Financial stress hits record levels, worsening workers' mental health across Canada

TELUS Health has released its latest TELUS Mental Health Index today, revealing a significant decline in the mental health of Canadian workers.  

The report highlights growing financial stress as a key factor impacting productivity, with 23 percent of workers affected.   

Paula Allen, global leader, Research and Insights at TELUS Health, noted that this is “the most significant decline in TELUS Mental Health Index scores since April 2020,” with financial wellbeing showing the most notable downturn.  

She added that every aspect of mental health measured declined, particularly in the proportion of individuals with emergency savings. Allen emphasized that with the upcoming season of increased spending and social expectations, many are feeling the strain of current economic pressures.   

The report revealed that 37 percent of workers are now at high mental health risk, reaching a new peak nearly 4 percent higher than the annual average over the past four years.  

National mental health scores dropped to 61.3, reflecting a 3.1-point decline and almost two points below April 2020 levels.   

Regional and demographic insights:   

• Saskatchewan experienced the largest provincial drop in mental health scores, declining by 8.1 points. 

• Younger workers, parents, and those without emergency savings report greater stress and anxiety related to finances. 

• Financial risk mental health sub-scores saw the most significant one-month decline at 6.8 points. 

The TELUS Mental Health Index found 40 percent of workers frequently feel anxious about their financial situation. Rising living costs are the top concern for 48 percent, while 25 percent cite debt as their main worry.  

Fewer than half of workers (47 percent) report being in a good financial position, marking a 10 percent decrease from last year.   

According to Allen, employers can play a key role by promoting Employee Assistance Programs (EAPs), which offer mental health support, financial consultation, legal advice, and family care assistance. 

“Employers can make a meaningful difference by promoting resources like [EAPs],” said Allen.  

TELUS Health research shows that workers unaware of their company’s EAP or reporting a lack of access score at least three points lower on the mental health index compared to those with EAP support. 

  Matthew Chow, chief mental health officer at TELUS Health, emphasized the challenges workers face during the holidays.  

“Many struggle silently, feeling they shouldn't voice their concerns during what's supposed to be a joyful period. It's crucial to remember that these feelings are common – you're not alone. EAPs offer confidential, no-cost support for those who need it.”   

Chow provided three tips for managing financial wellbeing over the holidays:   

• Set a budget and track spending: Create clear spending limits for gifts, entertainment, and festivities. 

• Discuss finances openly: Have honest conversations with family and friends to set realistic expectations. 

• Use available resources: Access EAPs for expert advice on budgeting and debt management. 

The report also underscores the importance of community and human connection, especially in combating anxiety and isolation.  

TELUS Health encourages checking in with others and fostering connections, which can improve mental wellbeing.