Five Years After COVID-19, Employee Mental Health Still Lagging

The COVID-19 pandemic reshaped work, life, and well-being in ways few could have predicted. At the time, workplaces quickly adapted—offering expanded mental health benefits, embracing remote flexibility, and making well-being a business priority.

But five years later, employees aren’t looking back with relief—they’re looking back with a sense of loss.

New research from Modern Health reveals a sobering reality:

• Nearly half of employees say life was easier during the pandemic than it is today.
• 58% of Gen Z employees say their mental health has never fully recovered.
• Only 16% believe their workplace’s mental health support is better now than it was five years ago.

These findings signal a major disconnect between how organizations perceive workplace mental health and how employees actually experience it.

‍“The pandemic forced workplaces to acknowledge mental health in a way they never had before. But instead of building on that momentum, many organizations have pulled back, assuming the crisis has passed. What they’re missing is that for employees, the crisis never truly ended.”
– Dr. Mary Odafe, Clinical Psychologist, Clinical and Scientific Affairs Liaison, Modern Health

Why Employees Are Struggling More Now Than During the Pandemic

At first glance, it may seem counterintuitive—how could employees say life was easier in 2020 than in 2025?

But when we unpack the data, the reasons become clear:

• Flexibility Was the Norm: The pandemic normalized remote and hybrid work, giving employees more control over their schedules and reducing daily stressors like long commutes and rigid office hours.
• Mental Health Was a Visible Priority: Organizations expanded benefits, resources, and open conversations about well-being. Mental health support was encouraged, not questioned.
• There Was a Sense of Collective Understanding: The pandemic created a shared reality—everyone was navigating uncertainty together, fostering greater empathy in workplaces.

But five years later, much of that progress is at risk of backsliding. Instead of feeling supported, employees now feel like they’ve been left to navigate post-pandemic stress on their own.

The Lasting Mental Health Fallout of COVID-19

For many employees—especially Gen Z and younger millennials—the pandemic wasn’t just a disruptive event. It was a defining one.

• 58% of employees say the pandemic exposed critical gaps in workplace mental health support that have yet to be addressed.
• 54% of Gen Z employees say their mental health has never fully recovered from the pandemic.

The long-term mental health impact of COVID-19 has been well documented. According to a WHO report, the pandemic triggered a 25% increase in the prevalence of anxiety and depression worldwide.

And yet, as workplaces attempt to “move on” from COVID-19, many are failing to address the ongoing stress, burnout, and disillusionment employees are still carrying.

• Return-to-office mandates have disrupted the work-life balance many employees gained during the pandemic.
• The “do more with less” mentality has increased workloads and stress.
• Economic and global political uncertainty are adding even more pressure.

For employees, the pandemic may have ended—but the stress hasn’t.

What This Means for Employers

The data is clear: Employees are looking to their workplaces for mental health support not just because of job-related stress but because the world feels increasingly unstable.

Rather than dismissing post-pandemic exhaustion and uncertainty as “personal issues,” employers need to acknowledge their role in supporting a workforce that feels more drained and disillusioned than ever before.

This isn’t just about offering more benefits—it’s about rebuilding trust, psychological safety, and a culture where employees feel valued and supported.

How Forward-Thinking Employers Can Act Now

The pandemic was supposed to be a turning point for workplace mental health. Instead, employees feel as if their well-being has taken a backseat to business priorities.

For forward-thinking organizations, this presents both a challenge and an opportunity. Companies that listen to this reality and take action will not only support their employees but also future-proof their workforce in an era where resilience is everything.

Now is the time to act. Because in 2025, the most successful workplaces won’t be the ones that “move on” from mental health—they’ll be the ones that double down on it.

Here are four places organizations can start:

1. Reassess mental health support: If only 16% of employees feel that mental health benefits have improved in the last five years, it’s time for a reality check. Mental health support should be accessible, preventive, and designed for real-world stressors
2. Prioritize workplace flexibility: Rigid return-to-office policies may be hurting rather than helping. The best workplaces empower employees with autonomy, trust, and flexibility—not just perks.
3. Train managers to lead with empathy: Leaders shape workplace culture. Yet, 60% of managers feel pressured to provide mental health support but don’t feel equipped to do so. Organizations must invest in manager training, coaching, and leadership development to ensure well-being is truly prioritized.
4. Make it a priority to reduce stigma: The pandemic proved that employees want to talk about mental health—but will they feel safe continuing the conversation? Creating an open, stigma-free culture around mental health is the key to building a workforce that thrives.

Modern Health's Report on the State of Workplace Mental Health in 2025

Explore more key findings from Modern Health’s latest research on employee sentiments regarding mental health in the workplace—and discover what forward-thinking employers are doing to support a workforce that’s still reeling from years of stress, burnout, and uncertainty.