Rising financial worries and poor mental health drive productivity losses across Canada’s workforce
A growing number of Canadian employees are reporting that financial stress and mental health challenges are eroding both their wellbeing and their productivity, according to the 2025 TELUS Mental Health Index and Barometer.
Nearly half of employees say that financial concerns are their primary source of personal stress, and almost one-third do not have emergency savings—a group whose mental health score is nearly 15 points lower than the national average and 20 points lower than those with emergency savings, as reported by TELUS Health.
Women are particularly affected, being more likely than men to feel financially vulnerable and to have reduced spending on health and wellness.
The data also show that workers over 50 are 80 percent more likely than those under 40 to feel confident in meeting their needs, while non-parents are 50 percent more likely than parents to feel financially secure.
The impact of these pressures is not limited to personal wellbeing.
Seventy percent of employees indicate a recent decline in work productivity, with 29 percent attributing this directly to their mental health, according to the Mental Health Barometer.
High workloads, social isolation, and lack of trusted relationships at work are amplifying these effects.
Employees without emergency savings are five times more likely than those with savings to say their financial situation has negatively impacted their work productivity in the last three months.
Workers under 40 are three times more likely than those over 50 to report this impact.
Anxiety and isolation remain persistent challenges, with 33 percent of workers reporting feeling anxious and 31 percent feeling isolated.
Generation Z employees are three times more likely to report feeling isolated compared to Boomers.
Since 2020, women have consistently had lower mental health scores than men, and at the start of 2025, the gap was nearly six points.
Workplace culture and leadership play a pivotal role in shaping these outcomes.
Employees who perceive they cannot speak up about concerns at work without fear of punishment or humiliation have a mental health score that is 17 points lower than those who feel safe speaking up, as found by TELUS Health.
High-trust organizations see 76 percent of workers reporting higher engagement.
However, many employees remain unaware of available mental health and wellbeing programs, with 60 percent not knowing if their employer offers any education on mental health or wellbeing, and 55 percent unaware of Employee Assistance Programs.
The reports highlight the need for organizations to prioritize mental health by offering regular education and training, promoting open conversations about mental health, and providing targeted support for women and younger employees.
Training managers to build trust-based relationships and equipping them to address stress at its source are also recommended strategies.
Access to comprehensive wellbeing services and financial literacy support is linked to improved job satisfaction, retention, and productivity, as per the Mental Health Barometer.
