American worker engagement and happiness hit new lows in 2025
WASHINGTON, D.C., UNITED STATES — The state of employee engagement and well-being in the United States has reached alarming lows, according to new data from Gallup and the 2025 World Happiness Report.
Gallup’s latest data shows that only 21% of workers are fully engaged, a 10% drop from last year. Manager engagement also dropped to 27% from 11%, with young managers particularly affected.
Meanwhile, the World Happiness Report ranked the U.S. 24th globally in 2025, slipping out of the top 20 for the first time. That places American happiness levels below the UK and just above countries like Poland and Belize.
Why U.S. happiness and engagement levels are falling
Josh Bersin, an industry expert, points out the unique pressures managers face: “I believe managers may be the most directly impacted by AI. Not only are they expected to cut staff and increase output, they’re expected to figure out how to ‘transform’ their teams when many are already in over their heads.”
Additionally, widespread fear is gripping employees. According to LiveCareer, 86% of workers regularly experience fear at work, and 34% are afraid to speak up, primarily due to concerns about AI-driven job displacement and being overlooked.
Adecco’s global study backs this up, revealing that 40% of employees worry about job stability, citing AI as the leading cause.
Cultural and political divides deepen worker stress
Bersin highlights key factors behind the U.S. slump in the 2025 World Happiness Report: “While our GDP has one up, we have dropped significantly in social support (19% of young people have no one they count on), life expectancy (dropping), freedom (down 15%), and perception of corruption (down almost 20%).”
He stresses that “Money, as the saying goes, is not our source of happiness.”
External pressures only add to the strain: ongoing global conflicts, political polarization, trade tensions, and the frantic race among businesses to leverage AI technology create an environment rife with anxiety.
“On a typical day, CNBC reporters compare company performance to giants like Nvidia or Microsoft,” Bersin notes. “This raises pressure on CEOs to reengineer or downsize, trying to become what some call ‘Superworker Companies.'”
How companies can rebuild employee engagement
Bersin argues that organizations must shift away from a purely financial focus and invest more deliberately in people. His recommendations include refocusing on purpose and accountability, investing in employee development, enabling career mobility, ensuring pay fairness, and fostering recognition and appreciation at work.
“Yes, we want people to perform, but as we learned during the pandemic, taking care of people is the best way to take care of the business,” Bersin said.
