Global employee engagement has declined to its lowest level since 2020, with a new Gallup report on the trend highlighting a significant downturn driven by disengaged managers and affecting workers across every world region. The report, released this week, confirms a second consecutive year of decline, painting a stark picture of the modern workforce's psychological connection to their jobs and organizations.

Who Is Affected by the Engagement Downturn?

Only 20% of employees worldwide were engaged in their work in 2025, marking the lowest point in five years, according to Gallup’s 2026 State of the Global Workplace report. This broad-based challenge for businesses shows 64% of the global workforce is "not engaged," while 16% are "actively disengaged," potentially undermining colleagues' morale and productivity.

Analysis confirms specific regions and roles are disproportionately affected by this trend.

  • Managers: Perhaps the most critical finding is the sharp decline in engagement among managers themselves. Gallup data indicates that manager engagement has fallen by nine percentage points since 2022. This group is pivotal, as their engagement levels directly influence the teams they lead. A disengaged manager is far less likely to foster an environment where their direct reports can thrive, creating a cascading effect of disinterest throughout an organization.
  • Workers in South Asia: This region experienced the most substantial year-over-year drop in employee engagement. According to Gallup, engagement in South Asia fell by five percentage points. Within this region, reports from sources like The Economic Times suggest India is a notable center of this trend, with a rise in "quiet quitting" affecting many workplaces.
  • European Employees: Europe continues to report the lowest level of employee engagement of any world region. The rate stands at just 12%, having declined by one percentage point in the past year. This persistent low engagement suggests deep-seated, systemic issues within the European work culture that remain unresolved.
  • U.S. and Canadian Employees: While this region still boasts the highest engagement rate in the world at 31%, it is not immune to negative trends. A report from PR Newswire highlights a concerning counter-trend: employee wellbeing in the U.S. and Canada has declined to a new low for the region. Just over half (51%) of employees are now classified as "thriving," indicating that even in highly engaged regions, stress and burnout remain significant challenges.