Unhappy Workers May Reduce Global GDP by as Much as 9%

The global economy could be significantly impacted by unhappy workers, with a potential reduction in GDP by as much as 9%, according to a recent report by Gallup. The “State of the Global Workplace” report highlights how negative emotions and a lack of well-being among employees can harm worker engagement and, consequently, the broader economy.

Gallup’s analysis, which draws from its annual World Poll, estimates that low employee engagement is costing the global economy a staggering $8.9 trillion, equivalent to 9% of global GDP. The World Poll surveyed 128,278 employees in more than 140 countries over the past year, revealing alarming trends in worker satisfaction and emotional well-being.

Emotional Toll on Workers

The findings paint a troubling picture of the current state of the global workforce. Approximately 20% of workers globally reported feeling lonely, angry, or sad on a daily basis, while 41% of workers said they experience stress regularly. These negative emotions are not confined to a particular region or demographic; they are pervasive across various segments of the workforce. However, certain groups, such as younger workers, those working remotely full-time, and those who are disengaged at work, reported higher levels of loneliness.

Younger workers, for instance, were more likely to experience loneliness, with 22% reporting this feeling. Among employees working remotely full-time, 25% felt lonely, and for those who were most disengaged at their jobs, the percentage rose to 31%. While work itself might not be the sole cause of these negative emotions, the role of employers in either alleviating or exacerbating these feelings is significant.

The Role of Work in Employee Well-Being

The report underscores the dual role work can play in a person’s life. On the positive side, when employees find meaning in their work and develop meaningful relationships at their workplace, they experience high levels of daily enjoyment and lower levels of negative emotions. Engaged employees—those who are highly involved in and enthusiastic about their work—are more likely to thrive in life overall. Gallup found that half of the engaged employees reported thriving in life, highlighting the importance of meaningful work in overall well-being.

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Conversely, disengagement at work can have a detrimental impact on an individual’s well-being, sometimes even more than unemployment. Disengaged workers often experience elevated levels of stress, worry, and other negative emotions. The report notes that for many well-being measures, such as stress, anger, worry, and loneliness, being actively disengaged at work can be as harmful as, or even worse than, being without a job. This underscores the critical need for employers to foster environments where employees feel engaged and supported.

The Importance of Engaged Managers

One of the key findings of Gallup’s report is the critical role that managers play in employee engagement. The poll revealed that only 23% of employees were engaged at work last year, a figure unchanged from the previous year. However, the percentage of employees who were not engaged rose by 3 percentage points to 62%. These disengaged employees are characterized as being psychologically unattached to their work and company, often putting in time without energy or passion.

Engagement levels are notably higher in organizations that follow best practices, particularly those where a significant proportion of managers are engaged. In these organizations, three-fourths of managers, on average, are engaged, which in turn positively influences non-managerial employees. When managers are engaged, employees are more likely to be engaged as well. The report suggests that high-engagement business units tend to see higher employee well-being, productivity, profitability, and sales compared to low-engagement teams.

The emphasis on well-being, both at work and in life, and prioritizing the hiring and development of engaged managers, are identified as best practices in fostering a productive and positive work environment.

Regional Variations in Engagement and Well-Being

The Gallup report also highlights regional differences in employee engagement and well-being. The United States and Canada emerged as regions with the highest percentage of engaged employees (33%) and the third-highest percentage of thriving employees (53%). However, these regions also reported high levels of daily stress, with 49% of employees in the US and Canada experiencing stress daily, second only to the Middle East and North Africa (52%).

On the other hand, Europe had the lowest level of employee engagement at just 13%, and South Asia reported the lowest percentage of employees thriving overall, at 13%. Interestingly, countries in post-Soviet Eurasia had the lowest levels of daily stress, with only 19% of employees reporting such feelings.

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The Gallup report makes it clear that employee engagement is not just a matter of individual well-being but a critical factor in the overall health of the global economy. With low engagement levels costing the global economy trillions of dollars, there is an urgent need for employers to address the factors contributing to employee dissatisfaction. By fostering environments where employees feel engaged and valued, organizations can improve both worker well-being and economic productivity, ultimately benefiting the global economy. As the world continues to navigate the complexities of the modern workplace, the importance of employee engagement and well-being cannot be overstated.