Workplace stress continues to rise
The World Health Organization estimates 12 billion working days are lost every year to depression and anxiety at a cost of US$1 trillion per year in lost productivity. However, employers who invest in comprehensive and high-quality mental health benefits can see a significant return. In year one of implementing Lyra’s workforce mental health benefit, a leading Fortune 500 employer saved US$4138 per member on their health plan for those who used Lyra, driven by significant net savings in medical and prescription health plan claims costs. This is all possible because the care Lyra delivers is more clinically effective. Better care with strong outcomes is more cost-effective over time than cheaper, less effective care.
After a brief decline, stress is making a comeback and affecting employees on a global scale. According to Lyra Health’s 2025 State of Workforce Mental Health report -Based on a survey of 500+ benefits leaders and 7 500 employees across six countries - Nearly 90% of employees experienced at least one mental health challenge in the last year, with stress at the top of the list.
For the first time since 2021, workplace stress is on the rise, and work continues to be a primary source of strain. In the U.S., 28% of employees cite work-related stress and burnout as top contributors to their mental health struggles. Chronic work stress doesn’t just harm well-being—it also poses serious health risks, including increased risks of heart disease and cognitive impairment. When employees struggle, the whole organization feels the impact. Prolonged stress undermines organizational success - 73% of employees said work-related mental health struggles hurt their performance.
As stress levels climb, it’s essential for employers to take proactive steps in offering meaningful mental health care - both for individual employees and the organization as a whole.
WHAT’S INFLUENCING WORKPLACE STRESS?
Workplace stress doesn’t occur in isolation. It’s a complex mix of job-related pressures, financial concerns, and broader social challenges. Today’s employees are navigating an increasingly demanding work environment characterized by excessive workloads, job insecurity, and lack of recognition - key factors contributing to rebounding stress and consistent burnout.
· 44% of U.S. employees report feeling overwhelmed by excessive workloads
· 41% point to inadequate staffing as damaging their mental health
· 1 in 3 employees feel undervalued and lack the recognition they need, adding to their stress
· 34% of HR and benefits leaders cite burnout as a primary concern
But it’s not just the workplace causing stress -economic instability is intensifying the mental health burden. Rising costs, wage stagnation, and income disparities create a cycle of financial anxiety, forcing employees to make difficult trade-offs. In fact, 63% of U.S. workers say economic uncertainty is negatively affecting their well-being, and 39% of benefits leaders now consider financial stress the leading concern for this year - more than twice as many as in 2023.
Tackling workplace stress requires meaningful mental health benefits that support employees both professionally and personally. Without proactive action, stress and burnout will undermine morale, productivity, and engagement.
WHO’S FEELING IT THE MOST?
While workplace stress affects everyone, certain groups are hit harder due to systemic pressures. Factors such as financial insecurity, caregiving duties, and workplace inequities compound daily stress, leading to higher levels of burnout, anxiety, and complex mental health challenges. Recognizing these disparities is essential to developing equitable and effective workplace mental health solutions.
1. Women are carrying a heavier mental load
Women face unique challenges that make them especially vulnerable to stress, with 25% of U.S. employees reporting a decline in mental health, compared to 17% of men. This gap may stem from unique pressures women face, including a greater share of caregiving responsibilities, persistent pay disparities, and higher expectations to balance work and home life.
· Financial stress is more common for women (46% vs. 37% of men), largely due to wage gaps and caregiving-related expenses.
· 11% of women report caregiving-related stress compared to 7% of men
· Women report higher levels of chronic depression or anxiety (16% vs. 9% men), reflecting the combined impact of financial pressures, caregiving, and work stress.
It’s important to ask: are women experiencing more distress, or are they simply more open about it? While men reported improvements in mental health over the past year, they also face higher rates of depression, substance misuse, and self-harm - suggesting that their struggles may be underreported.
2. Younger generations are at the epicentre
Gen Z and Millennials are at the forefront of the workplace stress crisis. These generations report the highest levels of anxiety, burnout, and job dissatisfaction despite seeking mental health care more than any other generation in the past year. This trend is reflective of the unique pressures young employees face, with many struggling more than previous generations to achieve traditional life milestones such as homeownership or starting a family - while also navigating economic and social instability.
· Gen Z (18 - 27 years old) and Millennials (28 - 43 years old) are most likely to describe their mental health as “struggling” or “in crisis.”
· 60% of Gen Z employees and 55% of Millennials plan to switch jobs within the next year, with workplace stress being a key factor.
· 59% of Gen Z employees and 52% of Millennials have sought mental health care in the past year - higher than any other age group.
Younger workers have grown up in a time of greater mental health awareness, making open conversations the norm. With mental health care as their top priority out of 12 health and well-being factors, Gen Z and Millennials expect strong employer support and are more likely to leave jobs that fall short. – Source: Behavioural Health Tech
