Low engagement costs global economy more than $10 trillion in lost productivity
Global employee engagement fell to 20% in 2025, down from a peak of 23% in 2022, marking the first time Gallup has recorded two consecutive years of decline in global engagement. Despite long-term gains, including an eight-point increase since 2009, the recent downturn signals growing challenges for organizations worldwide, according to Gallup’s latest State of the Global Workplace report.
Each percentage point of engagement represents approximately 21 million employees globally. While the long-term trend shows improvement in the quality of work for millions, recent declines are cause for concern.
Low engagement continues to carry a significant economic cost. In 2024, disengagement resulted in an estimated $10 trillion in lost productivity globally — equivalent to 9% of global GDP.
The 2025 global decline in engagement was geographically widespread, with no region experiencing an increase. South Asia (-5 points) saw the largest drop.
Managers Continue to Drive Declines in Global Engagement
The recent drop in global engagement is largely driven by declining manager engagement. Since 2022, manager engagement has fallen by nine percentage points, including a five-point drop in 2025 alone (from 27% to 22%). In contrast, engagement among individual contributors has remained largely stable.
Managers have historically been more engaged than the employees they lead, but that gap has narrowed significantly. Today, managers are no more engaged than individual contributors, signaling a critical shift in workplace dynamics.
Regional data underscores the trend. In South Asia — driven largely by India — manager engagement declined by eight points in 2025, alongside a reduction in the number of managers, suggesting organizational flattening may be contributing to lower engagement.
Managers also play a pivotal role in emerging workplace trends, including artificial intelligence adoption. Gallup research in the U.S. finds that manager-led initiatives and system integration are key drivers of frequent AI use within organizations.
“This report establishes a global baseline for management effectiveness in the AI era,” says Gallup CEO Jon Clifton, “Businesses are investing heavily in AI, but the results are not showing up in the bottom line. Gallup’s data points to an answer the corporate world has largely ignored: the manager.”
Global Job Market Perceptions Hold Steady Amid Regional Shifts
About half of employees (52%) say it is a “good time” to find a job, up one percentage point in 2025. Job market optimism rose among fully on-site workers but declined among remote and remote-capable employees, likely reflecting reduced availability of remote opportunities.
Regionally, Australia/New Zealand (-12 points) and the United States and Canada (-10 points) experienced the sharpest declines in job market optimism.
While Australia/New Zealand remains above the global average, the U.S. and Canada now rank among the least optimistic regions globally.
Employee Wellbeing Improves Slightly but Remains Under Pressure
Global employee wellbeing improved for the first time in three years, with 34% of employees classified as thriving, up one percentage point from 2024. Gains were led by increases in Latin America and the Caribbean and Europe.
However, daily negative emotions — including stress, anger and sadness — remain elevated compared with pre-pandemic levels, suggesting a lasting shift in how employees experience work and life.
Leaders report higher overall wellbeing and engagement than individual contributors, but they are significantly more likely to experience daily stress, anger, sadness and loneliness. Despite these challenges, engagement plays a critical protective role: Engaged managers report lower levels of negative emotions and are substantially more likely to be thriving than their less engaged peers.
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