Modern Health Report Highlights Escalating U.S. Workforce Mental Health Crisis

San Francisco — A new report from Modern Health reveals a U.S. workforce facing unprecedented levels of stress, driven by artificial intelligence (AI) anxiety, political uncertainty, and declining trust in employer support systems.

The study, based on a survey of 1,000 full-time employees at organizations with more than 250 employees, points to a growing disconnect between workplace expectations and employee well-being. Despite widespread availability of mental health benefits, confidence in employer support continues to decline, with only one-third of employees strongly agreeing that their organization values their mental health—down significantly from the previous year.

“We’re seeing a convergence of stressors—AI disruption, economic pressure, and global uncertainty—creating unsustainable strain across the workforce,” said Alison Borland.

Trust Erosion and Workplace Stigma

The report finds that workplace stigma remains a major barrier to accessing support. A majority of employees report feeling more comfortable discussing mental health concerns with digital tools than with HR, while many continue to conceal their struggles due to fear of judgment. Concerns are particularly pronounced among senior managers, who report higher levels of stigma and reluctance to use mental health benefits.

At the same time, perceptions that employers prioritize productivity over employee well-being are increasing, further eroding trust and engagement.

AI-Driven Anxiety and Rising Expectations

Artificial intelligence is emerging as a key source of workplace stress. A significant proportion of employees expect AI to drive job displacement in the near future, with nearly half expressing personal concern about losing their roles.

Beyond job security, AI is also reshaping performance expectations. Many employees report increased pressure to deliver higher output, contributing to elevated stress levels—particularly among senior leaders tasked with navigating transformation initiatives.

External Pressures Spill Into the Workplace

The report also highlights the growing impact of external factors on employee well-being. Political tensions and global instability are increasingly affecting workplace mental health, with employees looking to organizational leaders for guidance and support.

However, many leaders report feeling ill-equipped to address sensitive societal and political issues, underscoring a capability gap at the management level.

Concerning Coping Mechanisms Emerge

As stress intensifies, employees are increasingly turning to substance use as a coping mechanism. A majority report using alcohol, cannabis, or other substances to manage work-related stress, with a notable portion indicating usage during working hours.

“When employees rely on substances to cope with stress, it signals a critical gap in accessible and effective support systems,” said Dr. Jessica Watrous.

Burnout and Managerial Strain on the Rise

The cumulative impact of these pressures is evident in rising burnout levels, with a large majority of employees reporting reduced productivity and increased emotional distress. Many also feel compelled to continue working despite mental health challenges.

Managers, while often appearing resilient, are experiencing significant underlying strain. The report indicates rising rates of mental health diagnoses among senior leaders, alongside increasing difficulty in managing teams and identifying signs of burnout.

Implications for Employers

The findings underscore an urgent need for organizations to reassess their approach to employee well-being. As workforce expectations evolve and external pressures intensify, employers must prioritize building trust, reducing stigma, and equipping leaders with the tools to support mental health effectively.

Failure to address these challenges could have far-reaching implications for productivity, retention, and long-term organizational performance.