insomnia" was assessed. Participants "active with insomnia" or "inactive with insomnia" had greater odds of presenteeism than those "active without insomnia" (odds ratio [OR] = 1.41, 95% confidence interval [CI]: 1.07 to 1.85 and OR = 1.44, 95% CI: 1.14 to 1.83, respectively). Participants "inactive with insomnia" had a greater incidence of absenteeism than participants "active without insomnia" (incidence rate ratio [IRR] = 1.28, 95% CI: 1.07 to 1.54). Findings suggest improving physical activity levels and insomnia symptoms concurrently may improve productivity by reducing presenteeism and sick leave.