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Americans with reduced salary have lower mental health scores than those who recently lost jobs

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Corporate / Mental Health / United States

Americans with reduced salary have lower mental health scores than those who recently lost jobs

Morneau Shepell's Mental Health Index™ reveals healthcare workers see some improvement in mental health; other essential workers see their mental health decline

CHICAGO, June 3, 2020 – Morneau Shepell, a North American leader in integrated HR solutions, today released its May 2020 Mental Health Index™ results. Measuring against a benchmark of 75, employees whose salaries were reduced in May, reported lower mental health scores (-12.7) than those who recently lost their jobs (-10.5). Those who experienced a reduction in salary may have lower mental health scores due to the uncertainty of their future, whereas those who recently lost their jobs may have a temporary cushion of a severance package. For context, 63 percent of US respondents indicated that they remained employed at the same income level, while 27 percent indicated either a reduction in hours or salary. Meanwhile, 10 percent reported recent job loss.

People in households with five or more adults have the lowest Mental Health Index™ scores of any group (-14.7 compared to the benchmark of 75). This group also had a very significant decline from where they were in April (-8.3). The main factors affecting this group’s mental health include the risk of exposing older loved one to virus; the return of adult children; multiple adults working from home; or having more than one adult being exposed to risk by going in and out of the home.

Overall, the May results showed a slight improvement in Americans’ mental health, compared to the sharp dive it took in April with the onset of the COVID-19 pandemic. The Mental Health Index™ shows that in May, Americans had a mental health score of -6.0, which is a slight improvement from April’s score of -8.0. April’s score marked the greatest decline in the mental health of Americans for the past three years, during which Morneau Shepell compiled the benchmark mental health data.

Impacted industries, non-healthcare essential workers show signs of strain

Worker mental health varied by industry when comparing to the benchmark. On the low end of the scale, arts/entertainment/recreation (-13.9), accommodation (-10.5) and utilities (-10.0) continued to see declines in worker mental health. Of those groups, workers in the arts/entertainment/recreation and accommodation (the hotel industry) face uncertain futures as many parts of the country remain on lockdown. Utility workers are continuing to work as usual – potentially at risk of exposure to the virus – but they are not as visible and as such do not receive the same level of much-deserved public displays of gratitude and societal support as many other essential workers. Meanwhile, respondents who worked in administrative services (-7.6), management of companies (-7.0) and construction (-5.3) saw the greatest improvements.

“As the COVID-19 pandemic continues, the Mental Health Index™ shows the devastating impact that ongoing disruption can have on the quality of American workers’ mental health," said Stephen Liptrap, president and chief executive officer. "While we’re seeing early signs of hope in certain areas, we are in this for the long-term, which is a cause for concern as the virus and its impact on the economy continue.”

Employees who had access to an employee assistance program had much better Mental Health Index™ scores (-5.2) than those who did not (-7.6) compared to the benchmark of 75. “The good news is that support employers provide to their workforce matters,” noted Liptrap. “The data shows that very clearly.”

Workers gradually accepting a prolonged battle

The Mental Health Index™ also shows deteriorating confidence that the personal disruption caused by the pandemic will end relatively soon. In April, 27 percent of workers believed that the disruption of COVID-19 would have ended by June 2020. By early May, however, only 15 percent believed this. Now, 24 percent of respondents (the largest group) are preparing for the disruption to end no earlier than January 2021 (an increase from just 10 percent in April 2020).

Finances and fear of losing loved ones remain highest concerns

The Mental Health Index™ also measured specific concerns and fears related to the pandemic. The most pervasive concerns affecting Americans' mental health remain:

  • the financial impact of the pandemic (49 percent);
  • losing a loved one (40 percent)
  • getting sick (37 percent); and
  • uncertainty around how the virus will impact family and relationships (25 percent).

“The Mental Health Index™ is critical in helping us understand changes to mental health over time. The pandemic is not a temporary issue. It is a major life and economic shift that will have ups and downs,” said Paula Allen, senior vice president of research, analytics and innovation. “We need to be aware of potential risk to ensure support is available to those in need. The slight improvement in May is encouraging. We also need to prepare for the impact of the second and perhaps third wave, which may have an even more profound impact than the first wave.”

Morneau Shepell will continue publishing the Mental Health Index™ on a monthly basis. It will assess changes in mental health and the issues that Americans are most anxious about as the situation and outlook evolves during and after the pandemic. 

About the Mental Health Index™
The monthly survey by Morneau Shepell was conducted from April 30 to May 11, 2020, with 5,000 respondents in total. All respondents reside in the United States and were employed within the last six months. The data has been statistically weighted to ensure the regional and gender composition of the sample reflect this population. The margins of error for the survey are+/- 3.2 per cent, valid 19 times out of 20. The full U.S. report can be found

About Morneau Shepell
orneau Shepell is a leading provider of technology-enabled HR services that deliver an integrated approach to employee wellbeing through our cloud-based platform. Our focus is providing world-class solutions to our clients to support the mental, physical, social and financial wellbeing of their people. By improving lives, we improve business. Our approach spans services in employee and family assistance, health and wellness, recognition, pension and benefits administration, retirement consulting, actuarial and investment services. Morneau Shepell employs approximately 6,000 employees who work with some 24,000 client organizations that use our services in 162 countries. For more information, visit


Heather MacDonald
Morneau Shepell

Mike Jurs