A study published today by the Mental Health Foundation has revealed that workers in Wales fare worse than in any other UK nation in terms of mental health, job-related wellbeing, income dissatisfaction and in-work financial hardship.
The most recent data found more than a quarter (26%) of Welsh workers, or 372,000 people, were experiencing poor mental health in 2024 – significantly higher than the UK average, which sits at 22%. The number of workers in Wales with poor mental health has increased by 183,000 in just 15 years, doubling the figures seen in 2009/10. This marks the steepest deterioration in workforce mental health observed anywhere in the UK.
According to analysis by the Mental Health Foundation, a rising number of workers say their job is harming their mental health – one in five workers (19%), 273,000 thousand people in Wales, disclose feeling stressed or unhappy due to their job most or all of the time.
The findings are detailed in The Foundation Reports: Employment and mental health inequality and includes analysis of the Understanding Society longitudinal dataset which surveys the same 40,000 individuals, across the UK, to track their experiences over the years.
Worryingly, Wales appears to be diverging from the rest of the UK, with the mental health gap widening from just 0.1 percentage points in 2020/21 to 4.6 percentage points in 2023/24. The mental health of the Welsh workforce has shifted from steady decline to sharp deterioration with levels exceeding those experienced during the pandemic. This rapid decline signals deeper challenges within the Welsh labour market may be emerging, with workers reporting poor mental health alongside high levels of income dissatisfaction and financial hardship. The consequences of this deepening mental health crisis are felt far beyond the workplace, affecting families and communities and risking long-term disadvantage for the Welsh workforce.
The report links worsening worker mental health to growing financial pressures. During the cost-of-living crisis, the proportion of Welsh workers experiencing financial hardship nearly doubled from 6% in 2020/21 to 11% in 2023/2024 (one in nine), while almost half of Welsh workers (49%) state they are dissatisfied with their income – a striking rise from 36% just three years earlier. This level of income dissatisfaction is notably higher than the UK average of 43% and highlights a growing sense of financial strain across the Welsh workforce.
Whilst employment has increased in Wales over the past decade, it’s still lower than UK rates (73% compared with 76%), so too is economic activity (24% compared with 21% across the UK). These stark statistics paint a picture of a workforce under mounting pressure, marked by rising mental health difficulties and sustained financial stress.
Catherine Razzell, Policy and Public Affairs Manager for Wales at the Mental Health Foundation, said:
“Work can and should support good mental health. At its best, it gives us purpose, social connection, financial security and a sense of control over our lives. That’s why it’s deeply concerning to see so many more Welsh workers struggling with their mental health than just 15 years ago and the Welsh workforce, at large, facing these deeply embedded challenges.
“But this isn’t inevitable. We know what helps: secure jobs, fair pay, engaged managers, actions to prevent absence and support recovery and workplaces where people feel valued and able to speak openly about their mental health.
“Whilst the will is there to improve the state of fair work and workplace wellbeing through Welsh Government initiatives, the reality from the data available is falling short in terms of job quality, income security and workforce wellbeing.
“Imminent action is required by Welsh Government and employers to pull the Welsh workforce out of these depths; prevent mental health problems at work, and create healthier workplaces that support people to thrive, benefitting people, businesses and the wider economy.”
Although keenly felt by many, the last 15 years shows workforce mental health decline has been worst for groups who are already at risk of developing poor mental health. Disabled people, those with long term conditions and young people are experiencing higher levels of poor workplace wellbeing outcomes. Lone parents also face intense financial hardship. This report focuses on workforce mental health inequalities and workforce exclusion of those groups; echoed by accounts made directly from people with lived experience.
The report details a series of recommendations for both Welsh and UK Government, who share responsibilities for areas that impact the Welsh workforce and economy, and employers to better support employee mental health. This includes strengthening support for people to stay in and return to work while tackling the workplace and financial pressures that can damage mental health or push people out of employment altogether.
The Mental Health Foundation calls for the Welsh Government to:
- Treat childcare as labour market infrastructure, recognising its importance in supporting parents, particularly women, to enter, remain and progress in work.
- Do more to tackle practical barriers to participation through more integrated employability and wellbeing support, alongside solutions to issues such as transport and caring responsibilities.
Working alongside employers to:
- Strengthen employer-facing support on workplace health and healthy work design including expanding initiatives such as Healthy Working Wales that promote shared learning on good practice in workplace mental health.
Catherine warns:
“Without action that tackles the root causes of poor mental health, including financial insecurity and adverse working conditions, the wellbeing of the Welsh working population is likely to deteriorate further.”
The Foundations Reports: Employment and mental health inequality can be read here: The Foundations Report: Employment and mental health inequality in Wales
