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Global Employee Engagement Falls to Lowest Level Since 2020

According to Gallup's latest report on global workplace engagement, employee commitment has plunged to 20% as of 2025, which is a significant drop from 23% in 2022. This unforeseen decline comes as a surprise, as it marks the first occurrence of two consecutive years of decreasing engagement levels since Gallup started tracking this data in 2000. Despite a long-term trend of improvement, the latest numbers highlight escalating challenges for organizations worldwide and reflect a concerning reality for workers and employers alike.

The report elaborates that each percentage point represents approximately 21 million employees globally, which amplifies the staggering implications of this engagement drop. In fact, the disengagement of employees has already cost the global economy an estimated $10 trillion in productivity losses in 2024, accounting for about 9% of global GDP. This statistic underscores not just the human impact of engagement but the significant financial burdens that come along with it.

Interestingly, the decline in employee engagement was not isolated to specific regions—every geographic area experienced a dip, with South Asia experiencing the steepest decline of 5 percentage points. The evolving trends indicate that engagement levels among managers are key contributors to the overall decline in employee commitment across organizations.

The Crucial Role of Managers

The drop in employee engagement rate is chiefly attributed to diminishing commitment levels among managers. Since 2022, managerial engagement has plummeted by nine percentage points, with five points of that drop occurring within just the year 2025 (from 27% to 22%). This shift has stark implications—it suggests that managers, historically more engaged than their direct reports, are now falling short of inspiring their teams, thus contributing to an unhealthier work environment.

Increasingly, as per Gallup's research, the managerial role is intertwined with rising workplace trends, particularly concerning the integration of technology like artificial intelligence (AI). A study indicated that effective leadership and the harmonization of systems are fundamental for the successful adoption of AI. Jon Clifton, Gallup's CEO, highlighted that while organizations invest heavily in AI, the expected benefits remain absent, underscoring a crucial oversight in management practices.

Stabilized but Cautious Global Labor Market

Despite falling engagement, perceptions of the global job market seem mildly stable, with 52% of employees indicating it’s a ‘good time’ to find new work—up by one percentage point from the previous year. Optimism has risen slightly among on-site workers, although there was a notable decrease among remote workers which could be aligned with limited job opportunities in the remote sector.

Australia/New Zealand and the United States/Canada reflected the largest drops in job optimism, with respective declines of 12 and 10 points. Such shifts reiterate the necessity for organizations to foster a culture of engagement and create opportunities that resonate with both in-person and remote employees.

Employee Wellbeing: A Mixed Bag

On the flip side, employee wellbeing appears to be on a slight upswing for the first time in three years—34% of workers qualify as thriving, up a percentage point from 2024. This improvement seems predominantly driven by positive changes in Latin America, the Caribbean, and Europe. However, negative emotions, including stress and sadness, remain considerably elevated compared to pre-pandemic levels, reflecting a persistent change in employee experiences at work and life.

While leaders report feeling more engaged and well than individual contributors, they also face heightened levels of everyday stress and emotional fatigue. Notably, engaged managers are less likely to experience negative feelings and are more inclined to thrive within their roles.

Conclusion

Gallup's findings shed light on the complex interplay between management practices, employee engagement, and productivity. It indicates a pressing need for leaders to refocus their strategies and cultivate a committed workforce, particularly as organizations navigate the evolving landscape of modern work influenced by technology advancements.

About Gallup: Gallup offers insights and guidance to help leaders and organizations tackle their most urgent challenges. With over 80 years of global experience, they possess unparalleled understanding of employee, customer, and citizen attitudes and behaviors.