Employee wellbeing down in Canada, many cite cost of living: poll

Employee wellbeing drops as mental, physical and financial health declines.

A new survey says Canadian employee’s wellbeing has fallen in the past year.

The poll by RBC Insurance found mental, physical and financial health all dropped from those polled year-over-year. The study also showed that Canadians’ overall level of wellbeing rated as “excellent” or “good” dropped by nine percentage points from 65 per cent to 56 per cent in 2026.

“Canadians are navigating real pressures of a challenging few years and it’s showing up in how they feel day-to-day,” said Tony Bruin, the head of group benefits for RBC Insurance in a news release.

“What’s encouraging is that employers who lean in and make benefits available and accessible are seeing real results. The opportunity right now isn’t just in offering coverage, it’s in making sure employees actually understand and know how to use them.”

The study surveyed 1,001 Canadian respondents between March 3 and 5. It showed a downward trend in three major categories of wellbeing:

• Mental health dropped seven points to 52 per cent
• Physical health dropped six points to 53 per cent
• Financial health dropped two points to 42 per cent

Bruin told CTV News that the most significant decrease was found in young professionals aged 18 to 34, saying they’ve been “the hardest hit.”

“Their overall wellbeing went down 18 per cent year-over-year. And specifically, their mental health is down 14 points year-over-year to 42 per cent,” he added. “I think they are experiencing the true financial crunch, right. So, they definitely have a lot more stressors associated with them.”

Over half of respondents, 51 per cent, pointed to the cost of living as a leading obstacle.

“They are dealing with the affordability of housing, or they may not have the same stability as older workers in their job security, and they may not also have the same supports that older workers have in their financial security,” said Bruin.

He said the numbers are concerning, but points to a silver lining.

“Group benefits are demonstrating that they’re offering a little bit of support to those Canadians… So, we must really use group benefits to help support plan members in that journey of trying to return to a healthier lifestyle,” he said.

Bruin said there are many benefit plans that can elevate financial stress and that it is important for employers to explain this to employees.

“It’s important for employers to really have a conversation with their employees about what’s really important to them, what are the barriers that they’re experiencing or the challenges that they’re experiencing,” he said.

“The health-care spending accounts or wellness spending accounts, they have set budgets associated with them, and that offers a tremendous amount of flexibility. So, if I’m an older worker, I might focus on investing in solutions for retirement associated with those accounts. But if I’m a younger person, I might want to focus on gym memberships or something like that so that I can address the needs that I want to change or, the behaviors that I wish to improve my health.”

He added that those employees with a comprehensive benefit plan are happier than those without.

“Meeting that diverse population as the survey indicated, the overall mental, physical and financial wellbeing of employees that have group benefits is better than those without,” said Bruin. “64 per cent of employees with group benefits believe their workplace culture supports their health and wellbeing, versus that 46 per cent that don’t have it.”