American workforce burnout reaches 6-year high

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Aflac (NYSE:AFL) released its 15th annual Aflac WorkForces Report on October 9, 2025, finding workplace burnout at a six-year high and rising financial fragility among U.S. employees.

Key findings: 72% of employees report moderate-to-very-high stress; Gen Z 74% burnout rate; 44% couldn’t cover $1,000 OOP medical costs; confidence in coverage fell to 58%. Report highlights gaps in benefits communication and demand for supplemental insurance (90% say need is rising; only 34% of employers offer it).

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15^th annual Aflac WorkForces Report uncovers highest prevalence of stress among African Americans and younger generations

COLUMBUS, Ga., Oct. 9, 2025 /PRNewswire/ -- Burnout among Americans in the workplace has escalated to a six-year high, according to the 15^th annual Aflac WorkForces Report¹ released by Aflac Incorporated, a leading provider of supplemental health insurance and products in the U.S.² The report tracks the state of the American workplace among employees and employers — shining the light on trends, attitudes, needs and experiences in health care and benefits administration.

Toll of stress and burnout 

Nearly 3 in 4 (72%) U.S. employees face moderate to very high stress at work. Gen Z has surpassed millennials as the most burned-out generation, with 74% experiencing at least moderate levels of burnout, compared to 66% of millennials in 2025. The report reveals fewer employees are confident that their employers care about their mental health (48%, compared to 54% in 2024). Heavy workloads (35%) continue to be the top driver of stress. Outside of work, employees across all generations face stress and worry around finances, personal responsibilities and uncertainty about the future.

"New Aflac WorkForces Report data around the prevalence of stress and burnout should raise a red flag and is certainly a matter that requires attention," said Aflac Chief Strategy Officer Matthew Owenby. "Breaking the cycle of stress and burnout may begin with employers carefully analyzing employees' responsibilities both on and off the clock and threading the needle between productivity and home life balance. Developing a broader understanding of what is driving stress can support the creation of programs that alleviate burnout which, in turn, can deliver a higher level of productivity."

Looming undercurrent of financial fragility

American workers continue to feel financially fragile. More than 2 in 5 (44%) employees — and 54% African Americans, 51% Gen Z and 46% U.S. Hispanics — said they could not pay $1,000 in out-of-pocket costs for an unexpected illness or injury. As prescription drug prices and health care costs rise, American workers are experiencing medical cost anxiety, "medanxiety." More than half (52%) of employees say they feel anxious about health care costs not covered by their insurance. Medanxiety is highest for Gen Z (61%, up from 54% in 2024) and is on the rise for baby boomers. Nearly half of employees have delayed treatment or medical care because they could not afford it (45%), and 40% weren't sure if it was covered by their health insurance.

According to the report, American employees' confidence in their health care coverage if faced with a major health event has declined over the past year (58%, compared to 64% in 2024). Most employees underestimate the financial burden of a serious diagnosis. For example, nearly three-quarters (72%) believe the out-of-pocket cost for a year of cancer treatment would be under $2,000. According to a recent Journal of American Medical Association (JAMA) Network study³, privately insured patients with newly diagnosed cancer, particularly those with more advanced disease, had substantial out-of-pocket costs in just the first six months after diagnosis (averaging nearly $600 per month) — with later diagnosis stages costing even more and continuing care incurring additional expenditures each year.

Employers understanding of employee benefits needs shows decline

Nearly three-quarters (72%) of employers believe their employees understand their total health care costs, yet only 54% of employees say they do, according to the report. Only 2 in 5 (42%) employees are confident that they understand everything about their health insurance policies, down from 49% in 2024. More than two-thirds (69%) of employees say they wish their organizations would provide more information about their benefits packages than they currently receive. Employers could help employees by communicating more about benefits, as 54% say they only communicate about it leading up to open enrollment.

Supplemental benefits stand out as an important part of a comprehensive benefits package and a viable step toward financial stability and peace of mind. They can help fill the financial void left by high deductibles, co-pays or other unexpected medical expenses. The study shows 90% of employees believe the need for supplemental insurance is increasing — most notably among U.S. Hispanics (94%), African Americans (93%) and Gen Z (94%). African Americans (60%) and U.S. Hispanics (50%) are more likely to purchase voluntary benefits to help offset financial costs of health care, yet only a third (34%) of all employers offer supplemental insurance options to their employees.

"Supplemental insurance — something that 90% of employees believe is needed but only 34% of companies offer — can help ease financial stress and bring added peace of mind to their workforces, improving well-being that can lead to increased productivity and retention," said Owenby. "This can have a profound impact on business outcomes."

