Report: Inflation has started taking a toll on employees’ mental health

Canadian employees are feeling strained by the rising cost of living. Combined with lingering effects of isolation, anxiety and ever-changing work circumstances brought on by the pandemic, regular mental health check-ins are crucial to support staff well-being.

The latest mental health survey conducted by Telus Health has been released. This series of reports points to the factors affecting Canadian workers’ overall health and productivity, providing insight into how to best support well-being and where to place investments. This month’s installment features spotlights on how inflation and employment circumstances are affecting employees.

Data for this report is collected through an online survey of 3,000 people who live in Canada and are currently employed or who were employed within the prior six months.

Overall, despite showing two consecutive months of modest improvement, the report finds that the mental health of Canadian workers continues to be strained. This month, the national mental health score sits at 64.8. Since the launch of the Mental Health Index (MHI), women have had significantly lower mental health scores than men, and in January 2023, the mental health score of women is 62.4 compared to 67.2 for men. The Maritimes showed the lowest mental health scores, while Manitoba scored the highest.

The report found that 32% of Canadians have a high mental health risk, 43% have a moderate mental health risk and 25% have a low mental health risk. Anxiety, isolation, and work productivity continue to be the lowest mental health sub-scores.

Inflation is starting to take a toll on workers’ mental health. Nearly two-thirds (63%) have cut back on discretionary spending, 41% are staying at home more often, and 20% have cut back on expenses related to their health. Those who aren’t feeling financially strained, a reported 19 percent, have the highest mental health scores in the group.

Financial troubles are starting to put pressures on at-home relationships, too, suggesting mental health support at home may be waning. Twenty percent of workers said their relationships have started to suffer as a result of financial pressures. Thirteen percent indicated their marital/partner relationship has declined compared to before the pandemic, and this group has the lowest mental health score (48.1), nearly 17 points below the national average (64.8).

With financial pressures a main pillar of this month’s survey, Telus wanted to factor in how employment circumstances were affecting mental health. Overall, 4% of respondents were unemployed and 8% reported reduced hours or reduced salary. Individuals reporting reduced salary compared to the prior month had the lowest mental health score (50.1), followed by individuals working fewer hours (56.2), individuals not currently employed (62.9) and individuals with no change to salary or hours (65.8). Self-employed respondents had the highest mental health score, while respondents working for companies with 501-1,000 employees had the lowest score.

The newest report showed a change in managers versus non-managers’ levels of mental health scores. Since July 2022, managers and non-managers have reported similar mental health scores, but this month, managers showed a slightly lower mental health score (64.7) than non-managers (65.0).

The latest report also calculated how remote work was affecting mental health. Nearly one-third of respondents reported that they cannot work flexibly, and this group had the lowest mental health score (62.3). More than one-third said they can work flexibly mostly or all the time, and this group had the highest mental health score (69.0).

Of the benefits of remote work, the report showed that respondents appreciated the ability to save on costs such as transportation or meals, being able to attend to personal issues when needed and better work/life balance. Avoiding unappealing workplace culture was also listed as a benefit, but those who reported this as a reason for enjoying remote work also recorded the lowest mental health scores in the group. Managers showed a whopping 70% higher likelihood than non-managers to work more hours remotely than they would in-office. Another advantage to remote work was the ability to combat inflation with a way to earn additional income: Respondents under 40 years of age were two and half times more likely than individuals over 50 years of age to report working an extra job while they were working remotely.

But, there are disadvantages that come with remote work, too. Nearly half (45%) of respondents reported having less social interaction with coworkers, 36% reported feeling more isolated and 35% reported that they felt a blurring of work and home life. The lowest mental health score (55.3) is among 20% of individuals concerned about not having the same support or career advantages as those in the workplace.

Telus Health wanted to look deeper into how isolation was affecting employees Nearly one-third (32%) of respondents reported that they avoid being with or interacting with others, and respondents under 40 years old were nearly 70% more likely to avoid being with or interacting with others than people aged 50 and older. More than three in five reported that their avoidance started or worsened since the pandemic began, and this group had the lowest mental health score (48.4) – more than 16 points below the national average (64.8).

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