Employee Mental Health at a Crossroads: Lyra Health Study Shows Stress on the Rise as Treatment Lags

Nearly 90% of employees globally experienced a mental health challenge last year, citing stress as the top concern—yet fewer than half received care

BURLINGAME, Calif.--(BUSINESS WIRE)--Lyra Health, the leading provider of innovative Workforce Mental Health solutions, today announced employee stress is at a crossroads, making it a top priority for employers—yet mental health care continues to fall short. Despite nearly 89% of employees globally experiencing at least one mental health challenge in the last year, fewer than half received the support they need, according to the latest findings from Lyra Health’s 2025 State of Workforce Mental Health Report.

Employee Stress is on the Rise, For the First Time Since Peak COVID-19 Pandemic

The fifth annual report reveals that employees worldwide are facing increasing levels of stress, for the first time since 2021. In the U.S., 28% of employees cite work-related stress and burnout as a top factor harming their mental health—driven by excessive workloads, inadequate staffing, and a lack of recognition. This trend is reflected on an international scale, as 44% of employees across six countries identified stress as their top mental health challenge over the past year.

“Employers are at a critical moment—mental health has moved from a ‘nice-to-have’ benefit to a non-negotiable workplace priority,” said Alethea Varra, PhD, senior vice president of clinical care at Lyra Health. “Employees are grappling with life-changing moments such as becoming parents, facing an unexpected diagnosis, or navigating personal loss. Unchecked workplace stress is a critical business issue driving unwanted turnover, lower productivity and hindered performance. Now is the time for organizations to take action.”

The study analyzes responses from more than 500 HR and benefits leaders and 7,500 employees across the U.S., Canada, Brazil, France, Germany, and the U.K. to uncover today’s most pressing workforce mental health challenges and opportunities.

2025 State of Workforce Mental Health Report Key Findings:

• Chronic Stress is Harming Employee Performance: 44% of employees worldwide identified stress as their top mental health challenge, with 73% reporting that work-related mental health struggles are negatively impacting their performance at work—a 24% jump from last year.
• Financial Uncertainty is Fueling Stress Beyond the Workplace Financial stress is among the top three mental health challenges for employees across all surveyed countries, with U.S. workers reporting a 27% increase in financial stress compared to 2023. Additionally, 63% of U.S. employees say the current economic environment is negatively impacting their mental health.
• Younger Workers Demand More Mental Health Support—Or They’ll Leave: 60% of U.S. Gen Z employees and 55% of Millennials plan to switch jobs in the next year, with mental health support ranking as their top workplace priority.
• Employers Are Stepping Up, But Gaps Remain: While 62% of U.S. employees believe their employer cares about their mental well-being—up from 59% last year—only 29% say their employer provides resources to support their mental well-being at work.

A “Mental Health Crossroads”: Prioritizing Employee Well-being

Mental health isn’t just an employee issue—it’s a business imperative. Employers that invest in comprehensive mental health support at the individual and organizational levels will gain a competitive edge in attracting and retaining talent, improving productivity, and fostering a more resilient workforce.

"Workforce mental health must be integrated into business strategy. Individual care benefits are essential, but not enough. Mental health must also be woven into how work gets done," said Joe Grasso, PhD, VP of Workforce Transformation at Lyra Health. "That means designing work for better well-being and performance, tackling systemic drivers of burnout like job demands and resourcing, while making mental health literacy a workplace norm for everyone."

The Path Forward: Learn Actionable Solutions for 2025

Dr. Joe Grasso, Lyra’s vice president of workforce transformation, and Dr. Alethea Varra, senior vice president of clinical care, will host a webinar on March 25, 2025, at 11:00 AM PT/2:00 PM ET to discuss the key findings of this year’s survey and practical ways organizations can foster healthier, more resilient teams, leading to improved business outcomes. Register here.

Download the full 2025 State of Workforce Mental Health Report

For more insight into the top workforce mental health challenges and actionable tips to support employees, download the 2025 State of Workforce Mental Health Report here.

About Lyra Health

Lyra Health is the leading provider of Workforce Mental Health benefits, available to nearly 20 million people globally. Lyra is transforming access to life-changing mental health care using AI-powered provider matching, personalized support, and a digital platform to deliver evidence-based support for individuals and teams. Lyra quickly connects members to the largest dedicated global network of evidenced-based mental health providers and well-being tools, to address every mental health need and deliver outstanding positive outcomes that are equitable across diverse racial and ethnic groups. Extensive peer-reviewed published research confirms Lyra’s transformative care model helps people recover twice as fast and a 26% reduction in overall health care claims costs for participants annually. For more information about Lyra Health’s Workforce Mental Health benefits for employers, visit lyrahealth.com.