The latest data from Gallup’s 2025 State of the Global Workplace report just came out, and I have to tell you, it isn’t exactly a victory lap. For the second year in a row, Gallup reports employee engagement across the globe has taken a hit. We are now looking at the lowest levels of connection since 2020.
Think about that. After a brief peak a couple of years ago, people are checking out again. And this isn’t just a “HR problem”—it’s an economic one. Low engagement cost the world economy about $10 trillion last year. When people don’t care, productivity drops by nearly 10% of global GDP.
If you’re a leader, here are the three shifts you need to be watching right now.
1. The Manager “Engagement Premium” is Vanishing
Historically, managers have always been more engaged than the people they lead. This is called an “engagement premium.” But that gap is closing fast, and not in a good way.
In some regions, manager engagement dropped by eight points in 2026. A big reason for this seems to be “organizational flattening”—a fancy way of saying companies are cutting mid-level roles and dumping more work on the managers who are left. When a manager has too many people to look after, they can’t lead; they can only survive.
This is especially dangerous because your managers are the ones who determine if your team actually adopts new technology. If a manager doesn’t champion a new tool, the team won’t use it. Period.
2. A Tale of Two Job Markets
While the global outlook on finding a new job actually improved a bit in 2025, that optimism isn’t shared by everyone. If you work on-site, you’re feeling okay. But if you’re a remote worker or in a “knowledge work” role, your optimism is going down… rapidly.
In the U.S. and Canada, job market confidence has fallen 23 points since 2019. We’re living in a “no hire, no fire” climate where people feel stuck. Employees feel trapped in this environment where they don’t work harder and where disconnection is easy.
3. The AI Anxiety is Real
AI is a genuine worry for nearly one in five U.S. workers. They now believe their job will be gone in five years because of AI. In fields like finance, insurance, and tech, that number is one in three.
When people are worried about how technology might change their roles, it’s hard for them to stay locked in on your quarterly goals. Their focus naturally shifts toward navigating their own future, which is a completely human response.
What You Can Do
The bottom line here is that your managers are the primary way your employees experience working in your company. If your managers are burnt out and disengaged, your entire culture is at risk.
You can’t control the global economy or the speed of AI development, but you can improve the “core” of your business ie. your managers. Prioritize how you select and support your managers. Give them the training and the breathing room they need to actually lead. Sometimes that support starts with something as tangible as effective manager recognition to show them their extra effort isn’t going unnoticed.
Some organizations are managing to keep their engagement levels four times higher than the global average. Why is that? They aren’t doing it with magic; they’re doing it by making sure their leaders feel valued and supported. It’s time to treat leadership as the investment it is.