One in three workers ‘merely surviving’; managers hit hardest amid workplace mental health crisis: Study

A growing share of the global workforce is struggling to cope despite expanded access to mental health benefits, according to a new report from Lyra Health, which highlights a widening gap between availability of care and its effectiveness.

The report titled, “The Workforce Mental Health Paradox,” found that more than one in three employees describe themselves as “merely surviving,” while over a quarter say their mental health has deteriorated in the past year.

The findings, based on surveys of 7,500 employees and more than 500 benefits leaders across six countries, suggest that traditional mental health offerings, including Employee Assistance Programs, are falling short in addressing rising and increasingly complex needs. Additional insights:

The report paints a stark picture of a workforce under sustained pressure. Serious mental health needs have surged by 67% over the past year alone, with more employees reporting experiences with severe conditions such as depression, anxiety, and substance use.

Employees are also grappling with what the report describes as an “attention tax,” with one in two workers struggling to stay focused amid financial stress, caregiving responsibilities, and uncertainty around artificial intelligence.

“The question isn't whether mental health support exists, it's whether people can access it early enough, and whether it actually works,” said Alethea Varra, Chief Clinical Officer at Lyra Health. “Employers are seeing that more employees need serious help, and the quality of care matters more than ever.”  

The burden is particularly acute among managers, more than half of whom said their role has negatively affected their own mental health. Nearly half have considered leaving their jobs, underscoring the pressure of acting as frontline support for teams without adequate resources.

“As managers are asked to serve as the first line of support for their teams, our data suggest we’ve left them without the support they need,” said Joe Grasso.

Caregiving responsibilities are adding another layer of stress. Nearly half of working parents supported a dependent with mental health needs this year, with 60% of those caregivers reporting burnout and over one-third citing reduced productivity.

Despite growing awareness, access to specialised care remains uneven. While 91% of benefits leaders say neurodivergent support is a priority, more than half of employees reported difficulty accessing timely, appropriate care. Many also expressed concern that disclosing a diagnosis could negatively affect their careers.

At the same time, artificial intelligence is emerging as both an enabler and a source of anxiety. While nearly half of employees said AI has boosted productivity, 44% fear it could lead to job losses.

The report concludes that simply expanding access to mental health services is no longer sufficient. Instead, it calls for a more strategic approach to benefit design, including clearer pathways to specialised care, neurodiversity-informed providers, and stronger structural support for managers navigating rapid workplace change.

As organisations continue to transform at pace, the findings suggest that without more targeted and effective interventions, workforce resilience may continue to erode, even as support systems expand.