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Lyra Health’s 2026 Workforce Mental Health Forecast Reveals Sharp Rise in Mental Health Leaves

via Business Wire

New report finds employers are focused on developing workforce resilience as 65% say mental health–related leaves are increasing

Employers have made major strides in workforce mental health for the past several years—reducing stigma, enhancing access, and providing higher-quality, higher-value care. As 2026 approaches, however, new pressures are testing that progress.

Lyra Health, the leading provider of mental health solutions for employers, health plans, and health systems, today released its 2026 Workforce Mental Health Trends Forecast, revealing that employers are entering a new era defined by prevention, personalization, and resilience—while balancing rising costs and demand for measurable impact.

The sixth annual survey of more than 500 HR and benefits leaders across U.S.-based organizations with global workforces found that nearly all (98%) say comprehensive mental health benefits are essential to attracting and retaining talent. Yet 65% report a rise in mental health–related leaves, a sign that traditional approaches are no longer enough. As employee resilience wanes, family stress intensifies, and AI introduces new uncertainty, employers are being called to rethink how they support their workforce and define value.

“We’re seeing the same kind of inflection point that reshaped the industry a decade ago,” said Joe Grasso, PhD, Vice President of Workforce Transformation at Lyra Health. “Back then, the focus was on replacing traditional EAPs with more comprehensive care. Now employers are emphasizing prevention, sustainable work design, and specialized care—while equipping workforces with the skills and support to adapt to the future of work.”

Mental Health Progress Slips as Complex Conditions Surge

More than half of benefits leaders say employee well-being has improved in recent years, but those gains are slipping.

  • Complex conditions such as severe anxiety, depression, or trauma are up 88% year over year.
  • Substance use cases have climbed by 26% year over year.
  • Nearly 7 in 10 say mental health challenges are significantly affecting employees’ ability to do their jobs.

Employers are responding with early identification, specialty care programs, manager training, and return-to-work programs aimed at reducing time out on leave and improving recovery.

The Family Squeeze: Rising Caregiver Stress Emerges as a Top Workforce Risk

Nearly half of HR and benefits leaders now rank family and caregiving stress as one of their top workforce concerns, a tenfold increase from last year.

  • 90% say employees struggle to find caregiver-specific benefits.
  • 89% say quality mental health care for kids and teens remains hard to access.
  • 46% call expanding family support their top priority for 2026.

Employers are expanding access to child and teen care, offering caregiver-specific tools, and adding flexibility to reduce stress across households.

The Neurodiversity Imperative: A New Priority for Employers

As mental health benefits evolve, employers are turning attention to neurodiversity as the next frontier in workforce well-being and performance.

  • 94% of HR and benefits leaders are exploring ways to better support neurodivergent employees and families.
  • 72% of managers say they feel unprepared to lead neurodiverse teams.
  • For working parents, long wait times for evaluations—often 4–6+ months—continue to delay care and compound family stress.

Forward-thinking employers are closing these care gaps through early evaluation, manager education, and access to specialized providers.

“Trends like rising leaves, caregiver strain, and increased awareness of neurodiversity reflect both the progress and the pressures shaping today’s workforce,” said Dr. Alethea Varra, Chief Clinical Officer at Lyra Health. “The opportunity for employers is clear: pair modern benefit design with clinical depth. By investing in early intervention, integrated care, and strong manager support, leaders can protect both their people and their bottom line.”

Additional Findings from Lyra’s 2026 Forecast

  • The AI Paradox: 35% of leaders say AI is driving employee stress and job anxiety; only 23% expect improved work-life balance due to reduced workload.
  • Manager burnout is spreading: 96% of leaders say managers are central to mental health strategy, but 95% believe they need more support to meet rising employee mental health demands.
  • ROI is evolving: 94% say demonstrating ROI to the financial leadership team continues to be a top priority, with leaders expanding metrics to include productivity and engagement.

For more insight into the key trends shaping the year ahead and actionable tips for employers, download the 2026 Workforce Mental Health Trends Forecast here.

About Lyra Health

Lyra Health is the leading provider of Workforce Mental Health benefits, serving more than 20 million people globally through direct employer contracts and more than 100 million through health plan and partner relationships. Lyra is transforming access to life-changing mental health care through Lyra Empower, the only fully integrated, AI-powered platform combining the highest-quality care and technology solutions for members, providers and HR leaders. Empower works in the background to quickly connect members to the largest global network of evidence-based mental health providers, deliver actionable insights to benefit leaders, and free up providers to focus on client care—driving outstanding positive outcomes that are equitable across diverse racial and ethnic groups. Extensive peer-reviewed research confirms Lyra’s transformative care model helps people recover twice as fast and results in a 26% annual reduction in overall healthcare claims costs. For more information, visit lyrahealth.com.

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