Added benefits of belonging in the workplace

Fostering a sense of belonging is vital to a healthier, more productive workplace. The report underscores that when employees feel they belong and have purpose, satisfaction rises, stress eases, burnout drops and engagement deepens. Employees who feel they belong experience far less workplace stress (30%, compared to 56%) and lower levels of burnout (55%, compared to 78%), compared to employees who don't feel they belong. They also report much higher overall job satisfaction (77%, compared to 28%) — and are more satisfied in their relationships with colleagues (80%, compared to 34%) and superiors (78%, compared to 29%).  

"Employees' sense of belonging influences how they feel about their roles, colleagues and organization as a whole," said Owenby. "We should all take note and explore ways to build cultures that genuinely support opportunities for a more engaged workforce — one that is grounded in purpose and value. Belonging is a powerful driver of employee well-being."

The 2025-2026 Aflac WorkForces Report highlights the vital role of comprehensive benefits in employees' well-being, satisfaction, resilience and retention. Additional survey findings trends and more can be found at Aflac.com/AWR.

ABOUT THE 2025-2026 AFLAC WORKFORCES REPORT

The 2025-2026 Aflac WorkForces Report is the 15th annual employee study examining benefits trends and attitudes. Conducted by Kantar on behalf of Aflac, the employer survey took place online between April 2 and April 29, 2025, and the employee survey took place online between April 2 and May 6, 2025. Throughout this report, some percentages may not add up to 100% due to rounding. The surveys captured responses from 1,002 employers and 2,000 employees across the United States. Aflac includes Aflac and/or Aflac New York and/or Continental American Insurance Company and /or Continental American Life Insurance Company. For more information, visit Aflac.com/AWR.

ABOUT AFLAC INCORPORATED

Aflac Incorporated (NYSE: AFL), a Fortune 500 company, has helped provide financial protection and peace of mind for nearly seven decades to millions of policyholders and customers through its subsidiaries in the U.S. and Japan. In the U.S., Aflac is the No. 1 provider of supplemental health insurance products.³ In Japan, Aflac Life Insurance Japan is the leading provider of cancer and medical insurance in terms of policies in force. The company takes pride in being there for its policyholders when they need us most, as well as being included in the World's Most Ethical Companies by Ethisphere for 19 consecutive years (2025) and Fortune's World's Most Admired Companies for 24 years (2025). In addition, the company became a signatory of the Principles for Responsible Investment (PRI) in 2021 and has been included in the Dow Jones Sustainability North America Index (2024) for 11 years. To find out how to get help with expenses health insurance doesn't cover, get to know us at aflac.com or aflac.com/español. Investors may learn more about Aflac Incorporated and its commitment to corporate social responsibility and sustainability at investors.aflac.com under "Sustainability."

Media contact: Jon Sullivan, 706.573.7610 or jsullivan@aflac.com
Analyst and investor contact: David A. Young, 706.596.3264 or dyoung@aflac.com

¹ Aflac.com/AWR
² LIMRA 2023 US Supplemental Health Insurance Total Market Report
³ JAMA Network: Estimated Out-of-Pocket Costs for Patients With Common Cancers and Private Insurance

Aflac's family of insurers include American Family Life Assurance Company of Columbus and American Family Life Assurance Company of New York.

Aflac | WWHQ | 1932 Wynnton Road | Columbus, GA 31999

 

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SOURCE Aflac

FAQ

What did Aflac announce in the 2025 Aflac WorkForces Report (AFL) on October 9, 2025?

Aflac reported a six-year high in workplace burnout, rising "medanxiety," and demand for supplemental insurance, with key metrics like 72% of employees reporting moderate-to-very-high stress.

How does the 2025 report say burnout rates compare by generation for Aflac (AFL)?

The report shows Gen Z with the highest burnout at 74%, surpassing millennials at 66% in 2025.

What financial vulnerability metrics did Aflac (AFL) report on October 9, 2025?

Aflac reported 44% of employees could not pay $1,000 in unexpected out-of-pocket medical costs and 52% feel anxious about uncovered health care costs.

What did the Aflac (AFL) report say about employee confidence in health coverage?

Employee confidence in coverage for a major health event declined to 58% in 2025, down from 64% in 2024.

How prevalent is interest in supplemental insurance per the Aflac WorkForces Report (AFL)?

Ninety percent of employees said the need for supplemental insurance is increasing, while only 34% of employers currently offer it.

What workplace benefits issues did Aflac (AFL) highlight that could affect retention and productivity?

The report highlights poor benefits communication, high financial stress, and low perceived employer care for mental health, all linked to higher burnout and lower retention.