Canadian employee wellbeing falls to new low: report

‘Canadians are navigating real pressures of a challenging few years and it’s showing up in how they feel day-to-day’

By
Jim Wilson
15 Jul. 2026

Canadian employee wellbeing has dropped to its lowest level in at least two years, with financial Canadians are navigating real pressures of a challenging few years and it’s showing up in how they feel day-to-day pressure eroding workers’ mental, physical and financial health across every age group, according to a recent report

Just 56% of Canadian workers rate their overall wellbeing as excellent or good, down nine percentage points from 65% in 2025, report RBC Insurance and Ipsos. 

• Mental health dropped 7 points: 52% (2026) vs. 59% (2025)

• Physical health dropped 6 points: 53% (2026) vs. 59% (2025)

• Financial health dropped 2 points: 42% (2026) vs. 44% (2025)

Youngest and oldest workers hit hardest

Workers aged 18 to 34 recorded the steepest declines, with overall wellbeing falling 18 percentage points, from 67% to 49%, and mental health scores dropping 14 points, from 56% to 42%, according to the RBC Insurance-Ipsos survey of over 1,000 Canadian workers conducted March 3 and March 5, 202. 

Ipsos said this suggests early-career workers may be particularly vulnerable to the combined effects of financial uncertainty and workplace stress

Workers aged 55 to 65, historically the most satisfied age group in the survey, also saw notable declines, with overall wellbeing down eight points to 66% and mental health down 11 points to 63%

The TELUS Health Mental Health Index for Q1 2026 puts Canadian workers aged 20-29 at a score of 54.4

Benefits linked to better outcomes

Employees with access to group benefits reported stronger results across every measure, including 58% for overall wellbeing, 54% for mental health, 54% for physical health and 44% for financial health, compared with lower scores among those without coverage, according to the RBC Insurance-Ipsos survey

They were also more likely, at 64% versus 46%, to say their workplace culture supports their health and wellbeing

Tony Bruin, Head, Group Benefits at RBC Insurance, says the data shows a gap between benefits availability and employees’ understanding of how to use them. 

“Canadians are navigating real pressures of a challenging few years and it’s showing up in how they feel day-to-day,” Bruin says. “What’s encouraging is that employers who lean in and make benefits available and accessible are seeing real results. 

“The opportunity right now isn’t just in offering coverage, it’s in making sure employees actually understand and know how to use them.”

The rising cost of living was named the leading barrier to investing in wellbeing, cited by 51% of respondents overall and 60% of employees with disabilities

Among employed Canadians whose mental health affects their ability to function, 34% said their work was highly disrupted, according to a previous report

How can employers help workers deal with mental health issues?

Here are some ways employers can help workers address their mental health concerns, according to several reports:

Currently, mental fatigue, stress and burnout are costing companies the equivalent of 46 working days per employee each year — and the vast majority of those losses occur while staff remain on the job