Economic instability, chronic disease, and social disconnection are converging to test the resilience of Canada’s workforce — and many employees are struggling to keep up, according to new research from Sun Life.
It found nearly half (45.1 per cent) of Canadians live with at least one major chronic disease, with diagnoses occurring at younger ages than in previous generations. Mental health conditions now account for nearly 40 per cent of long-term disability (LTD) claims, while 38 per cent of workers report feeling lonely or socially disconnected, according to The Resilient Organization: Navigating Challenges and Thriving in Uncertainty.
“These pressures don’t exist in isolation,” said Carmen Bellows, Sun Life’s director of mental health. “When economic uncertainty, health challenges and social isolation hit at the same time, it can lead to burnout and significant impacts on productivity, absence rates and retention.”
Economic and health pressures converging
While rising mental health claims have been a years-long trend, Bellows said current conditions are adding fuel to the fire. Since 2019, LTD claims for physical conditions such as musculoskeletal disorders, cancer and circulatory diseases have stayed stable or declined, but mental health claims have increased each year.
“There’s no single cause of disability due to mental disorders,” she said. “It’s a combination of genetic vulnerabilities, biological factors, chronic stress, adverse childhood experiences, and social disconnection and loneliness.”
The pandemic’s after-effects, growing demands in personal and family life, and broader societal pressures are all contributing factors. Workers with multiple demands — such as managing a chronic health condition while caring for children or aging parents — face a heightened risk of exhaustion and disengagement.
The economic picture adds another layer. Market volatility, supply chain disruptions and job insecurity have left many workers on edge, while also increasing workloads as companies adapt. “Uncertainty impacts focus, productivity, and overall well-being,” the report notes. Organizations that respond with clear communication, mental health support and flexible work policies are better positioned to weather the disruption.
Social disconnection a growing concern
Sun Life’s research found that nearly four in 10 Canadian workers experience loneliness, isolation or social disconnection. Of those reporting poor social health, 47 per cent say they have high levels of daily stress.
The consequences extend beyond mental health. Relationship satisfaction at age 50 is a better predictor of physical health at 80 than cholesterol levels, according to research cited in the report.
Bellows said social disconnection can be both a cause and a consequence of poor mental health.
“Having a mental disorder can lead to social disconnection due to societal and internalized stigma,” she said. “At the same time, disconnection can contribute to depression, anxiety, suicidality and other serious mental disorders.”
Employers can help counteract this by building opportunities for authentic connection, said Bellows. Peer networks, team outreach initiatives and volunteer opportunities are examples of low-cost strategies that can improve workplace belonging.
The burnout risk
When multiple stressors collide, prolonged stress can push employees into burnout — a state of emotional, physical and mental exhaustion that can have lasting impacts.
Burnout can show up in different ways:
- Physical signs: fatigue, changes in sleep patterns, loss of appetite.
- Emotional signs: irritability, self-doubt, feelings of failure, cynicism.
- Behavioural signs: withdrawal from colleagues, procrastination, increased conflict.
“If leaders sense burnout, it’s important to reach out and keep the lines of communication open,” Bellows said. She emphasized that regular check-ins, not just crisis conversations, help managers notice changes in behaviour early and respond before issues escalate.
Building organizational awareness
Recognizing when the workforce needs support requires both organizational and individual engagement. Bellows recommends regular employee surveys, questions about mental well-being, and frequent “pulse checks” to gather real-time feedback.
For managers, one-on-one meetings with team members should be routine and predictable, not reserved for performance reviews or problem-solving.
“Those ongoing conversations build rapport and trust,” she said. “When things go wrong, the relationship is already there.”
Managers do not need to be mental health experts, Bellows said. Their role is to notice changes in performance or behaviour, open a dialogue using a tentative, non-judgmental approach, and point employees toward appropriate resources. These might include an employee and family assistance program, mental health coaching, online cognitive behavioural therapy, or even a financial advisor if money stress is a factor.
Leaders set the tone
Bellows said transparency and role modelling are crucial during periods of uncertainty.
“If we’re going to say we care about these things, it’s important to act on that and live it,” she said.
Leaders who set clear boundaries, take time off when needed, and demonstrate healthy work habits send a signal that balance is not just possible — but acceptable. Without that example, employees may feel pressure to hide struggles or overextend themselves.
She warned against treating mental health initiatives as “checklist items” that lack follow-through. Embedding well-being into policies, processes and workplace culture makes support tangible and credible.
Resilience is a learnable skill
The report frames resilience as a “muscle” that can be developed over time. Employers can help employees strengthen it by supporting five key attributes:
- Social connections: creating opportunities for authentic relationships.
- Purpose: helping employees see meaning in their work and future growth.
- Health and wellness: promoting healthy habits and access to care.
- Healthy thoughts: encouraging reframing of negative thinking and problem-solving.
- Seeking help: normalizing the use of available supports.
These attributes, when reinforced through organizational policies and culture, can increase both individual and business resilience, the report says.
The bottom line for employers
Poor resilience at the individual level can weaken a company’s overall ability to respond to change. Productivity may drop, absence costs can rise, and retention can suffer. But resilience can be built — and organizations that invest in it are more likely to thrive during uncertainty.
“It’s not static,” Bellows said. “Whether someone is naturally resilient or not, they can strengthen it over time.”
HR News Canada has partnered with Sun Life on a special, in-depth series exploring resilience in the workplace. Throughout September, we’ll release new articles, videos, and a podcast designed to help HR professionals, business leaders, and employers strengthen their organizations by supporting the people who power them.
From practical strategies to expert insights, this series will highlight how resilience can drive healthier workplaces, improve performance, and foster long-term success. New content will be added each week — check back often or subscribe to stay updated as the series unfolds. See the full series here.
