A new Gallup report has revealed that the global workforce is experiencing a significant drop in employee engagement — with only 21% of workers now considered “engaged,” matching levels last seen during the height of the COVID-19 pandemic. The findings, published in Gallup’s State of the Global Workplace 2025 report, suggest a widening crisis in workplace productivity and well-being.
The report estimates that this disengagement cost the global economy $438 billion in lost productivity last year alone.
At the core of this downturn is a striking collapse in manager engagement. Gallup found that engagement among managers fell from 30% to 27%, with female and younger managers experiencing the steepest declines. This drop is particularly concerning given Gallup’s conclusion that 70% of a team’s engagement is influenced directly by its manager.
Beyond the workplace, the report shows a broader erosion of life satisfaction among workers. Only 33% of employees globally describe themselves as “thriving,” while daily reports of stress, sadness, and loneliness continue to rise. Remote and hybrid workers, in particular, are feeling the emotional strain, with nearly half reporting high levels of daily stress.
Equally alarming: 50% of the global workforce is actively or passively seeking a new job. Among workers under 35, that number rises to 58%, suggesting that a generational shift in workforce expectations may soon accelerate attrition rates across industries.
Despite the grim statistics, Gallup identifies a clear opportunity. According to the report, better management training, targeted coaching, and sustained investment in manager well-being could unlock up to $9.6 trillion in global productivity — the equivalent of 9% of global GDP.
“Don’t wait for AI to fix work,” says Daniel Lamadrid, Associate Publisher at Allwork.Space. “This is the new normal, and it’s ours to redesign — starting with managers.”
