Across the United States, employees are pushing through levels of strain that are no longer invisible, impacting how they think, perform and engage each day. The latest TELUS Mental Health Index (The MHI) reveals a clear pattern: twenty-four percent of workers say their mental health is impacting work productivity. As well, anxiety and isolation have been the poorest mental health sub-scores for more than three years and mental health scores remain significantly lower than 2019 in all regions of the United States.
This strain is not happening in isolation. Research from the American Psychological Association shows nearly one-quarter of American workers (24 percent), particularly younger adults, now rate their mental health as “fair or poor.” The MHI echoes this trend with consistently elevated anxiety levels fueled in large measure by economic uncertainty, heavier workloads and changing expectations. Together, these trends may suggest that today’s workplace demands more from employees at the very moment many feel they have less to give.
The pressures reshaping today’s workforce
Emotional strain is becoming a defining workplace challenge
Anxiety and isolation continue to stand out as two of the most persistent issues faced by workers. According to The MHI, 28 percent of employees experience frequent anxiety and the isolation sub-score has worsened by nearly two points in June 2025, remaining the second-lowest mental health sub-score for more than three years. These aren’t abstract statistics. They reflect day-to-day realities that chip away at the focus, and energy to problem-solve that workers may otherwise have.
Younger workers, in particular, are experiencing greater emotional strain. The MHI shows that employees under 40 are 40 percent more likely than those over 50 to worry that exposing their mental health challenges could harm their career prospects. While they themselves may not hold stigmatizing attitudes, there is great concern regarding workplace cultures in this respect. The need for psychological safety, the ability to express strain and ask for support without fear, isn’t a luxury, it’s foundational to a work environment that optimizes worker health and productivity. As this generation becomes a larger share of the workforce, employers must recognize and respond to these needs.
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Financial stress is a powerful disruptor of performance
Financial pressure remains one of the most consistent drivers of mental strain. The 2025 TELUS Mental Health Barometer provides a summary of key themes from the TELUS Mental Health Index. The data shows that 44 percent of workers cite personal finances as their top source of stress, and nearly one in four (25 percent) lack emergency savings – a group that consistently records significantly lower mental health scores. This kind of strain doesn’t stay confined. It affects how well people sleep, how confidently they make decisions and how they interact with colleagues. These are the fundamental building blocks of productivity. And when financial stress erodes them, productivity inevitably follows.
Culture and connection are determining factors in whether employees stay engaged
Stress intensifies when employees feel disconnected or unsupported. TELUS Health data shows workers without trusted relationships at work are three times more likely to feel isolated.
Research from MIT Sloan reinforces this point: unhealthy or low trust cultures are far more predictive of turnover than compensation. When communication is unclear, when employees hesitate to speak up or when wellbeing support feels inconsistent, disengagement sets in long before someone leaves. The cost to productivity begins much earlier than the exit.
The common thread is unmistakable: emotional, financial and social pressures are shaping how people perform every day, yet many workplaces treat these realities as external to business strategy, rather than central to it.
Actions employers should take now:
Strengthen manager capability
Managers are key to a healthy workplace experience, as the behavior of managers set the tone of a group. As well, managers can be pivotal in support to employees who are struggling – not by taking on the role of counsellor, but by showing that the wellbeing of employees matter to them, and by reinforcing the value of resources like EAP. Despite this, nearly half of managers say they don’t feel equipped to handle mental health conversations. This is a clear opportunity for training.
Communicate with clarity and consistency
When employees underuse the wellbeing support that is available to them, it is often because information is hard to locate, poorly explained or inconsistently promoted, or just forgotten. Clear, ongoing communication about wellbeing resources builds trust and reduces friction in accessing care. In today’s workplace, communication is not an administrative act, it is a core driver of engagement, confidence and follow through.
Treat financial wellbeing as part of organizational wellbeing
Financial wellbeing is a key element of overall wellbeing. Employers who offer practical support, such as financial education, counselling, planning tools and supplier pathways to benefits, can alleviate one of the most destabilizing sources of employee strain. Addressing financial wellbeing is both a performance and retention strategy.
Create cultures where people feel safe and connected
Trust, transparency and psychological safety are the cornerstones of resilient workplaces. When employees feel safe to speak openly, ask for help and take accountability, teams collaborate more effectively and recover more quickly from stress. These cultures don’t emerge by accident. They require leaders who demonstrate empathy, respond to issues promptly and reinforce with action that wellbeing is an organizational priority.
TELUS Health research shows that employees who rate their employer’s mental health support as excellent have mental health scores 24 points higher and lose far fewer productivity days each year. The takeaway is clear: when organizations invest meaningfully in wellbeing, employees are more likely to be resilient, more engaged and more productive. When they don’t, the impact is equally visible in higher turnover, reduced capacity and a slow erosion of the mental energy needed to innovate.
Moving forward requires a fundamental shift: support for mental health can sit on the periphery as a discretionary program. It must be treated as a core business strategy. When leaders embed concern for wellbeing into culture, communication and daily leadership practices, they not only help employees thrive – they strengthen the long term performance and competitiveness of their organizations.
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