3 factors dragging down employee wellbeing—and how HR can turn things around

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According to a new report, workplaces nationwide are on unstable legs when it comes to employee wellbeing. As a result, productivity is at risk.

The Summer 2025 State of the Workforce Report from meQuilibrium uncovered that a triple threat of pessimism, uncertainty and disconnect are reaching critical mass and affecting both employee and organization wellness. The comprehensive analysis of nearly 5,500 employed U.S. adults revealed “both significant challenges and promising pathways for organizational resilience,” researchers write.

Pessimism, uncertainty and the effect on employee wellbeing

What’s driving employee pessimism? Sixty-seven percent of employees say they feel worse when they consider the state of the country, while nearly half say their finances are hindering their outlook and about one-third attribute pessimism to their work situation. And they don’t anticipate things getting much better: Fifty-two percent expect the state of the country to worsen, about 27% envision their financial situation declining and 24% expect their work satisfaction will get worse.

Brad Smith, meQ’s chief science officer, says the connection between pessimism and performance is clear: Employees with work-related pessimism, researchers found, experience a drop in productivity of more than 60%—and are at a 128% greater risk for depression.

Uncertainty—exploding across workplaces as AI enters

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