Labor & Employment Law Daily Wrap Up, REPORTS—Financial stress, rising costs weigh on workers and productivity, TELUS Health finds, (Sep 2, 2026)

By WK Editorial Staff

The cost of living is now the top money concern for most U.S. workers, according to a new report that links financial stress to lower productivity, poorer mental health, and growing economic insecurity.

The rising cost of living has become the dominant financial concern for U.S. workers, contributing to anxiety, reduced productivity, and growing uncertainty about long-term financial security, according to a new report from TELUS Health.

The company's second-quarter 2026 TELUS Mental Health Index found that 58 percent of workers identified day-to-day living costs as their top money-related worry, far surpassing concerns about retirement savings, cited by 12 percent, and emergency savings, cited by nine percent. The report also found that nearly two-thirds of workers, 64 percent, experience money-related stress, with one in nine saying they never stop worrying about their finances.

Survival versus planning. The findings point to a workforce increasingly focused on immediate financial survival rather than long-term planning, a trend researchers say is having measurable effects on workplace performance and employee wellbeing.

According to the report, more than one in seven workers said financial strain is negatively affecting their productivity at work. Workers without emergency savings were especially vulnerable, with the study finding they were three times more likely to report declines in productivity. Twenty-three percent of employees reported lacking enough emergency savings to cover basic needs.

"For the large majority of U.S. workers, survival has eclipsed long-term planning," Paula Allen, global leader of research and insights at TELUS Health, said in a statement accompanying the report. Allen noted that 15 percent of workers reported personal financial stress was directly harming their productivity, while three percent said financial strain had caused them to miss work entirely.

Mental health impacts. The report suggests that financial concerns are increasingly intertwined with mental health outcomes. TELUS Health's broader mental health index for U.S. workers registered a score of 70.1, while anxiety and isolation remained among the weakest dimensions measured. The company said workers experiencing financial challenges reported significantly poorer mental health outcomes than their financially secure counterparts.

Retirement knowledge. Researchers also identified a substantial gap in workers' understanding of retirement benefits. Nearly half, 46 percent, said they do not fully understand the retirement plan into which they contribute money each month. At a time when many workers are struggling to balance immediate expenses with future financial goals, that lack of understanding may leave employees ill-equipped to maximize available benefits or prepare for retirement.

The report found growing demand for financial education in the workplace. Nearly half of workers said they would like employers to provide more guidance and resources on financial matters, particularly retirement planning and savings strategies.

Psychological safety. Beyond financial stress, the survey highlighted continuing concerns about psychological safety in the workplace. Thirty percent of workers reported feeling unsafe disclosing a mental health issue to their manager, underscoring ongoing challenges for employers seeking to encourage openness around mental health and employee wellbeing. The report also noted that roughly half of employees are uncomfortable discussing mental health concerns with their supervisors.

TELUS Health said the findings illustrate how financial pressures and workplace mental health are closely linked. The report found that workers experiencing elevated financial stress were substantially more likely to report reduced performance, mental health challenges, and lower overall wellbeing. It also found that 21 percent of workers said their mental health was negatively affecting their job performance, with financially stressed workers nearly three times more likely to experience productivity losses.

The data comes as workers continue to navigate a period marked by persistent concerns over housing, food, transportation, and other essential expenses. While retirement preparedness often receives significant attention from policymakers and employers, the survey suggests many workers are more immediately concerned with paying current bills and keeping pace with everyday costs.

Sandwiched workers. The report also found that a growing number of workers are financially supporting family members. Nearly a quarter, 23 percent, said they are helping aging parents or adult children financially, adding another layer of pressure to household budgets already stretched by higher living costs.

For employers, the findings may carry implications beyond employee wellbeing programs. TELUS Health argued that financial stress has become an operational issue affecting attendance, productivity, and workforce engagement. Employees distracted by financial worries may struggle to focus, while those lacking emergency savings can be more vulnerable to financial shocks that disrupt their work lives.

The company said organizations can help address these challenges by improving communication about available benefits, expanding financial education resources, and fostering workplace cultures where employees feel comfortable discussing mental health concerns. Clear leadership communication and trust in management were identified as important factors in breaking cycles of stress and supporting workforce wellbeing.

The TELUS Mental Health Index is based on ongoing research tracking employee mental health and workplace wellbeing trends. According to TELUS Health, the index measures the mental health status of workers across multiple regions and industries and is designed to help employers identify emerging risks affecting both employee wellbeing and organizational performance.

The TELUS Mental Health Index data was collected through an online survey between June 5 and June 18, 2026, among 5,000 employed adults residing in the United States who were employed within the preceding six months. The sample is balanced to reflect the age, gender, industry, and geographic distribution of the US population.

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