In October 2024, the mental health of Canadian workers reached a low not seen since the creation of theTELUS Mental Health Index in April 2020, at the dawn of the COVID-19 pandemic (then an index of LifeWorksconsulting firm acquired by TELUS Corporation in June 2022).
The October 2024 Index shows an overall mental health score of 61.3, 1.7 points lower than April 2020, according to data revealed in the report TELUS Mental Health Index: Special Report on Financial Well-Beingpublished in December by TELUS Health.
Based on responses from 3,000 workers surveyed between October 15 and 28, 2024, the Index shows that October’s overall mental health score plunged 3.1 points from September’s score of 64.4.
This score remains in the zone described as “precarious mental health” by TELUS Health, i.e. the range between 50 and 79 points. More than four years after the launch of the Mental Health Index, the proportion of workers at high risk of mental health problems has increased by 3%, point out the authors of the report.
All secondary scores drop
The TELUS Health report also reveals that all secondary mental health scores decreased significantly in October, compared to September.
Anxiety and isolation remain the lowest secondary mental health scores for almost three years.
The secondary score relating to financial risk saw the largest decline in October, down 6.8 points compared to the previous month.
Cost of living pressures
According to the TELUS Health report, cost of living pressures affect the financial well-being of 60% percent of workers. It says that the mental health score of this group is almost eight points lower than the national average. It is almost 24 points lower than that of workers who manage to preserve their financial well-being in the face of the cost of living.
Financial stress impacts productivity: 23% of workers say their financial situation over the past three months has had a negative impact on their productivity at work, according to the report. The mental health score for this group is more than 15 points lower than the national average.
In a press release accompanying the report, Paula Allenglobal director, research and customer insight, TELUS Health, is concerned that financial results will see the most notable drop.
However, the economic news seems good. There Bank of Canada repeatedly cut its key rate, dropping it from 5% to 3.25% between April 10 and December 11, 2024. Inflation has now been around 2% since August 2024. It stood at 1.9 % in November, after starting the year at 2.9%. “We expect it to remain around the 2% target on average for the next two years,” the central bank governor said. Tiff Macklemduring his preliminary statement to the rate cut.
Despite the slowdown in inflation, grocery prices increased by 19.6% and housing prices by 18.9%, compared to November 2021, maintains Statistics Canada In The Daily from December 17, 2024.
Paula Allen believes the arrival of the holiday season also plays a role in the collapse in mental health scores in October. “At this time of year when spending and social expectations are increasing, many are feeling the current economic pressures,” she says.
Financial education sessions offered by EAPs are particularly useful during these difficult times – Paula Allen
Ms. Allen believes that people without an emergency fund are more likely to perceive money as a source of stress and anxiety, particularly young people and parents. The report classifies workers under 40 as young. “Employers can go a long way in turning the tide by promoting resources such as employee assistance programs (EAPs). The financial education sessions offered by EAPs are particularly useful in these difficult times,” she adds.
Three tips from a doctor
Head of mental health services at TELUS Health, the Dr Matthew Chow for his part, evokes a time of year which “often brings its share of additional challenges and susceptibilities that can harm our resilience”.
Many face difficulties in silence – Matthew Chow
Dr. Chow advises not to wall yourself in silence. “Many face difficulties in silence, feeling that they should not voice their concerns during a time that is supposed to be joyful. It’s important to remember that these feelings are common: you are not alone. EAPs offer confidential and free support to people who need it,” he recalls.
Matthew Chow gives three tips for maintaining your financial health during the holidays:
- Set a holiday budget and stick to it:
He suggests setting spending limits on gifts, entertainment and festivities, and tracking them.
- Talk openly about finances:
It encourages having frank conversations with family and friends, to establish realistic expectations.
- Use the resources at your disposal:
It encourages plan participants to take advantage of the employee assistance program to obtain financial advice which will help them, among other things, establish a budget and manage their debts.
Debt management will be crucial for many. In its report, TELUS Health highlighted that two-thirds of workers have debt. The report states that those with an annual household income of less than $100,000 and those without an emergency fund are more likely to have significant debt. We can read that mortgage loans, personal loans and auto loans are the main sources of debt for Canadian workers.
