U.S. employee engagement fell to 29% in the third quarter of 2026, its lowest level since 2011. The decline was particularly steep among remote and hybrid employees, while the engagement advantage previously seen at organizations using AI narrowed for both groups.
Gallup’s latest data show engagement dropped two percentage points from the previous quarter. The share of actively disengaged employees rose from 17% to 18%, while 53% were neither engaged nor actively disengaged.
The quarterly decline represents approximately 3.2 million fewer engaged U.S. workers. Since engagement peaked at 36% in 2020, the number of engaged employees has fallen by an estimated 11 million.
Remote Engagement Falls Five Points
Fully remote employees experienced the steepest quarterly decline, with engagement falling five percentage points. Hybrid workers saw a two-point drop, while engagement fell by about one point among on-site employees and workers whose jobs cannot be performed remotely.
The results also show employees feeling less certain about their responsibilities. The share who strongly agreed they knew what was expected of them fell from 49% in the first half of 2026 to 46% in the third quarter.
Meanwhile, the share who strongly agreed that their supervisor or someone at work cared about them as a person dropped from 40% to 37%.
These measures point to weaker employee experiences alongside the decline in engagement, particularly as remote and hybrid teams depend on clear communication to stay connected to their organizations.
AI Engagement Advantage Shrinks
Earlier in 2026, Gallup found that engagement was six percentage points higher at organizations that had adopted AI. The advantage rose to 15 points at organizations with a clear AI plan and 18 points where managers actively supported AI use. Where frequent AI use, a clear plan and manager support were all present, engagement reached 53%.
By the third quarter, the advantage had narrowed among remote and hybrid employees at AI-integrated organizations. In Q2, fully remote employees at these organizations had a five-point engagement advantage over remote employees elsewhere, while hybrid employees had an eight-point advantage. By Q3, both gaps had fallen to two points.
On-site employees at AI-integrated organizations continued to have an engagement advantage of approximately four to five points.
Clear Expectations Become More Important
The latest figures suggest that AI integration alone does not guarantee stronger engagement, particularly for remote and hybrid teams. Employees need clear guidance on how AI fits into their roles, what responsibilities are changing and how their performance will be assessed.
Managers are central to translating company plans into day-to-day expectations and helping employees understand how new tools affect their work. Gallup also recommends tracking AI use alongside its effects on productivity, efficiency and creative problem-solving.
With U.S. engagement below 30% for the first time in 15 years, the data point to a growing challenge for employers: supporting AI use while keeping employees connected, informed and clear about what their jobs require.
