Workplace mental health is emerging as a critical factor in occupational safety, with new data from TELUS Health’s Mental Health Index and the inaugural Mental Health Barometer revealing a complex relationship between psychological wellbeing and on-the-job risks. As organizations navigate economic uncertainty, rapid technological change, and shifting employee expectations, health and safety leaders are urged to prioritize mental health as a core component of their safety strategies.
Paula Allen, global leader of research and insights at TELUS Health, says the Barometer is not just a snapshot, but a “summary of the prior year’s findings,” providing a story-driven overview of mental health trends across Canada, the US, Europe, Australia, New Zealand, and Singapore. “There’s just an increasing knowledge that we have around workplace mental health with all the different mental health indexes together,” Allen explains, noting the Barometer consolidates insights from multiple reports to offer actionable recommendations for organizations.
Mental health and safety: A direct connection
The data paints a sobering picture: one-third of Canadian workers feel anxious, and 30 percent feel isolated and lack emergency savings to cover basic needs. Financial stress emerges as the leading source of personal stress for the second consecutive period, with nearly three-quarters of workers lacking confidence in their financial future. More than 25 percent report depression that adversely impacts productivity, and younger workers are especially vulnerable to self-stigma and fear that disclosing mental health issues could limit their career options.
Allen draws a direct line between mental health and workplace safety. “When people are anxious in particular and depressed as well… it uses up a portion of your brain that prevents you from actually paying attention to what’s in front of you. So the likelihood of accidents because of unintentional distraction or sub-focus is much higher when people have that kind of mental strain,” she says. The Mental Health Index finds that labourers, who often face greater physical demands and economic uncertainty, now report lower mental health scores than both service and office workers—a reversal of previous trends. “We know that pain and physical demand impacts your mental health and impacts your sense of anxiety,” Allen adds, pointing to construction and project-based work as sectors where these stresses converge.
Financial stress is not confined to any one demographic or industry. “Across the board, and quite interestingly, across different age demographics as well… we are seeing a significant portion of those over 40 who don’t have any emergency savings. It’s not just younger [workers], and again, it cuts across industries,” Allen notes.
Building trust and taking action
The Barometer’s findings are clear: 40 percent of workers face constant stress, and 70 percent report a recent decline in productivity. Nearly half (49 percent) cite financial stress as their primary personal concern. Yet, the data also points to solutions. Workers in high-trust organizations report feeling more engaged, less stressed, and less burnt out. Notably, 33 percent of employees would prefer better support for their wellbeing over a 10 percent salary increase.
Allen identifies two key areas for health and safety leaders to address. First, organizations must equip employees with practical coping skills and promote access to employee assistance programs (EAPs). “There’s some very practical help in addition to the traditional counseling,” she says, highlighting EAPs that offer support for financial strain, family dynamics, and substance use. Second, managers must be trained to support their teams with empathy and clear communication. “Communicating builds trust, right? Because then you know what’s on people’s minds, you know what they’re thinking,” Allen explains. Even brief daily check-ins can foster a sense of connection and psychological safety.
Trust, Allen argues, is foundational. “If you are in a situation or with people that you don’t trust, think about where your anxiety is. It’s pretty high. You’re always being vigilant. You feel pretty isolated. You can’t connect to those people. So all stress is going to feel harder when you feel isolated,” she says.
Younger workers face unique challenges, including heightened social sensitivity and exposure to comparison culture. Allen urges leaders to be attentive to the context these employees are living in, noting that “each cohort of younger individuals has higher mental health risks.”
As workplaces brace for further disruption—whether from AI, automation, or economic shifts—Allen’s call to action is clear: “We have to pay attention to people’s mental health because if we don’t have that kind of supportive environment as well as support to individuals, then we are going to see all of what we hope in terms of innovation, creativity, and resilience just go out the window.”
For health and safety leaders, the message is unmistakable: fostering trust and supporting mental health are not just moral imperatives—they are essential to workplace safety and organizational success.
Courtesy Canadian Occupational Safety