2026 Workforce Mental Health Trends

November 11, 2025

The ground beneath workforce mental health is shifting fast. After years of progress, pressure is mounting. Health care costs are rising, employee needs are growing more complex, and AI is reshaping how we live and work. In the middle of it all, HR and benefits leaders are being asked to do the impossible: contain costs without compromising care quality or employee well-being.

Workforce mental health is entering its toughest test yet, and the decisions leaders make now will shape the future of employee health, performance, and retention.

To uncover how organizations are meeting this moment, we surveyed more than 500 HR and benefits leaders from U.S.-based global organizations. The findings reveal the most pressing challenges for organizations in 2026, and the bold strategies you can use to meet them head on.

Download the full Lyra Trends Forecast for even more insights and strategies to stay ahead of 2026’s biggest workforce mental health challenges.

Trend #1: Resilience wears thin as mental health leaves and complex needs rise

Over the past several years, many organizations have made meaningful progress, strengthening their mental health strategies, expanding access to care, and recognizing that employee well-being is business-critical. But new data suggests pressure is building once more: rates of complex conditions—like substance use—are climbing, mental health-related leaves are accelerating, and signs of stress are resurfacing.

Traditional benefits may not be built for the scale or intensity of what’s ahead. Without deeper, more proactive support, the risk to workforce resilience will only grow.

of benefits leaders say disability leaves are on the rise

Signs resilience has run out

More benefits leaders report worsening employee mental health:

• Complex conditions (e.g., severe depression or anxiety, suicidality): up 88% YoY
• Substance use: up 26% YoY
• Employee mental health decline: up 50% YoY
• Sick days tied to mental health: up 36% YoY

We’re at the same kind of turning point we saw a decade ago when traditional EAPs gave way to more robust offerings. The standard for mental health at work is shifting again—toward proactive strategies, emphasis on sustainable work design, and truly comprehensive care.

- Joe Grasso, PhD, VP of Workforce Transformation, Lyra Health

Trend #2: AI is the double-edged sword of progress

AI is already reshaping the workplace, but benefits leaders are split on what it means for employee well-being. Over a third say it’s fueling anxiety, while others see potential to ease workloads and improve balance.

What leaders do agree on: AI should enhance mental health care, not replace it. Nearly all emphasize the need for tech that improves access and reduces barriers without sacrificing trust, transparency, or the human connection employees rely on.

Pressure vs. promise

of benefits leaders say AI is driving employee stress and job anxiety

expect AI to improve work-life balance through reduced workload

AI should be treated as a massive change-management initiative. Without clear guidance, employees are left with the mandate to use new tools, but no roadmap. This fuels stress, uncertainty, and anxiety.

- Joe Grasso, PhD, VP of Workforce Transformation, Lyra Health

Trend #3: Caregiving stress is the invisible load breaking your workforce

Caregiving has become a second job for many employees, and it’s taking a toll. From rising burnout to higher absenteeism and health care costs, the impact on workplace performance is real. Nearly half of benefits leaders now rank caregiving and family stress as a top workforce issue—a tenfold jump from just last year.

Yet finding flexible, reliable care remains a challenge. As caregiving demands surge, organizations that close this gap with better support aren’t just easing the burden at home—they’re building a stronger, more loyal workforce.

Most of what the system does for kids’ mental health is reactive—waiting until they struggle. What’s missing is a systematic, proactive approach to help children build resilience from the start.

- Alethea Varra, PhD, Chief Clinical Officer, Lyra Health

Pressures are mounting, but so are the opportunities

The 2026 trends reveal a clear warning: mental health needs are deepening, and traditional benefits aren’t keeping pace. But those that see where workforce mental health is headed—and move first—have an opportunity to build resilient, high-performing teams for the future.