In October 2024, the mental health of Canadian workers reached a low not seen since the creation of the TELUS Mental Health Index in April 2020, at the dawn of the COVID-19 pandemic (then an index from LifeWorks, a consulting 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 in April 2020, according to data revealed in the report TELUS Mental Health Index: Special Report on Financial Wellbeing, published 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 64.4.

This score remains within TELUS Health’s “high mental health risk” zone, 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%, the report's authors point out.

All sub-scores drop  

The TELUS Health report also reveals that all mental health sub-scores dropped significantly in October, compared with September.

Anxiety and isolation remain the lowest mental health sub-scores in almost three years.

The financial risk sub-score showed the sharpest decline in October, down 6.8 points on the previous month.

Cost of living pressures  

According to the TELUS Health report, cost-of-living pressures affect the financial wellbeing of 60% of workers. This group's mental health score is nearly eight points below the national average. It is almost 24 points lower than that of workers who manage to maintain their financial wellbeing in the face of the cost of living.

Financial stress has an impact on productivity: 23% of workers say that their financial situation has had a negative impact on their productivity at work over the past three months, according to the report. The mental health score for this group is more than 15 points below the national average.

In a press release accompanying the report, Paula Allen, Global Leader, Research and Insights, TELUS Health, expressed concern that the most notable decline was in financial wellbeing.

But there has been some positive economic news of late. The Bank of Canada reduced its key rate several times, from 5% to 3.25% between April 10 and Dec. 11, 2024. Inflation has hovered around 2% since August 2024. It stood at 1.9% in November, after starting the year at 2.9%. “We expect it to be close to target, on average, over the next couple of years,” said central bank governor Tiff Macklem in his preliminary statement on the interest rate cut.

However, despite the recent slowdown in inflation, grocery prices have risen 19.6% and shelter prices 18.9%, compared with November 2021, stated Statistics Canada in The Daily published Dec. 17, 2024.

Paula Allen believes that the arrival of the holiday season also plays a role in the decline in mental health scores in October. “As we approach a season of increased spending and social expectations, many are feeling the strain of current economic pressures,” she explains. 

Financial education sessions offered by EAPs are particularly useful in these difficult times - Paula Allen

Allen says that people without emergency funds are more likely to perceive money as a source of stress and anxiety, particularly young people and parents. The report defines young people as workers under the age of 40. “Employers can make a meaningful difference by promoting resources like Employee Assistance Programs (EAPs)…The financial education sessions provided by EAPs are particularly valuable in these challenging times," she adds.

Three pieces of advice from a doctor  

Dr. Matthew Chow, Chief Mental Health Officer at TELUS Health, stated that this time of year “often brings additional challenges and sensitivities that can deplete our resilience.”

 Many struggle silently, feeling they shouldn't voice their concerns during what's supposed to be a joyful period - Matthew Chow 

Dr. Chow's advice is to seek help when needed. “Many struggle silently, feeling they shouldn't voice their concerns during what's supposed to be a joyful period. It's crucial to remember that these feelings are common – you're not alone. EAPs offer confidential, no-cost support for those who need it,” he said.

Dr. Chow offers three tips for maintaining financial wellbeing during the holidays:

- Set a holiday budget and stick to it:

He suggests setting spending limits on gifts, entertainment and festivities, and keeping track of spending. 

- Talk openly about finances:

He urges frank conversations with family and friends, to set realistic expectations.

- Use available resources:

He urges plan members to take advantage of their Employee Assistance Program for financial advice on budgeting and debt management, among other things. 

Debt management will be crucial for many. In its report, TELUS Health noted that two-thirds of workers have debts. The report states that those with an annual household income of less than $100,000 and those without emergency funds are more likely to have significant debt. It states that mortgages, personal loans and car loans are the main sources of debt for Canadian workers.