Anxiety and isolation are the biggest mental health challenges for workers across Australia and New Zealand, with young workers (under 40) more than twice as likely to be diagnosed with mental health issues at work.

In Australia, sectors like Public Administration, Wholesale Trade, and Technology report the highest mental health scores. The mental health of workers has hit a four-year low, costing businesses up to 69 workdays of productivity annually per employee, said a TELUS Health report.

Further, workers without emergency savings are at higher risk of poor mental health, leading to significant productivity loss, costing workers valuable workdays, according to the latest TELUS Mental Health Index.

Psychological distress on the rise

The National Report Card 2023 and other recent national studies have highlighted worrying trends. Between 2020 and 2022, 21.5% of Australians aged 16–85 experienced a mental disorder—up from 19.5% in 2007.

Young people, especially young women, are facing a mental health crisis. The rate of mental disorders among 16–24-year-olds jumped from 25.8% in 2007 to a staggering 38.8% in 2020–2022. For young women, it rose sharply from 28.5% to 45.5%, and for young men, from 23.2% to 32.4% over the same period.

Additionally, the latest National Health Survey reveals a concerning rise in psychological distress among adults, increasing from 10.8% in 2011 to 14.4% in 2022—a clear signal that Australia’s mental health system must evolve to meet growing needs. The latest General Society Survey shows that life satisfaction among people with a mental health condition has slightly reduced over time from 6.6 on a scale of 1 to 10 in 2014 to 5.8 in 2020. 

Data paints a stark reality: Australians living with a mental or behavioural condition are more likely to experience loneliness, discrimination, lower life satisfaction, and even homelessness at some point in their lives. They're also less likely to be employed—though that employment gap has slightly narrowed since 2017-18.

Without an appropriate focus on improving the determinants of mental health, including financial security and loneliness, Australia’s mental health has the potential to decline even further, the survey report said.  

Reducing mental health stigma at work

Despite moves to more openly address mental health in the professional arena, stigma remains a big challenge.  But there's a growing shift toward actively creating mentally healthy workplaces, thanks to increasing awareness and policy support. Here's a breakdown of how mental health stigma can be reduced in workplaces.

Leaders should openly discuss mental health: When managers, team leads and executives discuss mental health, it becomes easier for employees to open up and share their experiences. At PwC Australia, senior leaders have shared their experiences about mental health challenges during internal events. This helped normalise conversations and showed that struggling with mental health isn't a weakness—it’s human.

Start Mental Health First Aid training (MHFA) for employees: The equivalent of physical first aid courses, MHFA training was developed and pioneered in Australia and has since spread to workplaces, schools, and communities around the world. The training teaches people how to identify, understand, and respond to signs of mental health problems in others. 

Many companies train thousands of employees in MHFA, equipping them to support colleagues in distress. Data on the initiative shows that it's led to more early interventions and a noticeable reduction in stigma, as people felt more confident talking about mental health.

Leverage national campaigns to start conversations: The awareness and publicity around existing national mental health campaigns is one of the most effective entry points for offices to start conversations, reduce stigma, and show support—especially when the message is reinforced through events, internal communications, and leader participation. Many companies run annual events like RUOK (Are you ok?). Workplaces use it to host morning teas or team events, share personal stories or guest speakers and train staff to ask deep follow-up questions. These events foster genuine dialogue and remind employees to look out for each other throughout the year. 

Establish mental health champions in offices: This means identifying and training certain employees to act as go-to people who promote mental wellbeing, reduce stigma, and support a mentally healthy culture. They’re not therapists or counsellors—they're regular employees who are passionate about mental health, and are trained to raise awareness, start conversations, support their peers, connect people to professional help when needed, etc. It helps reduce stigma as employees can speak to someone who "gets it" without fear of judgment.

Include mental health in official HR and safety frameworks: It means making mental health and well-being a formal, recognised part of workplace policies, just like physical health and safety. It ensures that supporting mental health isn't just a "nice to do thing"—it's built into how the organisation operates. It means the Human Resources and Workplace Health and Safety functions of a company acknowledge mental health risks, have policies to prevent and manage them, offer support for employees experiencing mental health issues and train leaders to respond appropriately. Many companies now formally assess stress, burnout risk, and workload in their WHS planning—putting mental health on equal footing with physical safety.

Recommend anonymous feedback and listening tools: Using anonymous feedback and listening tools is a powerful way to identify and reduce mental health risks in offices—especially where employees might not feel comfortable raising out loud. These tools give staff a safe, judgment-free space to share concerns, stressors, or suggestions without fear of stigma, backlash, or exposure. And that helps leaders proactively respond to mental health challenges before they become big issues. Companies use anonymous pulse surveys to track mental health culture. Based on the results, they offered targeted workshops and adjusted workloads. This showed staff that leadership was listening and responsive.

Promote flexible work hours to prevent burnout and mental distress: Promoting flexible work hours is low-hanging fruit, a smart and practical way to help prevent burnout and mental distress—especially in today’s fast-paced and high-pressure work environments. It shows employees that their well-being is valued, and it gives them the space to balance life’s demands with their workload. When employees are encouraged to switch off after hours, and managers are trained to model healthy work-life habits, this reduces the stigma of taking rest and sets a tone that taking care of your mind is a priority.