Employee engagement falls for second year running as managers come under growing pressure 

Employee engagement has fallen for a second consecutive year, reaching its lowest level since 2020, despite a modest improvement in overall wellbeing, according to Gallup’s latest State of the Global Workplace report.  

The findings suggest that while workers may be feeling slightly more positive about life overall, many remain psychologically disconnected from their work.rGlobally, employee engagement fell to 20 per cent in 2025, down from a recent peak of 23 per cent in 2022. Gallup estimates that low engagement now costs the world economy around $10 trillion in lost productivity each year.  

Europe continues to record the lowest employee engagement levels of any region globally, with just 12 per cent of workers classified as engaged and nearly three-quarters not engaged.  

At the same time, the report highlights growing pressure on managers. 

Since 2022, manager engagement has fallen by nine percentage points globally, dropping from 31 per cent to 22 per cent. The largest decline occurred over the past year alone.  

Gallup suggests much of the overall engagement decline can be traced back to managers, who are increasingly reporting similar levels of engagement to the employees they lead.  

The findings raise important questions for employers about job design, management quality and workplace culture. The report will also resonate with many UK organisations that have invested heavily in wellbeing initiatives, yet continue to face challenges around burnout, workload, retention and employee experience. 

Interestingly, the report found only a modest improvement in overall wellbeing, with the proportion of employees classified as “thriving” increasing by one percentage point to 34 per cent. However, levels of stress, sadness and loneliness remain above pre-pandemic norms.  

The data points to a growing distinction between wellbeing and engagement. Employees may feel relatively positive about their lives, but that does not necessarily mean they feel connected to their work. 

Gallup found that employees who enjoy their work, believe it benefits others and feel they have meaningful choice in what they do report both higher wellbeing and stronger engagement.  

For employers, the findings may serve as a reminder that workforce health is shaped not only by access to wellbeing support, but also by the everyday experience of work itself. As organisations focus on productivity and performance, the report suggests the quality of management, work design and employee experience remain critical factors in determining whether people thrive at work, rather than simply outside it.