Seventy-five percent of respondents to the survey of 1,000 full-time U.S. employees, commissioned to assess the state of mental health across America’s workforce at the start of 2025, reported experiencing some form of low mood, with the majority attributing it to the turbulence of global politics and current events. Seventy-four percent of employees surveyed expressed a desire for workplace mental health resources specifically tailored to address the anxiety caused by these political and social crises. 

Alyson Watson, founder and CEO of Modern Health, in a statement, said the survey findings underscore a significant challenge: “American employees are struggling with their mental health, with global political turmoil and current events taking a particularly dire toll, and it’s detrimental to how employees are showing up in the workplace.” 

Watson highlighted the urgent need for employers to provide genuine mental health support, as employees and managers are ready to leave if the need is unmet. She emphasized that employers have a responsibility to create environments that promote “resilience, engagement, and long-term success.” 

The survey found mental health challenges from the pandemic endure. Only 16% of those surveyed say their workplace’s current level of mental health support is better now than five years ago, and 58% believe that the pandemic exposed critical gaps in their workplace’s mental health support that have yet to be addressed.

For Gen Z respondents, 58% say life was easier during the pandemic than in early 2025, and 54% report that their mental health has never really recovered since the pandemic. 

“Employers who want to drive long-term success in today’s competitive market should prioritize an authentic and supportive culture in order to enhance workforce resilience, boost productivity, and retain employees,” said Dr. Neha Chaudhary, Chief Medical Officer at Modern Health.

A focus on mental health support as part of a workplace strategy leads to transformative results for both employees and businesses. Workplaces prioritizing mental health see 13% higher productivity, employees are 2.3 times less likely to report feeling stressed, and there is a 2.6 times higher likelihood of reduced absenteeism, a 2023 Gallup Poll found. 

Productivity Suffers 

Lost productivity is a major issue for companies, with 62% of employees disengaged, leading to a global productivity loss of $8.8 trillion annually, according to a 2024 Gallup poll. The Great Resignation highlighted that employees who are unhappy will eventually leave, and in the meantime, disengaged employees cost organizations 18% of their salary in lost productivity.

Mental health issues, particularly depression, lead to significant productivity losses. Employees with unresolved depression experience a 35% drop in productivity, costing organizations $210.5 billion annually in absenteeism, reduced productivity, and medical expenses, according to the American Psychiatric Association.

Cost of Increased Turnover

Both voluntary and involuntary turnover incur direct and indirect costs, including lost knowledge, reduced productivity during transitions, and diminished morale, which can trigger further turnover. The costs of onboarding a new employee can range from 10% to 30% of an employee’s annual salary, depending on the role.

Burnout compounds these issues, leading to serious health problems like anxiety, depression, and heart disease. It also contributes to impaired job performance, increased turnover, and absenteeism. A Gallup study estimates that employee burnout costs global healthcare systems $322 billion annually. 

Stagnant retention, where employees feel trapped in their roles but unable to leave, also leads to significant consequences for both individuals and organizations. McKinsey & Company found that employee attrition and disengagement together cost S&P 500 companies an estimated $282 million annually.