Health
European Workplaces Face Growing Mental Health Crisis Despite Record Corporate Spending
European companies are pouring unprecedented sums into employee well-being, yet mental health indicators across the workforce continue to deteriorate, raising concerns among researchers, unions and public health agencies.
A continent-wide survey released this year by the European Agency for Safety and Health at Work found that nearly half of workers across 30 countries report overwhelming workloads, while a third feel undervalued in their roles. Another 16 percent say they have faced violence or verbal harassment at work, underscoring the strain many employees experience on a daily basis.
The rise in workplace stress comes even as businesses expand support programmes at a rapid pace. In 2023, companies across Europe spent an estimated $19.6 billion (€16.9 billion) on wellness offerings, which now reach nearly a third of European employees. These initiatives include mindfulness sessions, coaching and stress management training. But researchers say such efforts often miss the root causes of worker distress.
A study by Australian researchers earlier this year labelled the situation a “prevailing paradox,” noting that increasing investment has not translated into improved mental health outcomes. Experts argue that many programmes remain surface-level and fail to target the structural pressures embedded in modern employment.
“After the pandemic, we saw a surge in people experiencing mental health issues linked to work, particularly burnout,” said Sonia Nawrocka of the European Trade Union Institute. She noted that psychosocial risks — such as excessive working hours, job insecurity, limited recognition and workplace bullying — continue to rise despite the attention on wellness.
Manal Azzi, a senior occupational safety and health specialist at the International Labour Organization, stressed that meaningful progress requires companies to rethink how they operate. Recruitment, promotion, performance assessments, management styles and communication practices all influence employee well-being, she said.
Research from TELUS Health suggests that managers who successfully support their teams share several traits, including genuine concern for staff, inclusive leadership, clear decision-making and a focus on purpose rather than just tasks.
Some employers are beginning to adopt wider reforms. Trials of the four-day work week in countries such as the United Kingdom, Ireland, Iceland and Germany have shown early promise in reducing burnout and improving workers’ overall health.
Even so, Azzi said many companies remain hesitant to address deeper organisational issues, often due to perceived cost or uncertainty about how to begin. This is where policy may play a greater role, according to Nawrocka. Sweden has rules to tackle workplace intimidation and unhealthy workloads, while France, Belgium and Portugal enforce right-to-disconnect laws outside working hours.
The economic impact is significant. An ETUI study found that stress-related depression and heart conditions cost the European Union more than €100 billion annually, with employers carrying most of the financial burden.
“When anxiety or depression becomes severe, it can be too late,” Azzi warned. “People leave their jobs, and that’s why prevention is essential.”
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